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Reddit group WallStreetBets, after deciding to drive up the value of GameStop’s (GME) shares and the price of the crypto Dogecoin (DOGE), has now apparently decided to pump Ripple (XRP).
In fact, today at 2.30 PM CET, the group set out to buy XRP en masse and thus cause its price to skyrocket.
Before XRP: WallStreetBets and market manipulation
Before getting caught up in the hype, it is worth noting that Dogecoin – after this pump – went down again just as quickly. In fact, thanks to WallStreetBets, the price had risen from around 0.01 cents to 0.07 cents and has now fallen again to 0.03 cents.
That’s why it’s better to be careful in such a volatile market, not to mention the fact that according to the law, manipulations are certainly not legal and punishable, so technically what the group is doing would not be legal.
Indeed, GameStop has been even more volatile than Bitcoin, as on January 26th alone, the stock gained 93.4% from $76 to $147.
The group’s goal, however, might also be seen as being a bit Robin Hood-like, enriching traders for a change and not Wall Street speculators who have been manipulating for much longer.
In any case, let’s remember that what Wall Street Bets is doing is not so different from what the influencers on Twitter are doing. Some time ago, for example, a tweet by John McAfee drove up the price of a crypto and in the same way a tweet by Elon Musk drove up Bitcoin – and some time ago Dogecoin.
Whether legal or not, these events demonstrate that all markets are very volatile, including stocks, so be careful when trading and only invest what you can afford to lose.