The price of dogecoin (DOGE) more than doubled overnight around the time a popular Twitter account from a WallStreetBets trader mentioned the meme-loving cryptocurrency in a tweet.
The Reddit-based trading community known as r/WallStreetBets discusses stock and options trading and has made headlines in recent days after causing havoc in the financial market by pumping stock and causing major headaches for short sellers.
According to a Bloomberg report, members of Reddit group SatoshiStreetBets were also excitedly egging on the DOGE action.
In response, the price of the Shiba Inu meme-based cryptocurrency shot up as much as 142%, from $0.007 to $0.017 in under two hours, according to CoinDesk 20 data. At press time, Thursday, DOGE was trading lower at $0.012.
The WallStreetBets Reddit community has in particular focused on GameStop (GME), driving its share price up nearly 900% in five days to around $347 on Wednesday. Amid signs of potential regulatory scrutiny over its actions, the message board has since been taken private by its moderators leaving followers searching for information on other social media sites.
The U.S. Securities Exchange Commisison (SEC) released a notice on Wednesday not directly acknowledging the group's activity, but stating it is "reviewing" the "ongoing market volatility."
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.