If you have not visited the CoinMarketCap platform in recent days, do not be alarmed: the first line of the most popular cryptocurrency tracker is now occupied not by Bitcoin, but by a token called WallStreetBets, dedicated to the WallStreetBets channel of the same name on Reddit.
As we know, over the past few days, anonymous people from this channel have made a lot of noise in the stock market, providing explosive growth in several stocks and losses for large players. Also, traders from Reddit have had a hand in the recent meteoric leap of the altcoin Dogecoin.
By tradition, let’s start with an explanation. The rating of cryptocurrencies is built according to the size of the market capitalization of each individual project, that is, the product of the number of tokens in circulation by their rate. For example, as of today, 18,614,500 coins have been issued on the Bitcoin network. Since the cryptocurrency rate is now $ 33,470, the capitalization of BTC is $ 623 billion.
Bitcoin is the asset with the largest capitalization among cryptocurrencies – today the figure is 62.2 percent. At the same time, the total market capitalization slightly exceeds the equivalent of a trillion dollars.
In this regard, it should come as no surprise that many cryptocurrency enthusiasts were intimidated by the changes on CoinMarketCap. Yet Bitcoin has always been the market leader with the largest market cap. However, now everything has changed – however, not for real.
Naturally, the WallStreetBets token is not a real asset, but just a joke from the platform’s management. Although he himself occupies the first line, he got the zero place in the rating by capitalization. The first place is still for Bitcoin, so fans of the first cryptocurrency have nothing to worry about: nothing happened to it.
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CoinMarketCap also issued a warning asking them not to take the comic asset seriously, Decrypt reports. It is not traded on exchanges, so any offers to exchange the WSB token should be considered an attempt to deceive.
According to the site, the joke token is allegedly valued at $ 483, has a market capitalization of $ 24.8 billion, an offer of 51 million coins and a daily trading volume of over $ 100 million. However, as it turned out, these figures did not arise from scratch. They appear to be related to previous performance by GameStop, a video game rental company caught between a bearish hedge fund and the WallStreetBets subreddit.
Note that the story with the purchase of GME shares began back in 2020. Since about last year, WSB members have started buying up GameStop shares. They motivated this by the fact that the company had enough capital on its balance sheet to rescue it from ruin, even though the crisis affected its traditional business model.
The situation came to a head a few days ago when GameStop’s value jumped from a couple of dollars to the $ 450 line, causing multi-billion dollar losses to hedge funds. But the victory was not entirely on the side of WSB: Robinhood, a popular broker among subreddit traders, has suspended all purchases of GME shares and said this is being done to control so-called «market manipulation.» He joined other brokerage firms like Ameritrade that suspended stock trading on a similar pretext last week.
In addition to a serious blow to Wall Street’s reputation, ordinary traders have managed to expose the inferiority and injustice of the traditional stock market. While brokers suspended trading for ordinary market participants, funds could transact, which is a prime example of discrimination. In addition, the purchase of shares and tokens was blocked on the Robinhood platform, not their sale. Later, fans of the WSB community switched from stocks to the altcoin DOGE, thanks to their efforts, DOGE increased in price eight times in just one day.
We think the joke from CoinMarketCap representatives was a success. Moreover, they not only played out the community, but at the same time supported the representatives of the Reddit channel in their fight against injustice in the financial market. Naturally, the opposite of the current system is decentralization, in accordance with the fundamentals of which cryptocurrencies operate.
Therefore, the support of the latest events from the platform that displays data on cryptocurrencies is not surprising. Let’s hope that even more companies will join the initiative – and in no less interesting form.