A campaign by members of a Reddit investor forum have caused GameStop stock to spike to record levels in the last week.
SkyBridge Capital’s Anthony Scaramucci said Wednesday that retail investor-led stock surges for video gaming firm GameStop suggest bitcoin will ultimately be a success.
On Tuesday, a volatile trading session largely driven by a campaign by members of the Reddit forum r/WallStreetBets saw GameStop (NYSE: GME) jump 92.7%. Trading of the stock has been halted multiple times in the last week as price spikes triggered market protections.
After Elon Musk joined the fray, tweeting “GameStonks,” shares rose 50%. The video gaming stock is now worth $10 billion and classified as a large-cap stock, according to Bloomberg.
Scaramucci said in an interview with Bloomberg that this strong individual trader market action is “proof of concept that [b]itcoin is going to work,” and should be taken “seriously.”
He suggested the “decentralized” investor activity is similar to the fundamental concept behind bitcoin (BTC, -7.55%), while mobile-based and low-cost trading are “democratizing” formerly insular markets.
“How are you going to beat that decentralized crowd? That to me is more affirmation about decentralized finance,” Scaramucci said.
In early January, SkyBridge launched a new bitcoin fund, saying its exposure to bitcoin was already worth $310 million.
By: Tanzeel Akhtar