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“Meme stocks” like AMC and GameStop have captured the attention of the financial world.
But few understand what is actually driving these furious price rallies.
THREAD: The mechanics of a meme stock rally:
1/ First off, what is a meme stock?
There is no single definition, but meme stocks can be understood as stocks that experience rapid upward price movements as a result of collective social media evangelism.
The price movements are typically not related to business fundamentals.
2/ AMC and GameStop are the two most salient examples of meme stocks from recent memory.
Both experienced furious, Reddit-fueled rallies that left the financial establishment scratching their heads.
Heroes emerged, like fearless leader @TheRoaringKitty (who is not a cat!).
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Why: Beyond Protocol is an insanely ambitious blockchain project focused on building the fabric of the new, connected digital world. It is an incredible team led by @jmanzi123 and others.