This Stock is Acting Like Crypto, Pumps 200%

The shares of LGBTQ social media platform Grindr pumped over 200% to roughly $40 on Nov. 18, 2022, after the corporate merged with Tiga Acquisition Group in a deal price $2.1 billion.

Grindr’s share value ended the buying and selling day on Nov. 17, 2022, at $11.63 and opened the buying and selling day on Nov. 18, 2022, at $17.00, up 46.2% in a single day.

DOGE and SHIB rallies come to thoughts

The surge in value was prompted partly by the low float of 500,000 shares and by curiosity within the firm. The inventory has since fallen barely to $36.50.

Different shares racking up important good points on Nov. 18, 2022, embody PaxMedica, a pharmaceutical firm, whose shares have gained 36.8% in intraday buying and selling to alternate fingers at $2.135, and YTRA, a travel-based firm, noticed an increase of 33% in intraday buying and selling to $2.82.

The surge in Grindr inventory is paying homage to the early rallies of meme cash like Dogecoin, for which value will increase of 10,000% and better weren’t unusual in 2021.

Between Jan. 27, 2021, and Might 8, 2021, the coin rose over 10,000% from $0.002 on the finish of Jan. 2022 to $0.68 early Might.

The surge in Doge occurred as speculative buyers piled into cryptos throughout and after the Covid-19 pandemic. Nationwide lockdowns resulted in document buying and selling volumes pushed by slick buying and selling interfaces from the likes of Robinhood Markets. Bloomberg reported a rise of roughly 149% within the variety of taxpayers invested in cryptocurrencies in 2020 in comparison with 2019.

Dogecoin preceded one other memecoin, Shiba Inu, which additionally racked up good points of roughly 11,000% between the top of Sep. 2021 and the top of Oct. 2021.

Memecoins differ from different main cryptocurrencies as a result of they’ve little worth or utility past hypothesis.

DOGE tracks Musk’s tweets

The sentiment of movie star influencers usually drives memecoin value rallies.

A living proof is that Dogecoin’s value has roughly tracked bullish statements made by the Twitter proprietor and Tesla CEO Elon Musk, whose tweets have pushed up the price of Doge by as a lot as 20% inside a day.

On the flip aspect, damaging movie star sentiment can drive down the value, as was seen when Binance CEO Changpeng Zhao tweeted that Binance would promote its holdings of FTX’s FTT token, price $540 million on the time. The token fell 76% on Nov. 8, 2022, roughly two days after the tweet, with Zhao’s message spooking buyers and inflicting mass withdrawals of the token from defunct alternate FTX, wiping out the holdings of many FTX clients because the FTT value fell. The alternate quickly filed for chapter.

On uncommon events, cash whose values skyrocket inside a couple of days, like final yr’s notorious SQUID token, are sometimes linked to scams. The SQUID token rose from $0.01 to $3,000 in six days and crashed as builders disappeared with about $3.3 million in liquidity.

Tough yr for crypto shares

It’s been a troublesome yr for crypto-related shares. Shares of MicroStrategy, the biggest company holder of Bitcoin with over 130,000 BTC on its stability sheet, are down nearly 70% year-to-date at $170.12, whereas shares of Coinbase, the biggest crypto alternate within the U.S., are down about 80% YTD to commerce at $45.44.

The latter reported a lack of $540 million for Q3, 2022, which was its third straight quarter of losses because it battles falling buying and selling revenues.

For BeInCrypto’s newest Bitcoin (BTC) evaluation, click on right here.

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