The interest around r/wallstreetbets on Reddit and the counter short squeeze on GameStop the community is making go viral continues. The subreddit has now grown to over 6 million members and continues to add thousands of members by the hour.
As I wrote in the previous issue of the iAfrikan Daily Brief, this "moment in history will go down as a time when a stock, GameStop, stopped being just a stock, but a MEME that went viral."
This is proving true and extending to other stocks and cryptocurrencies too.
The English dictionary defines a meme as:
"a cultural item that is transmitted by repetition, replication, and imitation in a manner analogous to the biological transmission of genes."
...and this is exactly what we are observing since GameStop went viral. Many people have jumped on the bandwagon of buying GameStop shares purely by imitation without understanding the underlying fundamentals of why the trade made sense in the first place. Exactly like a meme (photo, video), some don't even care about the history of the trade but just the immediate gratification it provides either through laughing at the hedge funds or making a quick buck.
This has also transferred to cryptocurrencies whereby because Elon Musk added #Bitcoin to his Twitter bio, many people are buying it. The same applies to when he tweeted a photo of what looked like a magazine cover titled "DOGUE" with a dog on the cover - many people took this to mean that he is encouraging buying the DOGE coin cryptocurrency.
Other stocks like AMC and American Airlines and many others have been affected by this too as, like a meme, they simply went viral.
On one hand, you could view this as disturbing and that people could lose their money as they make decisions based on how viral something is. On the other hand, you have to ask the question - what gives something value?
The answer you'll likely reach is that we, humans, through consensus, give a thing value. Whether it be money (Rands, Naira, Kenyan Shillings), stocks, cryptocurrency, or anything for that matter.
It is ultimately we that give a thing value. So if we say a meme is worth $1,000, then the meme is worth $1,000.
Today's Top Stories
💰 The long-anticipated relaxation of the South African Exchange Control Rules relating to "loop" structures and investment was released on the 4th of January 2021. Here is everything you need to know. Link
💳 Nigeria's Sparkle, a mobile-first digital ecosystem providing financial, lifestyle, and business support services to Nigerians across the globe, has partnered with Network International to power its recently launched payment card offering. Link
📈 After recently killing and shutting down their Loon internet balloons project which was testing and piloting commercial viability in Kenya,Google (owned by Alphabet and basically one big company) has announced a $10 million grant (donation?) to Kenya's government. The announcement was made Sundar Pichai, Google's Chief Executive Officer, during a virtual meeting with President Uhuru Kenyatta of Kenya. Link
🎈 In case you missed it, here is Loon's obituary, sort of. Link
📱 Here is a comparison of WhatsApp, Telegram, and Signal to help you decide which one best meets your needs and requirements. Link
What gives something value? It is ultimately we, humans, through consensus, that give a thing value. So if we say a meme/stock/rock is worth $1,000, then it is worth $1,000. (Tweet this | Share on WhatsApp)
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