Stocks Show 200% Rise ‘Crypto’

Shares of Grindr, an LGBTQ social media platform, rose more than 200% to around $40 on November 18, 2022, after the company merged with Tiga Acquisition Group in a deal valued at $2.1 billion.

Thus, Grindr stock price ended the trading day on November 17, 2022 at $11.63 and opened the session on November 18, 2022 at $17.00, rising 46.2% overnight.

The increase in the price of this stock was partly caused by the low volume of shares outstanding (500,000) and by the interest generated by the company. The stock has since fallen slightly to $36.50.

GRND/USD | Source: TradingView

Other stocks that posted strong gains on November 18, 2022 include PaxMedica, a pharmaceutical company that gained 36.8% in intraday trading to trade its shares at $2,135. There is also YTRA, a company specializing in travel, which recorded a 33% increase in intraday transactions to rise to $2.82.

Grindr’s stock surge is reminiscent of the early rallies of the same corners such as Dogecoin, whose price increases of 10,000% or more were not uncommon in 2021.

DOGE/USD | Source: Quinceco

Between January 27, 2021 and May 8, 2021, the DOGE crypto thus gained more than 10,000%, rising from $0.002 at the end of January 2022 to $0.68 at the beginning of May.

Dogecoin’s rise came as speculative investors flocked to cryptocurrencies during and after the Covid-19 pandemic. International deadlocks have resulted in record trading volumes, thanks to the efficient trading interfaces of companies like Robinhood Markets. Bloomberg also reported an increase of about 149% in the number of taxpayers who invested in cryptocurrencies in 2020 compared to 2019.

Dogecoin preceded another memecoin, shiba inus (SHIB), which also made gains of about 11,000% between the end of September 2021 and the end of October 2021.

RCH/USD | Source: Quinceco

of the same cornersor crypto memes, differ from other major cryptocurrencies in the industry because they offer little value or utility beyond speculation.

The DOGE course and Elon Musk’s tweets

The sensation of a high-profile influencer often drives share prices higher the same corners.

One can cite in particular the case of Dogecoinwhose price more or less followed bullish statements from new Twitter owner and Tesla CEO Elon Musk, whose tweets sent the asset up 20% in the space of a day.

On the other hand, the same negative sentiment from a celebrity can drive prices down, as seen when Binance CEO Changpeng Zhao tweeted that the exchange would sell its holdings in Crypto FTT and FTXwhich then amounted to 540 million dollars.

The FTT price then fell 76% on November 8, 2022, about two days after the tweet. Indeed, Changpeng Zhao’s message spooked investors and caused massive withdrawals of the token from the now-bankrupt FTX exchange, causing many of the exchange’s customers to lose their holdings as the price of FTT plummeted. FTX has since filed for bankruptcy.

Sometimes cryptocurrencies increase in value within days, such as misfortune mark SQUID of last year, are actually linked to fraud. Indeed, the SQUID token went from $0.01 to $3,000 in six days and then crashed sharply when the project’s developers disappeared with around $3.3 million in cash. cash.

A tough year for crypto assets

It’s been a rough year for crypto-related stocks. Shares of MicroStrategy, the largest bitcoin holding firm, which has over 130,000 BTC on its balance sheet, have indeed fallen nearly 70% year-to-date to $170.12. Meanwhile, shares of Coinbase, the largest crypto exchange in the United States, have fallen about 80% since the start of the year to trade at $45.44.

Coinbase reported a loss of $540 million for the third quarter of 2022, its third straight quarter of losses as the company struggles with declining trading revenue.

Disclaimer

All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at his own risk.

Leave a Comment