Shares of Grindr, an LGBTQ social media platform, rose more than 200% to about $40 on Nov. 18, 2022, following the company’s merger with Tiga Acquisition Group in a $2.1 billion deal.
Thus, Grindr’s share price ended the November 17, 2022 trading day at $11.63 and opened the November 18, 2022 session at $17.00, up 46.2% overnight. .
The increase in the price of this stock was partly due to the low number of shares outstanding (500,000) and the interest generated by the company. The stock has since dropped slightly to $36.50.
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 stock at $2,135. There’s also YTRA, a company that specializes in travel, which recorded a 33% increase in intraday trades to $2.82.
The rise in Grindr shares is reminiscent of the early rallies of memecoins like Dogecoin, whose price increases of 10,000% or more in 2021 were not uncommon.
Thus, between January 27, 2021 and May 8, 2021, the DOGE crypto gained more than 10,000%, 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 lockdowns have resulted in record trading volumes, thanks to the efficient trading interfaces of companies such as Robinhood Markets. Bloomberg reported about a 149% growth in the number of taxpayers investing in cryptocurrencies in 2020 compared to 2019.
Dogecoin preceded another memecoin, Shiba Inu (SHIB), which also gained about 11,000% between the end of September 2021 and the end of October 2021.
Meme coins, or crypto memes, differ from other major cryptocurrencies in the industry in that they offer little value or utility outside of speculation.
The DOGE course and Elon Musk’s tweets
The sentiment of well-known influencers often leads to price increases of even coins.
This includes the case of Dogecoin, whose price has more or less followed the bullish statements of new Twitter owner and Tesla CEO Elon Musk, whose tweets have caused the asset to rise by up to 20% in a period of time 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 will lose its holdings of FTX’s FTT crypto, then worth $540 million. to sell.
The FTT price then fell by 76% on November 8, 2022, about two days after the tweet. Indeed, Changpeng Zhao’s message terrified investors and triggered massive withdrawals of the token from the now-bankrupt FTX exchange, causing many of the exchange’s clients to lose their holdings as the price of FTT plummeted. FTX has since filed for bankruptcy.
Sometimes cryptocurrencies that skyrocket in value within days, like last year’s unfortunate SQUID token, are actually linked to fraud. Indeed, the SQUID token went from $0.01 to $3,000 in six days and then crashed sharply as the developers disappeared with about $3.3 million in cash.
A difficult year for crypto assets
It’s been a tough year for crypto-related stocks. Indeed, shares of MicroStrategy, the largest bitcoin holding company, which has more than 130,000 BTC on its balance sheet, are down nearly 70% to just $170.12. Meanwhile, shares of Coinbase, the largest crypto exchange in the United States, are down about 80% since the start of the year to trade at $45.44.
Coinbase reported a $540 million loss for the third quarter of 2022, its third straight quarter of losses as the company struggles with plummeting trading revenues.
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