STONKS STOCKS & CRYPTOCURRENCY

Coinmama

In the financial market, there are stocks, and many people are familiar with the world. Simply
put, they are assets that represent a fraction of your ownership of a corporation. However, not
everyone knows stonks. This article sheds more light on this.

It is essential to know the latest language terms with the vast development of new internet words.
The word STONKS, similar to the spelling of stocks, is slang that describes poor financial
decisions.


HISTORY OF STONKS


When you see stonks in a write-up or discussion, some words must be attached to them. It
includes Reddit, GameStop, Twitter, Elon Musk, to the moon, etc. These words are like jelly and
peanut butter.

STONKS; WHAT IS THE MEANING?

The word STONKS came from the intentional incorrect spelling of STOCKS, used by Redditors
to make fun of a particular stock in the financial market not performing well or to explain poor
trading decisions embarked by traders, often resulting in a loss. It is a popular word associated
with Dogecoin that came into existence because of an intentional misspelling of the Shiba Dog.
DOGE and STONK are meme tokens that make fun of financial activities in the stock market
and cryptocurrency world, respectively.

Stonk has existed since 2017 as an internet stock meme. It has been on the lips of almost every
religious trader ever since. It resurfaced back to the internet with a conversational image of a
man begging his ex back and accidentally sent a stonk meme leaked. It prompted a lot of
responses and remakes, with an Elon Musk remake taking the win.

THE STONK MEME; WHAT IT IS, AND BRIEF HISTORY

Every active internet user must have come across a 3D floating man with a smooth, bald
facsimile head placed in front of price charts images. If yes, then that is the Meme man or Stonk
Guy. Behind him is a stock market graph with a large arrow pointing upwards (meaning, to the
moon).

According to statistics provided by know your meme, the use of the stonk guy face started from a
Facebook page called Special Meme, posted on 5th June 2017. This meme gained a new fandom
on Reddit the following month before spreading aggressively to other social media platforms.
The meme was created and popularized by the great John ‘Jack” Bogle, who died at 89 years.
His company, Vanguard, has witnessed explosive growth over the years as investors have
collectively poured in over 500 billion dollars, making it one of the fastest-growing assets
management companies of all time. One can say the power of meme creation and its
publicization is underrated.

WHAT MADE STONKS?

Luckily for the members of the subreddit group, they got a clue of what was going and decided
to liquidate their positions. Thus, causing a loss to many investor’s portfolios.
Due to the newfound interest in GameStop shares, in August/September 2020, the stocks
returned an interest rate of 63% and 53%, respectively. Within that time, GameStop moved from
an initial price of $4 to $11. The institutional companies piled in more funds to counter-attack
this growth, yet GameStop went to $20 at the end of December.

Look at the following words, i.e., GameStop, AMC, Reddit, Wallstreetbets, Elon Musk; does that
ring a bell? If not, try connecting the dots? Still unsuccessful, here is a more simplified function.
In September 2019, a profound member of the popular subreddit group, Wallstreetbets, saw a
potential goldmine in GameStop (GME). Before the observation, many institutional players
acquired some substantial amounts of GME.

The growth continued tremendously and eventually drove the figures into triple digits at the end
of January, causing various hedge funds to close their short position. For instance, Citadel and
Point27 were part of the hedge funds with an investment value of over 2 billion dollars.
On January 28, GameStop had an all-time high value of $460 on Robinhood. It caused
Robinhood to stop the purchase of any GameStop-related stocks and shares. This action caused a
massive uproar all over the world, leading to congressional hearings and investigations.

STONKS STOCKS: DO THEY ONLY GO TO THE MOON? LESSONS TO

LEARN FROM IT
The incidence surrounding stonks is something different and phenomenal, but what can it teach
others? Do Stonks always go to the moon?

The stock market has had irregular price movements before Stonks. However, with stonks, it
showed that to combat the giant 1%, it took the combination of the minute efforts of the 99%.
Hype stocks like GameStop are similar to shitcoins in the cryptocurrency market. They are of
high risk, short-lived, and very unpredictable. They are regarded as pump and dump schemes and
stand as the direct opposite of what an ethical trader should practice.

According to conclusions made from experts about this financial incident, pouring in your all
into super-volatile stocks is not regarded as investing. Instead, it involves patience, consistency,
and a very watchful eye. Rather than short-term hype stock buying, intending traders should
consider long-term investing strategies such as a Roth IRA. These accounts invest the funds into
a broader market such as S&P 500 for long-term gains.

Although it is not an exciting experience, it has a far safer and better potential than collective
hype stock markets like AMC AND GameStop. This conclusion can be backed by judging the
current price of GameStop. From an all-time high value of almost $500, GME now sits around
$65 to $70. A decrease rate of over 50% as the attention and hype it once accrued has shifted to
another.

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