Popular cryptocurrency derivatives trading platform has launched a WallStreetBets (WSB) index quarterly futures contract to capitalize on the retail trading fervor that has been growing over the last few days.
Earlier this month, traders from the popular WallStreetBets subreddit piled into GameStop after activist investor and Chewy Inc Ryan Cohen joined its board, and in a bid to fight back against huge levels of short interest that were holding at about 140% of the float. Shorts bets by firms including Melvin Capital and Citron Research are facing a short squeeze.
The price of GameStop (NYSE: GME) has surged from about $17.7 at the beginning of the year to over $193 at market close. The stock has since risen to $385 in pre-market trading as traders keep encouraging each other to keep betting on the company.
The retail trading surge saw an account that’s not associated with WallStreetBets on Twitter asked whether Dogecoin had been to $1, leading to a surge in retail interest for DOGE. The price of DOGE has, as reported, surged over 500% on the activity, with trading volumes, Twitter mentions, and price hitting a new all-time high.
FTX’s WSB futures contracts are made up of a basket of stocks being targeted by the Reddit trading group, including Nokia (NOK), BlackBerry (BB), EMC Entertainment (AMC), GameStop (GME), and Dogecoin itself.
The stocks and DOGE comprise 99% of the index, with FTX’s FTT token account for 1%. The listing comes as the trading frenzy orchestrated by the group is gaining widespread support targeting short-sellers.
CoinDesk has quoted FTX’s CEO, Sam Bankman-Fried, as saying that “WSB-related stocks” have been some of the platform’s most requested stocks. He added:
There’s a ton of interest in trading WSB related stocks and [cryptos] right now … the fact that many platforms are having trouble offering them is creating more demand.
Various trading platforms have been under pressure over the last few days, as trading volumes skyrocketed and the prices of targeted assets are fluctuating wildly.
Featured image via Pixabay.