GME stock price rises nearly 100% in the past couple of hours after Melvin Capital, a hedge fund closeout of its GameStop position
Amid the stock surge, a DeFi developer develops a tokenized GME or wrapped GME and the crypto space jumped into action
How Did GME Stock Surge Massively?
Wall Street’s eyes were on stalks when the GME stock price rose like a giant within a very short span of time. According to some reports, Melvin Capital closed its GameStop short position after targeted by a Reddit board.
Post to the closing, the stock price rose mercilessly and hit the highs nearly 200%. Reports indicate that the tweet from Elon Musk with the Reddit group discussions.
As per some reports, GameStop has more than 138% of its float shares sold short which is the single most shorted name in the US stock market.
Tokenised GME Appears Within No Time
In the middle of the GME stock explosion, a DeFi developer created a wrapped GameStop, an ERC-20 token with a total supply of 20 million tokens. Etherscan recorded as many as 300 transactions and Uniswap interface also recorded an accelerated GME trading.
As per the information mentioned, the GME is an ERC-20 token which means it exists on the Ethereum blockchain and backed by another asset. But according to Derek Barrera, CTO at Proof of Impact, the token will soon be rugged and hence asked to stay away.
In the meantime, many more people just aped into it thinking probably that the asset is related to the GME stock price.