Reddit CEO Steve Huffman, Robinhood co-CEO Vlad Tenev, and Keith Gill (aka Roaring Kitty) are all on the witness listing for an upcoming listening to earlier than the Home Monetary Companies Committee, in keeping with a release from Chairwoman Maxine Waters (D-CA). The listening to, to be performed just about, will probe the latest volatility in shares of GameStop following a rally fueled by a gaggle of day merchants energetic on the r/WallStreetBets Reddit board.
Over a two-week interval that started final month, GameStop’s inventory (GME) skyrocketed by 500 p.c, hitting a excessive of $483 on January twenty eighth. Several government entities are now looking into whether or not there was market manipulation concerned, and whether or not Robinhood and different brokerages that quickly restricted buying and selling of GME had been in compliance with federal laws.
According to The New York Times, after Gill invested $53,000 in GME in 2019, he started tweeting and posting movies concerning the inventory; following the Reddit rollercoaster final month his authentic funding is now value round $48 million.
The Senate Committee on Banking additionally plans to hold a hearing into the “present state of the inventory market.” The Home listening to, which has the catchy title “Recreation Stopped? Who Wins and Loses When Quick Sellers, Social Media, and Retail Buyers Collide,” will stream live on its website starting at 12PM ET on February 18th.