Considering multiple reports about the meteoric price increase of many commodities, which include stocks of GameStop (GME), AMC Entertainment (AMC), and Dogecoin (DOGE), an index preceding the assets has been mentioned by crypto exchange FTX. FTX called the index after Wall Street Bets, which was assumed to be connected with the pumping of these asset values by the Reddit group.
FTX now has a futures trading product inspired by Wall Street Bets-related asset prices, @benjaminpirus reports. https://t.co/xul4u53NKO — Cointelegraph (@Cointelegraph) January 29, 2021
FTX made a formal statement on Thursday:
“We’re happy to announce that we have launched trading for a basket of Wall Street Bets markets,”
With expiration on March 26, 2021, the index operates as a futures contract.
Cointelegraph asked Sam Bankman-Fried whether the commodity is just a short-term offer on FTX on which he replied it’s contingent. He further added:
“We’ll see. If there’s enough demand we’ll list Junes!”
Bankman-Fried also clarified that the futures contract for the WSB index is “cash settled vs the index of tokenized share markets on FTX.”
The Wall Street Bets index, or WSB, is formally traded underneath the WSB-0326 ticker. In the product summary on the exchange, FTX states.
“tracks the price of NOK, BB, AMC, GME, SLV, DOGE, and FTT using a weighed average of their prices,”
Apart from FTT, which has a value of just 1%, each asset price carries a weight of 16.5% in the basket. Combining the six properties along with a 16.5% weight and FTT with a 1% weight provides a sum of 100%.
The Reddit collective known as Wall Street Bets has allegedly operated over the past few days to boost costs for multiple stocks, along with GME and AMC, in the face of the attempts of larger companies to shorten those properties. The other day, in line with chatter from the party, DOGE also boosted tremendously.