- WallStreetBets has led the fight against institutional investors.
- CoinMarketCap created a fake coin in honor of WallStreetBets’ contribution.
- Dogecoin and XRP prices rise after WallStreetBets’ support.
Reddit channel WallStreetBets started trending in the crypto-sphere after a new coin topped CoinMarketCap. The coin called WallStreetBets (WSB) had risen by over 130% in 24 hours and traded over $100 million in volume, to the shock of many.
However, CoinMarketCap later disclosed that this was only a joke. The prank, however, shows how much influence WSB holds. It rose to fame after successfully defending GameStop stock from an attack by institutional investors.
Before CoinMarketCap gave WSB its nod of approval, the Reddit channel had helped drive up Dogecoin and XRP prices. Thus, this has effectively taken the fight from Wall Street to the crypto sphere.
Over the years, there has been a strong theory that successful crypto adoption will only be possible with the help of institutional investors. Perhaps, the greatest role WSB has played is defying this ideology. After all, a group of single investors have managed to upset the financial industry by using their joint effort.
One victim of the short squeeze created by WSB is the mobile trading app Robinhood. The app had to remove trading limits on GameStop and other stocks after huge user backlash. Robinhood even had to raise $1 billion in emergency funds in order to cope with the Reddit-driven trading.
Yet some, like Nasdaq CEO Adena Friedman, have vowed to stop future WBS driven trading. And other critics have even called WSB traders criminals, yet some celebrate the traders as heroes. These traders simply used the big investors’ strategy against them, meaning if one strategy is illegal then so is the other.
Twitter user @Kruckenberg_Esq, a lawyer, tweeted, “If anyone gets a call from the SEC for their participation in #wallstreetbet please DM me. Destroying hedge funds at their own games is not illegal.
In conclusion, by bringing the fight to the crypto market, WBS exposed that what the industry lacks is not liquidity, but rather unity.