Millennials Outsmart Wallstreet - CRYPTO FRIDAY
Hey DEFI TIMES community,
On Reddit, you can visit a sub-Reddit called "wallstreetbets." It is a place where people talk about the stock market and option trading.
The people in the forum identified GameStop as an undervalued investment opportunity approximately 18 months ago. They built a significant long position on it while well-known wall street investors (Citron Research, Melvin Capital) kept shorting GameStop. More than 120% of the stock was lent short at some point.
Even Michael Bury, known for the movie "The Big Short," also built a hefty long position on GameStop. The tension continued to become more intense, and then it happened: Reddit users pumped the stock to the moon. It rose from $30 to more than $300 within just a few days.
The news went viral. Even Elon Musk tweeted about it!
Absolutely mind-blowing! Retail investor completely outplayed Wallstreet on this one! The internet has removed a lot of barriers for retails investors. Pretty much anyone can access any information on the internet. Open communities on Reddit enable people to leverage the wisdom of the crowd!
Combine open communities with aggressive traders, and you beat Wallstreet!
Never bet against the internet!
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All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.
Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.