Reddit crypto pump

Bitcoin , ether and dogecoin reached record highs in value this year, cryptocurrency fans view them as the future of money for the globe. The underlying blockchain technology allows crypto to work by creating a digital ledger that records transactions, which would seemingly create a safer form of currency. But where there's money to be made, scammers aren't far behind. Crypto pump-and-dump schemes take advantage of people while making some big money for scammers. They can involve social media influencers who receive financial incentives for telling people to buy a certain digital coin in order to raise its value.

We are searching data for your request:

Wait the end of the search in all databases.
Upon completion, a link will appear to access the found materials.

Content:

• WallStreetBets, Source of GameStop Short Squeeze, Launches Crypto Subreddit
• Welcome to the stonk market
• Investing in cryptocurrency? Here are some crypto slang you need to know
• Could Cardano’s 'green' cryptocurrency ADA take over Bitcoin and Ethereum?
• What Reddit's Crypto Nerds Believe Is Happening Right Now
• Confused About Dogecoin? Here’s How It (Doesn’t) Work.
• WallStreetBets reinstates cryptocurrency ban as Dogecoin soars again
• Crypto scams are on the rise: 5 ways to avoid them
• Is Redditors' GameStop short squeeze a crypto-esque farce?

WATCH RELATED VIDEO: I tried the \

WallStreetBets, Source of GameStop Short Squeeze, Launches Crypto Subreddit

We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our audiences come from. To learn more or opt-out, read our Cookie Policy. If you buy something from a Verge link, Vox Media may earn a commission.

See our ethics statement. Most of the time on the job would be spent on Reddit, Twitter, and Discord, finding out what retail traders are up to. This listing actually made sense. So retail traders bought into stocks — not with the idea of making a long-term investment, but rather with the idea of quick money.

More sophisticated traders exploited market inefficiencies. Others just yoloed into the memes. And then, in January, the retail traders decided to flex : GameStop was so heavily shorted that the traders figured that if they all jumped in, they would drive the price up.

Much to the joy of the apes, hedge fund Melvin Capital lost 53 percent on its investments in January, largely due to the efforts of retail traders.

Another hedge fund that took big losses on GameStop shut down completely. AMC elected to yolo along with the retail investors, offering them free popcorn and announcing customers could buy sodas and other concessions with Bitcoin by the end of the year. There was also a pantsless Zoom. It has staved off bankruptcy, and its stock is up more than 1, percent this year, as of the close of market on October 29th.

And with the rise of retail investors has come a new class of investing influencers, of whom Elon Musk is the most influential. Many of them traded on platforms such as Robinhood, which offer free trades and fractional shares, making investing easier than before. The fire had been burning for a while — since the financial crisis, in fact.

And it had fuel before the pandemic, with mobile apps, free trades, out-of-the-money options, easily available information. Take NFTs. This is maybe the funniest part of financial nihilism. Most of the companies I just listed are backed by big-name venture capital firms, as was Robinhood. You can distrust, even hate, Wall Street as much as you want, but that just creates a new market for it to exploit. After all, among the big winners in the GameStock debacle was an investment firm that correctly called the top based on an Elon Musk tweet.

Who are these retail investors? Conveniently, Robinhood went public this year — thus giving us a picture of its users. An Australian millionaire blamed this on avocado toast. What about a younger Robinhood user? A year-old member of Gen Z may not remember all the scandals the older Millennial does, but their outlook is, if anything, grimmer. More than 80 percent of Gen Z survey participants said money was a major stress, and about a third of them identified personal debt as their main source of anxiety, according to a survey from the American Psychological Association.

Half of the Gen Z respondents 18 and older in a Pew survey reported someone in their household either lost their job or took a pay cut during the coronavirus pandemic. But when it was clear hedge funds were losing money, the vicious joy some investors felt clearly spoke to a pent-up sense of anger from , Rogozinski says.

Never mind that the GameStop rally made some ultra-rich people richer. The conspiracy theory is a useful window into the minds of these investors. They believe Wall Street has stacked the deck against them. Arguably the biggest influencer in finance is none other than Elon Musk, who, for years, has been rallying the faithful to Tesla stock through his Twitter account with the occasional go-private whoopsie along the way.

Musk has endorsed both the GameStonk fever dream and Dogecoin, as well as — somewhat more conditionally — Bitcoin. Any platform you name has investing influencers, such as Mrs. The chaotic behavior — buying a stock for fun or because someone who you know through social media has endorsed it — is not quite what economic theories predict; most are built on maximizing utility and happiness, says Joshua White, an assistant professor of finance and former financial economist for the SEC.

In some ways, the fandomization of finance was inevitable; fandom has consumed the political sphere already. The Bitcoin community has, for years, used memes and specialized vocabulary to reassure themselves and each other about their investments; the lingo binds the community together as insiders, says Swartz, who is also the author of New Money: How Payment Became Social Media.

The spam messages I get are probably blasted to everyone in the cryptocurrency, finance, and NFT Discords I hang out in. They seem to be an attempt to harness existing fan communities into get-rich-quick schemes. Perhaps naturally, every fandom acquires haters. Some — perhaps many — of these people are actively shorting Tesla. They even have their own research drones. Some of them just like fighting online. But the thing that holds them together is their sense of community; they are generous with each other.

Similarly, just as Bitcoin has its true believers, the Buttcoin community spends its time making fun of them. Fandom runs on emotion, so finance fandom means that the affective aspects of trading are front and center.

Emotions and instincts have always guided economic behavior; with retail investors forming communities, those emotions are likely to play an outsized role in the economy.

These groups have offline predecessors in investment clubs, which really took off in the s. In those clubs, retail investors pooled their money because they were too small to attract much broker attention; collectively, however, they were essentially a small mutual fund. Sometimes these groups were coworkers or friends — people who already had social ties. These clubs came into vogue as pensions became a thing of the past, and the risk of managing money for retirement fell on individuals.

Club members had a daunting task: predicting the future. What stocks would go up? Fandoms aside, retail investors today are even more likely to be overwhelmed by their options. Participating in an online community can even influence your identity. The identity of being an active investor, especially in the cryptocurrency space, is more important than returns.

So far, so similar to the s. Those platform dynamics may have an outsized influence on finance if retail trading stays strong. Take, for instance, push-notification arbitrage. So you get in at 4. This works because platforms such as Robinhood default to sending push alerts on price. These apps — and others like them — are the main way that retail investors interact with the stock market. The push notifications are a major, obvious way platform dynamics manifest for the newer, mobile-first apps.

In terms of notifications, Sofi is the least invasive of the bunch. The other trend across these apps is the simplicity of use — the experience is relatively frictionless. I barely realized I was agreeing to open a retirement account on Stash until it happened! They also create the illusion of near-instantaneous trading. In a world where the brokers are mobile-first applications, rather than people, platform effects have outsized influence. And the norms of startup behavior — as Robinhood users can attest — mean that the focus is often on building scale at the cost of stability.

Which means that apps can become so powerful that they influence markets. Coinbase, a trading platform by and for the wildly passionate cryptocurrency community, has reached such a scale that it can now move prices on cryptocurrencies simply by announcing it will list them , Byers says.

Still, with the memable stocks as the tip of the spear, fintech companies have been consolidating their services. They can point their large customer bases to their new products easily.

Some of this has already happened: Paypal and its subsidiary Venmo allow cryptocurrency trading, though they were originally built for sending payments.

Robinhood now has a cash management tool — which is similar to a savings account without the virtue of actually being one. The decentralized finance world has gotten increasingly sophisticated, and NFTs are just the beginning.

I am somewhat more skeptical, partly because cryptocurrency is notorious for scams and can be hard for beginners. But even DeFi follows the trend: the alternative to banks is now, apparently, trying to figure out banking. Charles Schwab, for instance, reported an 8 percent drop in retail trades between the second and third quarters of Robinhood itself, the meme brokerage, missed third quarter revenue estimates , as fewer people were trading cryptocurrencies. It also projected less trading in the fourth quarter than in the first half of this year.

Still, not everyone who got involved with retail trading is likely to drop out. Which makes me wonder what the finance influencers mean for regular banking, though.

Institutional and retail investors both make these mistakes , which are more likely when an unscheduled event — such as new company guidance or a Musk tweet — occurs. Perhaps next year, a fund will post a job ad, asking for an analyst who monitors influencers after someone makes a wild gamble based on an up-and-coming TikTok influencer, and rocket rocket heart eyes the fund to the moooooooon.

WAGMI, the hedge funds will say. Correction Nov. Cookie banner We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our audiences come from.

By choosing I Accept , you consent to our use of cookies and other tracking technologies. Filed under: Report. Linkedin Reddit Pocket Flipboard Email. Apple Epic largely lost to Apple, but 35 states are now backing its fight in a higher court.

Apps Life is getting out of the business of selling precise user location data. Share this story Twitter Facebook.

Welcome to the stonk market

The move was seen by many as inspired or at the very least similar in nature to the GameStop short-squeeze initiated by Reddit group WallStreetsBets in early As is common practice with almost all professional websites, our site uses cookies, which are tiny files that are downloaded to your device, to improve your experience. This document describes what information they gather, how we use it and why we sometimes need to store these cookies. We use cookies for a variety of reasons detailed below. Unfortunately, in most cases there are no industry standard options for disabling cookies without completely disabling the functionality and features they add to the site. It is recommended that you leave on all cookies if you are not sure whether you need them or not, in case they are used to provide a service that you use. Be aware that disabling cookies may affect the functionality of this and many other websites that you visit.

Investing in cryptocurrency? Here are some crypto slang you need to know

On their servers, traders discuss the latest on altcoins, investors share predictions, and scammers ponder how to cash in on both. We unpack the latest scheme and explain how not to fall for it. The scammers seek out victims on Discord cryptocurrency servers and send out private messages that appear to come from an up-and-coming trading platform giving away cryptocurrency. The reasons for such alleged generosity vary from message to message, but whether the exchange is supporting traders in difficult times or trying to attract new users, the thrust is always the same: The lucky addressee has been randomly chosen to receive an impressive payout in Bitcoin or Ethereum. The scam message promising free Ethereum looks something like this. The message, replete with emoji, contains detailed instructions and a code for accepting the gift, as well as a link for registering on the cryptocurrency exchange. The link opens a site that looks like a cryptocurrency exchange, with an adaptive layout, savvy design, and the exchange rate info, charts, order books , and trading history that cryptocurrency traders would expect to see on a trading platform.

Could Cardano’s 'green' cryptocurrency ADA take over Bitcoin and Ethereum?

On Thursday, the ban was reinstated , citing the deleterious effects of a Bloomberg article. I've read a lot of dumb articles written about wsb. This one takes the cake. The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group , which invests in cryptocurrencies and blockchain startups.

What Reddit's Crypto Nerds Believe Is Happening Right Now

Online trading apps are drawing in novice investors willing to risk everything on volatile stocks. It started in November , around the time of the US presidential election. She started reading about cryptocurrencies online, and the more she read, the more ads for trading platforms she was served on her social media feeds. Unlike listed stocks, bitcoin can be traded 24 hours a day. Flushed with success, she pulled her money out of bitcoin, downloaded the brokerage app Trading , and started investing in other cryptocurrencies and stocks: Ripple, a cryptocurrency and platform; companies that invest in the legal cannabis industry; psilocybin research brands; Beyond Meat, makers of plant-based meat substitutes; BioNTech, a German biotechnology company; businesses developing gene-editing technology and psychedelic medicine; and gold and silver.

Confused About Dogecoin? Here’s How It (Doesn’t) Work.

Dogecoin pending. Hey guys. In earlier versions, this time was set to hours. Till now the transaction still pending. February 24, Incoming transactions show up in your account almost instantly within a few seconds but will show as 'Pending' until there have been enough network confirmations. Dogecoin, which was created as a joke in by combining two of the buzziest things at the time -- crypto and a Shiba Inu dog What does pending mean?

WallStreetBets reinstates cryptocurrency ban as Dogecoin soars again

Telegram has a unique relationship with cryptocurrency, supporting pump and dump channels, legitimate trading signals channels, as well as news and discussion groups on the cryptocurrency market. Subscribers who are interested in crypto-related news, reviews, or token sales may find crypto-focused channels and groups to be extremely valuable. So many Telegram users are on the lookout for a solid channel or group that broadcasts valuable information while also screening out scammers, which is understandable.

Crypto scams are on the rise: 5 ways to avoid them

Subscriber Account active since. A cryptocurrency is a digital token that can be exchanged for goods and services. But many retail investors and institutions treat cryptos as investments instead of means of exchange, buying certain coins and hoping to sell them for a profit at a later date. Cryptocurrencies are speculative by nature.

Is Redditors' GameStop short squeeze a crypto-esque farce?

CTO at Coro Global Inc, the creators of CORO , a mobile payment app that combines gold with the world's most advanced and secure hashgraph distributed ledger technology. The building blocks of NFTs are designed to prevent forgery but not theft. So if someone steals an NFT, those building blocks — collectively known as the blockchain — simply record the activity. You can turn literally everything into NFTs, from digital artwork to tweets. Part of their allure is that they offer artists a way to keep the rights and royalties to their work once it enters the web. People are also treating them like speculative assets, where they purchase them in the hopes that their value increases over time. The references that define the original ownership of an NFT depend on URLs that could possibly disappear at some point.

Titan Maxamus has been there. There on the other side — as the mark. Titan Maxamus knows the game. All the brazenly cynical players do.