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I've watched meme coins and similar "hivemind" investing happen in the cryptocurrency currency world for years. When GME hit the fan, I couldn't help but feel

by phire 6y ago

I've watched meme coins and similar "hivemind" investing happen in the cryptocurrency currency world for years. When GME hit the fan, I couldn't help but feel how familiar it felt. The cricle was completed when I saw a "if we can drive up the price of GME/AMC with memes, then we can drive up the price of dogecoin -- Buy and HOLD until it reaches $1" appear on near the top of /r/all. It's not a hivemind mistake. The hivemind seems to create a cycle of individual victims who buy and then once they are invested, they quickly realize how the cycle works and that they need to meme and hype to maintain the price so they can get their investment out. Sure there are many people who just invest for the meme, but so many fresh people get dragged along who think this is a sure way to make some money. Then there are also people who have seen it all before and think they can outsmart the mob to make a profit. Many of them do make a profit. And that's before we even start to consider the people who actively try to stear the hivemind towards new investment (that they have pre-bought)

Dma54rhs 6y ago
The question is why reddit doesn't do anything about it and amplify this message? Awful lot of people lose so much money because of it, they need to hold reddit accountable as well by creating these situations.
- thinkingemote 6y ago
  One answer to this question would be to explore who this "Reddit" is. The company, the admins, the users, the moderators, the owners, etc etc
- pjc50 6y ago
  Reddit are still processing the problems of free speech, which includes allowing others to defraud people on your platform.
- phire 6y ago
  It's not really reddit's job. But I wouldn't be surprised if the SEC decides to ban "meme stock hyping". Their mandate includes insuring that value of shares accurately reflects the value of the company and that investors remain confident in the function of the market. This situation is damaging both those mandates, especially once GME fully crashes and all the noob investors who bought the peek lose their investment and decide to never invest again. Before anyone replies saying that the SEC should instead be focused on hedge fund market manipulation, I'll point out that's already against the rules and it's just an issue of enforcement. And I assure you that the SEC are going to have an even harder time enforcing any rules against "meme stock hyping"

by phire 6y ago

Dma54rhs 6y ago

The question is why reddit doesn't do anything about it and amplify this message? Awful lot of people lose so much money because of it, they need to hold reddit accountable as well by creating these situations.

thinkingemote 6y ago
One answer to this question would be to explore who this "Reddit" is. The company, the admins, the users, the moderators, the owners, etc etc
pjc50 6y ago
Reddit are still processing the problems of free speech, which includes allowing others to defraud people on your platform.
phire 6y ago
It's not really reddit's job. But I wouldn't be surprised if the SEC decides to ban "meme stock hyping". Their mandate includes insuring that value of shares accurately reflects the value of the company and that investors remain confident in the function of the market. This situation is damaging both those mandates, especially once GME fully crashes and all the noob investors who bought the peek lose their investment and decide to never invest again. Before anyone replies saying that the SEC should instead be focused on hedge fund market manipulation, I'll point out that's already against the rules and it's just an issue of enforcement. And I assure you that the SEC are going to have an even harder time enforcing any rules against "meme stock hyping"