The Reddit supremo opined that “it is important to protect online communities like WallStreetBets.” The WallStreetBets subreddit has been one of the most active communities on Reddit for months, and was the epicenter of the unprecedented pump on GameStop shares – a move that shook Wall Street to the core. Huffman, meanwhile, jumped to his social media platform’s defense in his own testimony – and that of its users. Sounds similar to what hoards of crypto traders are doing every day, or more or less 24/7. And in a year of quarantines and COVID, engaging with other investors on social media was a safe way to socialize. “Social media platforms like YouTube, Twitter and WallStreetBets on Reddit are leveling the playing field. Hedge funds and other Wall Street firms have teams of analysts working together to compile research and critique investment ideas, while individual investors have not had that advantage.” “The idea that I used social media to promote GameStop stock to unwitting investors is preposterous. He also defended his own bullish and outspoken social media activities, claiming, Instigator-in-chief Roaring Kitty (real name Keith Gill) is also set to testify and in prepared testimony, he spoke out in defense of the trade, stating that the committee would be better off investigating Wall Street’s “potentially manipulative shorting practices.” Indeed, prepared statements show little in the way of remorse, indicating that many of the key players are unbent going into the hearing – and still have Wall Street locked in their crosshairs. So much of a circus, in fact, that it may end up becoming a scene in the forthcoming WallStreetBets-themed movie. “Tomorrow’s hearing is going to be a circus and I, for one, am going to be glued to my screen.” Meltem Demirors, Chief Strategy Officer at CoinShares, appeared set to grab the popcorn in anticipation of the hearing, calling the testimony “truly, a fine work of performance art,” and tweeting, Wall Street managers have accused r/WallStreetBets, a Reddit community, or "subreddit," and others of what amounts to “market manipulation.”
Social media-related activities have also seen the prices of tokens like the meme-themed DOGE token skyrocket, as some investors attempt to turn the tides of volatility in their favor. In a virtual hearing of the House’s Financial Committee entitled Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide, a number of the saga’s key players will make their voices heard, including Reddit’s CEO and co-founder Steve Huffman and the under-fire Robinhood CEO Vlad Tenev, whose firm is also suspected of hoarding a 28% share in the runaway dogecoin (DOGE) token.
The GameStop (GME) saga is set to take another twist as a trader prepares to tell the American House of Representatives that social media has allowed retail traders to leveling the playing field with their bitter Wall Street rivals, a strategy that is also coming good for thousands of crypto investors in the locked-down world of the coronavirus pandemic.
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