WallStreetBets coin tanks 90% after insider dumps holding • Hacker News Board

Re: WallStreetBets coin tanks 90% after insider dumps holding

#11

Post by dragontamer » Thu, May 04, 2023, 10:34 PM UTC

smcn wrote: post #9

xsmasher wrote: post #8

Earlier quoted context omitted.

In what way is this different than a pump and dump? You tout the stock and say it's going to 5x, 10x, whatever because of X. Then the suckers buy. Then you sell.

Well, it's different because of whatever X is. X is the reason why the idea can spread through the community. It needs to make sense on some fundamental level in order to get past the onslaught of ridicule that every stock and member is subjected to. If you say "ABC is going to increase 10x because it has a funny name" that obviously won't fly, but if you give a detailed account of why it is possible (this is called…

You mean like 'Save the stock market from big banks by buying GME?'

It was the biggest crock of $$$$ I've ever heard, no element of truth to it. But it meme'd really well.

Re: WallStreetBets coin tanks 90% after insider dumps holding

#12

Post by smcn » Thu, May 04, 2023, 10:45 PM UTC

dragontamer wrote: post #11

smcn wrote: post #9

Earlier quoted context omitted.

Well, it's different because of whatever X is. X is the reason why the idea can spread through the community. It needs to make sense on some fundamental level in order to get past the onslaught of ridicule that every stock and member is subjected to. If you say "ABC is going to increase 10x because it has a funny name" that obviously won't fly, but if you give a detailed account of why it is possible (this is called…

You mean like 'Save the stock market from big banks by buying GME?' It was the biggest crock of $$$$ I've ever heard, no element of truth to it. But it meme'd really well.

I don't think anyone was trying to save the stock market. The general vibe was more fire and brimstone.

Re: WallStreetBets coin tanks 90% after insider dumps holding

#13

Post by Havoc » Thu, May 04, 2023, 10:47 PM UTC

jqpabc123 wrote: post #2

Simple pump and dump --- crypto bros must be slow learners.

More like compulsive gamblers well aware of the con but betting they can get out in time

Re: WallStreetBets coin tanks 90% after insider dumps holding

#14

Post by im3w1l » Thu, May 04, 2023, 10:54 PM UTC

What's the relation between the coin and subreddit? Like I get that they share a name, but is it say endorsed on the sub itself? Endorsed by the mods? Is it popular among its users?

Re: WallStreetBets coin tanks 90% after insider dumps holding

#15

Post by UncleEntity » Thu, May 04, 2023, 11:23 PM UTC

smcn wrote: post #9

xsmasher wrote: post #8

Earlier quoted context omitted.

In what way is this different than a pump and dump? You tout the stock and say it's going to 5x, 10x, whatever because of X. Then the suckers buy. Then you sell.

Well, it's different because of whatever X is. X is the reason why the idea can spread through the community. It needs to make sense on some fundamental level in order to get past the onslaught of ridicule that every stock and member is subjected to. If you say "ABC is going to increase 10x because it has a funny name" that obviously won't fly, but if you give a detailed account of why it is possible (this is called…

You buy a stock, post some “open source intelligence” to convince people they should also buy the stock and sell your shares before eventually you run out of people to convince to buy and the stock returns to “market value”.

I’m no Wall Street guru but that doesn’t sound like a pump and dump scheme at all.

Some of the other stuff they do is kind of funny in a “some people just want to watch the world burn” kind of way.

Re: WallStreetBets coin tanks 90% after insider dumps holding

#16

Post by dragontamer » Thu, May 04, 2023, 11:33 PM UTC

smcn wrote: post #12

dragontamer wrote: post #11

Earlier quoted context omitted.

You mean like 'Save the stock market from big banks by buying GME?' It was the biggest crock of $$$$ I've ever heard, no element of truth to it. But it meme'd really well.

I don't think anyone was trying to save the stock market. The general vibe was more fire and brimstone.

They made up a story about how short sellers were ruining the stock market and then tried to say that punishing them would save the stock market.

Or am I wrong in my assessment? Then the crowds ate it up and GME mooned. The pumpers then dumped and RoaringKitty became a millionaire.

Re: WallStreetBets coin tanks 90% after insider dumps holding

#17

Post by smcn » Thu, May 04, 2023, 11:33 PM UTC

UncleEntity wrote: post #15

smcn wrote: post #9

Earlier quoted context omitted.

Well, it's different because of whatever X is. X is the reason why the idea can spread through the community. It needs to make sense on some fundamental level in order to get past the onslaught of ridicule that every stock and member is subjected to. If you say "ABC is going to increase 10x because it has a funny name" that obviously won't fly, but if you give a detailed account of why it is possible (this is called…

You buy a stock, post some “open source intelligence” to convince people they should also buy the stock and sell your shares before eventually you run out of people to convince to buy and the stock returns to “market value”. I’m no Wall Street guru but that doesn’t sound like a pump and dump scheme at all. Some of the other stuff they do is kind of funny in a “some people just want to watch the world burn” kind of wa…

People certainly try but I don't think the community gets the credit it deserves. While it is certainly true that the majority are not seasoned investors, there are plenty in there that are able to be dissenting voices to these obvious attempts and these voices are heard and do shut down the threads.

It's not easy to make up artificial reasons as you will be forced to provide evidence for your claims. You need a solid base to build your argument and you better believe that you'll be fact checked in very aggressive ways.

But you don't need an account to view WSB, you are able to go browse it right now and see that it's mostly just stock market/economic news.

Re: WallStreetBets coin tanks 90% after insider dumps holding

#18

Post by smcn » Thu, May 04, 2023, 11:39 PM UTC

dragontamer wrote: post #16

smcn wrote: post #12

Earlier quoted context omitted.

I don't think anyone was trying to save the stock market. The general vibe was more fire and brimstone.

They made up a story about how short sellers were ruining the stock market and then tried to say that punishing them would save the stock market. Or am I wrong in my assessment? Then the crowds ate it up and GME mooned. The pumpers then dumped and RoaringKitty became a millionaire.

Yes I'd say that you're wrong with that.

To start, it wasn't that short sellers were ruining the market. If you spent any time there, you'd see that they, too, short stocks.

Second, it definitely wasn't made up. GME was tremendously shorted. And there were more shares shorted than existed. This is not a unique phenomenon and is possible due to a concept called "naked shorting".

It also didn't stop going up because people pumping it stopped. They literally disabled the ability for people to buy more. That is what killed the momentum. https://www.cnbc.com/2021/01/28/robinhood-interactive-broker...

Re: WallStreetBets coin tanks 90% after insider dumps holding

#19

Post by dragontamer » Thu, May 04, 2023, 11:45 PM UTC

smcn wrote: post #18

dragontamer wrote: post #16

Earlier quoted context omitted.

They made up a story about how short sellers were ruining the stock market and then tried to say that punishing them would save the stock market. Or am I wrong in my assessment? Then the crowds ate it up and GME mooned. The pumpers then dumped and RoaringKitty became a millionaire.

Yes I'd say that you're wrong with that. To start, it wasn't that short sellers were ruining the market. If you spent any time there, you'd see that they, too, short stocks. Second, it definitely wasn't made up. GME was tremendously shorted. And there were more shares shorted than existed. This is not a unique phenomenon and is possible due to a concept called "naked shorting". It also didn't stop going up because pe…

Yeah, no one is going to change short selling rules any time soon because it's all jus t made up crap and rumors from WSB to pump GME.

Hate to break it to ya, but you're getting played of you actually think the problem here was short selling.

The problem is that skittery online retail can be so openly manipulated to believe such conspiracies and that this leads to the profits of the small leaders of the crowd.

Re: WallStreetBets coin tanks 90% after insider dumps holding

#20

Post by smcn » Thu, May 04, 2023, 11:52 PM UTC

dragontamer wrote: post #19

smcn wrote: post #18

Earlier quoted context omitted.

Yes I'd say that you're wrong with that. To start, it wasn't that short sellers were ruining the market. If you spent any time there, you'd see that they, too, short stocks. Second, it definitely wasn't made up. GME was tremendously shorted. And there were more shares shorted than existed. This is not a unique phenomenon and is possible due to a concept called "naked shorting". It also didn't stop going up because pe…

Yeah, no one is going to change short selling rules any time soon because it's all jus t made up crap and rumors from WSB to pump GME. Hate to break it to ya, but you're getting played of you actually think the problem here was short selling. The problem is that skittery online retail can be so openly manipulated to believe such conspiracies and that this leads to the profits of the small leaders of the crowd.

Nobody is trying to change short selling rules. Like I said, this wasn't a rebellion against short selling.

Also, this is all verifiable information. I'd encourage you to confirm what it is that I'm saying.

Benjamin Graham said that in the short term, the stock market is a voting machine, and in the long term a weighing machine. None of this is anything new. It's just the speed at which information travels that has changed.