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WallStreetBets coin tanks 90% after insider dumps holding

51 points| haasted | 2 years ago |web3isgoinggreat.com

40 comments

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jqpabc123|2 years ago

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

dragontamer|2 years ago

WSB is the Reddit community where everyone openly admits to running with pump-and-dump schemes, with the hopes to not be the dumb bagholder at the end.

Its a legally grey zone IMO. Its not a traditional pump-and-dump scheme, but the effects are basically the same.

They choose a stock, somewhat at random to pump. They use WSB to communicate and coordinate when the pump occurs. The idea is to use a stock that has nostalgic value (Gamestop, AMC, BBBY), but is in dire straights.

A shorter term, tactical goal, is to often find highly shorted stocks and/or stocks with high options leverage to cause either a short-squeeze or gamma-squeeze event.

Its all public knowledge, legally and morally grey IMO. I wouldn't touch it personally, but obviously you get a whole bunch of pump-and-dumpers together in one location on the internet, they're all going to be competing for the same money on the same forum.

Havoc|2 years ago

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

yieldcrv|2 years ago

I cant wait to the part of the memecoin cycle where the yield farms pop up again

community provided liquidity thats is then locked? kind of perfect imo

there’s no reason anymore that a $600,000 sale tanks $50m asset by 90%, just a bad system design where there is no liquidity incentive

why even give nocoiners cannon fodder? just do the thing that already distributes the load well enough and fits the risk profile of enough people

klyrs|2 years ago

> why even give nocoiners cannon fodder?

Can't tell who you're asking this of, but as a nocoiner I gotta say it made me giggle... we invest in popcorn, not cannon.

im3w1l|2 years ago

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?