I think by now everybody knows the "Gamestop short squeeze" story. This is indeed a very interesting story (and the most interesting part seems untold yet). A company that was slowly dying for years because of shifts in its business environment. Some guys who managed to buy quite a few of the company's stocks and calls some time ago. A hedge fund that recently decided to short the company. A Reddit mob somehow ignited to pump the stock and squeeze the short. A weird trading app the Redditors used and which was backed by the same broker who backed the hedge-fund. The party was so great that even Mr. Musk decided to join it! Again, this is very interesting, but I will not go into details right now, but I'd like to note one thing: short selling per se can hardly kill a company. It can be done this way if e.g. the company uses its own stocks as credit collateral, or if someone buys so many cheap stocks as to get a vote on the company's affairs and initiates bankruptcy, and so on.
Anyway, the result was glorious! Not a few hailed Gamestop short squeeze as a triumph of ordinary people over the wolves of Wall-Street. Some even regarded it as a sign of the future triumph of crypto over the banksters of Wall-Street. Mr. Musk was so impressed as to mention BTC and push it up 20% within hours. The copycats went to pump DOGE, SNM, XRP, and some others. Well, you already know it, probably.
I've found it recently in a free "crypto-trading" Telegram channel that also sells "signals" and talks about whales, pumps, and dumps:
We will decide the value of coins and stocks, not a small group of people that control most of the money in the world. We will fight wall street together and we will have an upper hand.
Jolly good. But who exactly these "we" will be?
A pump&dump Telegram channel, some Reddit forum, Mr. Musk, and Youtube "influencers"? Though, theoretically, the more manipulators we have in the market, the better. It even doesn't matter if they're Wall-Street or Reddit manipulators, you win every time you managed to get at the right side (with Redditors it's simpler, though).
Or "we" are supposed to be "we the people"? Well, "we the people" are already given the right to decide many things (at least in so-called "democratic countries") -- and so what? Will "we the people" decide the price of some shitcoin any better? Or if DOGE is pumped to $100 apiece, everybody will become wealthier? Wow! Holy shit...
Maybe I'm way too pessimistic. Anyway, the latest GME/BTC/DOGE/etc. story just demonstrated one more time how the "crypto-market" actually works, its fun-damentals and meme-tization (I found these terms in someone else's post recently). Well, some smart guy said somewhere it's certainly good to know when to buy, but it's even better to know when to sell.
Some time ago I've seen an article by some popular "motivational guru". I don't remember his name right now, but though I normally don't think highly of any "motivational gurus", I must confess that guy was clearly way smarter than most of them. Actually, his article had nothing to do with crypto or Wall-Street, it was about the so-called "millennials and zoomers" and more specifically -- quite contrary to what the (Western) millennials and zoomers currently expect, believe in, and hope for, their life will probably be more toil and less reward compared to what their fathers and grandfathers had. I think the guy's reasoning has some truth -- the Y's and Z's fathers and grandfathers were lucky enough to ride the post-WWII and post-Depression wave of continuously growing prosperity (even though the 1960s-1970s was a quite turbulent time politically, economically, culturally, sociologically, scientifically, technologically, and so on). Now the wave is over, sorry. Or rather, the wave is not high and overall enough anymore to maintain the standards of living the Ys and Zs think they deserve because it's what they extrapolated for themselves from what their fathers and grandfathers got.
Recently I stumbled upon another article. A good article, actually. But again, I'm not going to discuss it here, except one short note:
A meme is an incredibly efficient way to communicate an idea. Gen Z is especially effective at communicating in Memes. It may baffle most boomers, but don't confuse the humor with not having a point. Memes are this generation's punk or hip-hop.
Well, meme (a 45 y.o. thing, btw) can indeed communicate an idea, and meme-tization is surely one of crypto's fun-damentals (maybe, the only one). But I doubt Sid Vicious ever dreamt an idea about buying a Lambo with speculating some shit.
Posted Using LeoFinance Beta