Everyone who’s even from another location thinking about investing and trading is absolutely familiar with the GameStop saga. It was an event that shook the financial community to a degree that we had not seen before.
It all started on a subreddit called WallStreetBets, which went on to become one of the most popular subreddits out there, harboring over 10 million users.
CryptoPotato had the enjoyment of speaking to its Founder – – Jaime Rogozinski. In this interview, we speak about WSB’s past, present, future, in addition to what we can expect going forward.
What Kind of Person Does it Take to Create WallStreetBets? While growing in appeal earlier in January, WallStreetBets was in fact created over 10 years ago. As easy as it is to take the neighborhood for approved as it is right now, there was a time when it wasn’t so simple to discover people to talk about trading and investments to.
We had an interest in the type of person it requires to produce a neighborhood of this kind. He told us that he is an entrepreneur at hand with a background in computer technology. He stated that he established a couple of effective business, along with a few unsuccessful ones, similar to the path of other self-propelling business owners.
Jaime Rogozinski, WSB Founder. Image by: Bloomberg However, his curiosity pushed him to figure out how to put his” non reusable earnings “to work and
to grow it. As I started finding out about the stock market and, specifically, ETFs, I’m discussing the artificial, leveraged, unique variety – – the actually fancy things that sort of blew my mind, I needed to know how these things exist, and how are they even legal?
He said they offer traders huge chances, offering an example of shorting a stock – – if you wish to do it traditionally, you ‘d have to meet margin requirements. However, you could also buy shares of an inverse ETP, which would offload the dangers to another person.
In essence, it was his enthusiasm for comprehending how these things work that pressed him into beginning a community where they might discuss it.
I wanted to start a community where we can discuss how these things work and explain a few of the absurdities that exist in the market and begin an intriguing discussion.
Being totally honest, he also stated that he never ever expected the growth that WSB saw. He also exposed that at the start, it was simply him who began as a hobby. Later, as it began growing, he got more moderators to get involved.
The GameStop Saga Through the Eyes of Rogozinski
While it might have appeared like a random pick off the beginning to the eyes of those who had not been following WSB before that, Rogozinski told us that:
“Throughout the years of WSB, there’s been these meme stocks going to style. Years ago there were a lot of individuals that were into AMD, Tesla, and Apple, and Google – – it simply sort of keeps changing – – this was 5 years back and individuals kept selecting different ones. There is sort of a pattern regarding which stocks get selected. It’s oftentimes stocks that are concrete and people can feel and associate with.”
He exposed that for the many part, it’s a community-driven effort and stocks tend to go viral just like a video on social media would.
With GameStop particularly, we have a person, Keith Gill, who passes Roaring Kitty on YouTube. He had this enthusiasm for GameStop – – he really liked it, he’s a player. He’s likewise a clever expert, he understands the stock – – he’s been pounding and he had his own financial investment in this well prior to this year.
GameStop particularly had properties that made it vulnerable to the short squeeze and the type of relocation that we saw.
Rogozinski stated that there were multiple parts involved in the surge of GameStop, and as it began getting mass media attention, it was like “including fuel to the fire.”
The GME Aftermath
As the stock began getting steam, major trading platforms (such as Robinhood) stopped trading pointing out different concerns. Nasdaq’s CEO even stated they may think about halting trading of a stock in case of increased social networks chatter.
Prefaced with financier security issues, this entire thing left a sour taste in the mouth of lots of retail financiers, leaving lots of people with the sensation that ‘the huge men’ won as soon as again.
Speaking on the matter and why brokers had to limit trading, Rogozinski said:
“… … all of it related to this archaic back-end system that’s been around considering that stock trading dealt with passing certificates on a horseback throughout Manhattan.”
Yet, he pointed out that one of the good things that came out of the whole experience was the attention towards the system.
Crypto, Bitcoin, and WallstreetBets
The cryptocurrency community reacted highly to the whole thing, and the majority of it was overwhelmingly favorable.
Jaime confessed that he was especially surprised and excited about the reaction.
I think there was this sensation of empowerment for the little man, which is a nice story. The real reality is that it’s black and white. There’s no little man and huge man, it’s all quite interconnected and we can co-exist, and it’s quite cool that now the little guys have discovered a way to actually voice their viewpoint and kind of voice their opinion and take control over their circumstance.
Rogozinski stated that he has actually been following crypto because he started. He even stated that he tried to buy some bitcoin in its early days, but he quit since there was no intuitive way to do so. Yet, he continued following it from an academic standpoint, thinking that it’s truly well considered from both financial and technical point of views.
He revealed that he took a deep dive into the industry just recently which he is sorry for refraining from doing so earlier.
Advancing his participation in the industry, Rogozinski is now developing the WSB DApp – – a community-owned and operated decentralized version of the WSB subreddit. The WSB DAO of the application is planned to freely motivate the complimentary circulation of public information and viewpoint, changing them into actionable outcomes.
Jaime speaks in essence about the app, in addition to other interesting things, so make sure to remain tuned and take a look at the video interview!