In January 2021, a group of anonymous traders on Reddit took on a group of Wall Street hedge funds at a game of high-stakes betting in the stock market (re: GameStop saga). The popular narrative says the Reddit traders won.<\/p>\n
However, there's emerging evidence suggesting the GameStop saga wasn't as clear cut as hedge funds vs retail traders. In fact, many large institutions made big money as well.<\/p>\n
The Wall Street 'bad guys' lost billions of dollars. People around the world cheered that David had defeated Goliath.<\/p>\n
Inspired by these events, another group of traders proposed another coordinated 'buy and hold' this time for the cryptocurrency XRP (commonly called Ripple). The target date: 1 February 2021, 8:30am.<\/p>\n
The XRP price surged. It went up almost 300% in the week before 1 February. And then at 6am, two-and-half hours before people were supposed to buy together, the price started dropping. Right on cue at 8:30am, it crashed.<\/p>\n
XRP's price lost 49% on that day leaving buyers who'd hoped for quick riches in tears. I'm fairly certain now the coordinated 'buy and hold' was actually assholes pulling off a pump and dump.<\/p>\n
Two stories, wildly different. But from questions I was being asked right before 1 February, I realise many people actually thought the GameStop and XRP situations were very similar.<\/p>\n
Perhaps the organisers purposely misrepresented it as the same thing large groups of common people FIGHTING against the establishment.<\/p>\n
But in GameStop, the opponents were (supposedly) evil hedge funds. In XRP, the 'opponents' were actually their fellow investors.<\/p>\n
It was a very different situation, but you might not have realised it unless you have experience trading.<\/p>\n
Gambling is when you don't know what you're doing with your money, but still hope to profit.<\/p>\n
<\/p>\n
The rest is here: <\/p>\n
What's The Difference Between Gambling And Investing? - SAYS<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" In January 2021, a group of anonymous traders on Reddit took on a group of Wall Street hedge funds at a game of high-stakes betting in the stock market (re: GameStop saga). The popular narrative says the Reddit traders won. Continue reading