10 Feb 2021

Wallstreetbets’ Denial of Hedge-Funding Hack Could Slow DeFi Boom

Last month’s market anarchy, where two-million-plus (at the time), day-trading individual investors unleashed the peer-to-peer power of social media to crush some of Wall Street’s top hedge funds, may indicate a coming use of existing legislative and regulatory methods to not only mitigate the ability of small investors to disrupt market, but, according to our research, spell increased regulations for the world of decentralized finance (DeFi).

The ‘wallstreetbets’ forums on Reddit and Discord allegedly sparked the madness as mostly young investors pumped share prices in companies hedge funds has shorted (like video game retailer GameStop) over 1,625% last month. Market mania swept online message boards, as GenY and Z traders piled into online brokerages like Robinhood and TD Ameritrade en masse to squeeze institutional short sellers like a vice.

Read More