Rogozinski states that the situation is unprecedented. He added that new forces are still unknown globally, and social networks play an essential role in unleashing these forces.
Jaime Rogozinski talked about the phenomenon from his home in New Mexico, where he leads a quiet life with his wife and twin children. Rogozinski watches the event as a big clash of two massive trains that could forever change the ways of the United States stock market.
The description that the Reddit sub-forum founder, WallStreetBets gave, brought to the current conflict between the large companies of Wall Street and a group of minority investors on Reddit.
Rogozinski founded WallStreetBets nine years ago, intending to forge a community where young people can share information on investing in the stock market. In an interview with CNN, the creator pointed out that although he predicted the trajectory of the group he had created, he never thought that this forum would escalate to that point and generate such repercussions in the stock market.
Perhaps the Most Unusual Events that have Ever Happened in the New York Stock Exchange
The members of WallStreetBets are facing one of the most unusual events that had ever occurred in the New York Stock Exchange. They produced a rally for the video game store chain’s shares, GameStop, and have caused large companies – such as Melvin Capital— to lose millions of dollars.
For Rogozinski, this entire stock market phenomenon is something he had never experienced before. However, he believes that it is the “collision of a system that is not behaving in the way it commonly behaves.” Rogozinski notes that introducing new forces to the stock market, such as social media and minority investors, changes the traditional ways that rule over the Stock Market.
WallStreetBets seems to attach to the idea of ”democratization of the stock market.” When companies like Robinhood opted for a restriction to GameStop shares, the Reddit forum got alarmed and labeled it market manipulation.
Through a letter, these investors argued an “outstanding debt” with the citizens from the risk investment funds since the great financial crisis of 2008. A turning point that also rocketed to the skies the essence of Bitcoin, thus the new decentralized financial market shaped in recent years around cryptocurrencies.
A Chain Reaction that Will Affect the Crypto-Environment
Although Rogozinsky did not elaborate many arguments about this issue, nor about the repercussions that he believes this movement may have, he keeps standing in his position about how this chain reaction will affect everyone.
The White House, during this conflict and the statements about the GameStop case, pointed out that the whole situation of Redditors and Wall Street will get caught at the hands of regulators very soon.
Rogozinski acknowledges that some people could lose money during all this stock market movement, but he also claims that it is like this. Meanwhile, social networks mock (with memes).
Like Melvin Capital, the multimillion-dollar firms are not the American middle class losing a lot of money this time. In this regard, the movement received a massive acceptance and gained many followers.
By: Jenson Nuñez
