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?? Private investors felt disadvantaged by the GameStop hype
?? Super-PAC as a “valve” for the public
?? Founders criticize misrepresentation
Political committee wants to strengthen the position of private investors
Even if many market participants did not have the online community Reddit and especially the sub-forum “WallStreetBets” on their screen, the platform gained massive popularity in January due to the GameStop hype that originated there. In response to shortsellers betting on falling prices for the video game retailer’s stock, private investors helped the stumbled share to unprecedented heights and thus set an example against the overwhelming power of institutional investors in the markets. Now users of the platform want to further strengthen the position of small investors in the financial markets – and have set up a political committee – a so-called Super Political Action Committee (Super-PAC) – as reported by “MarketWatch”. The initiative can support a political candidate who wants to assert their interests.
Giving retail investors a voice
The lobby group, which appears under the name “WeLikeTheStock.wtf”, sees private investors at a disadvantage compared to hedge funds, bankers, stock exchanges and trading platforms and now wants to express this injustice. “Small investors are annoyed. They want an outlet to send an unfiltered message to the world,” explains co-founder Chad Minnis to the finance portal. After Reddit users drove up stocks like GameStop and AMC, some trading providers like Robinhood and Trade Republic imposed trading restrictions on the stocks in question. At the height of the hype, Robinhood users could only buy one GameStop share and five options contracts a day, for which the company was heavily criticized by small investors. At the same time, trading was still open to major investors. “What happened at the end of January is unacceptable,” said Minnis.
Criticism of misrepresentations
Minnis founded the Super-PAC together with the day trader Christian Freed after they both developed a sense of community on forums such as the WallStreetBets community and were angry about the sometimes one-sided media coverage of the events. The users of the online community wochenlag were called “degenerates”, who were accused of having no investment knowledge, unlike large investors. “But we’ve already messed up the markets by becoming the first decentralized hedge fund,” Minnis told the New York Post. Thus the representation of the media does not coincide with what he has experienced.
In order to express its closeness to the Reddit community, the Super-PAC now wants to draw attention to itself in the media, as the founders announce on a Twitter account set up especially for this purpose: “Our goal is to have a full-page ad in the New York Times, with an illustration and news item created and selected by r / wallstreetbets. ”
Commitment to GameStop shareholder “Roaring Kitty”
Minnis and Freed submitted their application to the US Federal Election Commission, which regulates campaign financing in the US, on February 18. On the same day Keith Gill, who appears online under the pseudonym “Roaring Kitty” and is considered to be the origin of the GameStop hype, appeared before Congress to reveal his role in the price rally. “GameStop’s share price has increased [im Januar] maybe a bit taken over, but I’m more optimistic than ever about a possible turnaround, “said the retail investor, according to Business Insider.” In short, I like the stock, “explained Gill, referring to the community-known meme” We like the stock “, to which the name of the initiative by Minnis and Freed also refers. The three letters that follow the term are intended to express both the frustration of the community and the fact that the domain extension is for the The committee’s website was cheap. The founders there accept donations that can be made with cryptocurrencies in addition to the US dollar. In just a few weeks, the Super-PAC was able to receive support in the form of several thousand US dollars.
Finanzen.net editorial team
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