[출처: WSB]
In December, the SEC sued Ripple on suspicion of selling unregistered securities, and the first surge occurred since XRP plunged. According to CoinMarketCap, a cryptocurrency information site, the price of XRP on January 31st (Korean time) soared by 50% in one day. Foreign media predicted that the cause of this XRP surge is the Wall Street Betz (WSB), which led the increase in gamestop prices.
#’XRP pumping D-Day’s surge in news at 10:30 pm Korean time
Earlier, XRP showed signs of a surge from January 30, arousing interest from investors. At the time, the reason for the surge was the change of the chairman of the SEC (US Securities and Exchange Commission) and the release of legal documents to respond to the SEC lawsuit by Ripple.
However, according to foreign media, the price increased as XRP was mentioned on WSB, the subchannel of Reddit, the largest community site in the United States, from around the 30th. WSB is a place that has been pointed out as a source of opposition to the GameStop short selling. Since then, this channel has been targeting events other than GameStop, and the situation continues to grow. In recent years, recognition is expanding to raw materials and virtual assets. WSB has already made the price soar by pointing to Bitcoin and Dogecoin.
In this process, XRP was also talked about in WSB, and a separate telegram room was created. According to the Telegram room, the timing of XRP group purchases is 10:30 pm (KST) on February 1st. As the news spread, it seems that the price surge occurred as investors bought XRP in advance. XRP, which was $0.26 as of January 29th, soared to $0.52 on January 30th. It is currently at the $0.48 mark.
# “The investor is responsible for the loss of investment”… Some people even voice their concerns
2As of 10 am, more than 200,000 people are participating in this Telegram room, which announced the purchase of XRP at 10:30 pm on January 1st. A previous notice stated, “You have entered this group at your own risk. XRP and other cryptocurrency investments are very risky. It also states that you are responsible for any lost investment.”
As a result, some of the community has voiced concerns about the WSB movement. It is said that short selling is moving toward promoting group buying for no reason, breaking away from the existing purpose of’revolt against unfair short selling’.
There is also a view that the group that suffers from the war on the short selling of hedge funds is likely to eventually become an individual investor. Regarding this, New Yorker, a famous YouTuber who works at the Wall Street hedge fund, said, “You will know when the whole situation is over, but I am concerned about the emotional response of individual investors. There is a phenomenon that even small-cap stocks that have nothing to do with short selling are entering and raising the stock price. Also, the group that has benefited the most from the soaring process is becoming an institution rather than an individual. After the soaring, new short sales are also accumulating, so in the end, it is not the institution that suffers damage in the end.”
Parker’s note Short selling is a bad thing to get rid of… The essence is’unfair’
Futures are a financial instrument that has emerged in the process of preventing this because the price volatility is so severe due to the storm of crops. As originally intended, short buying and short selling, including futures, are still useful tools to hedge on price volatility even today. However, because the system is unfair, complaints are emerging.
However, looking at the recent trend, there is a situation where the concerns of the institutional rights are also rising. There is a trend that goes beyond’rebellion against unfair short selling’ to the view that’short selling itself is evil’. There is even a movement to encourage group buying of small-cap stocks for simple price pumping regardless of short selling.
In particular, in the cryptocurrency market, unlike the institutional financial market, short selling in the unregulated zone is still open to individual investors. If WSB’s goal is to’eliminate unfair institutional short selling’, then the group buying of cryptocurrency is out of focus.
Reporter Park Sanghyuk [email protected]