Cuban believes WSB traders are applying the principles of the crypto world to the stock market.
Mark Cuban, the billionaire owner of the National Basketball Association’s Dallas Mavericks, informed old-school investors that Reddit WallStreetBets (WSB) traders, in his mind “the store of value generation,” are “kicking your ass.”
In a blog post published Sunday, Cuban said after watching the situation with the WSB traders unfold he believes they are applying the principles of the crypto world to the stock market.
Last week, the financial world and beyond looked on as an army of ordinary online investors, the WSB group, took on the power of big institutions by pumping the price of U.S. video game retailer GameStop’s (GME) stock to counter Wall Street hedge funds that were “shorting” or betting against it.
In his post, Cuban praised the new generation of investors that have grown up in a digital world, stressing that everything that has been of greatest value to them has been digital.
“It’s pretty obvious that the WSB traders are applying the same principles of the digital/CryptoAsset world to the stock market and they are loving the fact that the old schoolers are hating it,” Cuban wrote.
Cuban argues that for many old-school traders the idea that a crypto asset could be a store of value is crazy because it has no intrinsic value.
“To them, it is a digital representation of nothing, that crazy people are paying good money for. That is not the case,” writes Cuban.
He adds that Wall Street and the agency that regulates it, the U.S. Securities and Exchange Commission (SEC), “have become fat and happy” and this makes the old school slow and resistant to change.
“Very resistant. And obviously very unaware of the change that is happening around them,” adds Cuban.
By: Tanzeel Akhtar