TL;DR
A Reddit user boasts about RDDT gains, flashing classic pump-and-dump signals. New investors risk losing everything chasing this get-rich-quick mirage.
Story
Another day, another Reddit rags-to-riches story. This time, it’s u/throwaway_account bragging about turning dust into diamonds with RDDT stock. Color me unimpressed.
The post screams pump-and-dump.‣ Pump and dump: A scheme where insiders hype up an asset to inflate the price, then sell at the peak, leaving others holding the bag. It’s the same tired story we’ve seen since Dutch Tulip Mania.‣ Tulip Mania: A 17th-century craze where tulip bulb prices soared before crashing spectacularly. Remember 2008? Subprime mortgages? Same basic principle: hype, greed, collapse.
Our “hero” claims lifelong commitment while simultaneously bragging about flipping options. Sure, Jan. Actions speak louder than words, especially when money’s involved. They’re banking on FOMO.‣ FOMO: Fear of missing out—a psychological trigger that makes people buy into hype. They want you to chase their “easy money.”
What’s the human impact? Newbies, lured by promises of overnight wealth, will dump their savings into RDDT, only to watch it tank when the insiders cash out. Retirement dreams? Gone. College funds? Poof. It’s predatory, plain and simple.
Think I’m exaggerating? Remember Luna/Terra? FTX? History doesn’t repeat, but it often rhymes. The same “diamond hands” rhetoric precedes every crash. These aren’t anomalies; they’re symptoms of a system built on speculation, not value.
So, you want to avoid getting fleeced? First, skepticism is your best friend. Second, research. Due diligence.‣ Due diligence: Thoroughly investigating an investment before putting in money. Third, diversify.‣ Diversify: Spreading your investments across different assets to minimize risk. Don’t put all your eggs in one meme-stock basket.
Advice
Don’t buy the hype. Research before investing, and diversify to protect your capital.
Source
https://www.reddit.com/r/wallstreetbets/comments/1iiqs6n/when_you_reddit_right/