Featured image of post Space Internet or Space Scam? Dissecting the ASTS Hype

Space Internet or Space Scam? Dissecting the ASTS Hype

Just read a Reddit post longer than my divorce papers It claims ASTS a space internet company will make you rich My skepticism is higher than their projected orbit Reminder: space is mostly vacuum and so are many of these promises Do your own research before your portfolio becomes one

TL;DR

A Reddit post hypes $ASTS as a guaranteed path to wealth through space internet, but it’s more likely a pump-and-dump scheme dressed up in technical jargon. Countless naive investors could lose their savings, blinded by the allure of “generational wealth.”

Story

Imagine this: You’re scrolling through Reddit, dreaming of quick riches. Then, a post titled “$ASTS DD The Space Trade will Cum” catches your eye. It’s long, filled with technical jargon, and promises a surefire path to wealth via a space-based internet company. Sounds too good to be true? It probably is.

This post, riddled with 🚀 emojis and explicit language, hypes AST SpaceMobile ($ASTS) as the next big thing. It claims ASTS’s “wholesale model” will give them access to billions of customers overnight. They’ll supposedly partner with telecom giants like AT&T and Verizon, using their existing networks to blanket the earth with internet access from space.

But here’s the catch: hype isn’t reality. The post glosses over the immense technological, logistical, and regulatory hurdles ASTS faces. Building a space-based internet network isn’t as simple as launching a few satellites. It requires years of development, billions in investment, and navigating complex international regulations.

The post also relies heavily on vague promises and buzzwords like “military applications,” “AI connectivity,” and “strategic space.” These terms are designed to evoke excitement and FOMO, but they lack concrete details. It’s reminiscent of the dot-com bubble, where companies with little more than a catchy website and a “disruptive” idea attracted millions in investment.

Remember the 2008 financial crisis? Subprime mortgages were packaged and sold as safe investments, leading to a global meltdown. This $ASTS post uses similar tactics, dressing up risky speculation as sound investment advice. It even boasts about the author’s “hotter wife,” implying financial success is linked to this investment. Pure manipulation.

The post downplays serious risks. It dismisses Starlink, a major competitor, with childish insults. It barely mentions the financial challenges of launching and maintaining a satellite constellation. This is like ignoring the iceberg while admiring the Titanic’s luxurious cabins.

The human impact? Countless naive investors, lured by the promise of quick riches, could lose their hard-earned money. They might even remortgage their homes or drain their retirement savings, just like those who fell for the crypto craze or the countless pump-and-dump schemes that litter the internet.

DD: Due Diligence - Researching an investment. ‣ SPAC: Special Purpose Acquisition Company - A shell company used to take a private company public, often with less scrutiny than a traditional IPO. ‣ MNO: Mobile Network Operator - Like AT&T or Verizon. ‣ FOMO: Fear Of Missing Out - The feeling that you’re missing out on a profitable opportunity. ‣ Pump-and-dump: Artificially inflating a stock’s price then selling before it crashes.

Advice

Don’t fall for hype, especially on Reddit. Research any investment thoroughly. If it sounds too good to be true, it almost certainly is.

Source

https://www.reddit.com/r/wallstreetbets/comments/1k3o8au/asts_dd_the_space_trade_will_cum/

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