Discord bans r/WallStreetBets as Reddit sub is locked, GameStop stock fell hours later
Reddit’s WallStreetBets community has been under fire
in the past week in an ongoing dispute between big-time Wall Street Investors
and social media betters. This resulted in the banning of their community on
chat app Discord. Reddit has also locked general access to the community as
only those invited can access it.
Reddit investors seem to have been dumping their
shares ever since.
Stocks of GameStop and AMC dramatically dropped in
after-hours trading, shortly after the drama unfolded. The drop was temporal,
and the Reddit WallStreetBets community has created a new community on Discord.
Shares of GameStop fell 32% to $218.32 down from
$347.51, in after-hours trading late Wednesday. Shares of AMC fell more than
40% to $11.90 per share and closed at $19.90, even though the stock rose more
than 301% during the day.
The recent battle between Wall Street Investors and
Reddit community’s shown traits of market volatility. An example is seen in the
rise of GameStop shares in recent days, analysts say it is a result of quirks
in the market and not necessarily actual increased value, as the video game
retailer is currently struggling. Analysts said the same about movie theater
chain AMC, which announced that it was near bankruptcy late last year.
The Discord ban was also targeted towards obnoxious
community members who repeatedly broke the platform’s rules, according to the
chat app in a statement. “Today, we decided to remove the server and its owner
from Discord for continuing to allow hateful and discriminatory content after
repeated warnings.” Adding that the ban had nothing to do with financial fraud
or stocks between the parties involved.
“The WallStreetBets server has been on our Trust &
Safety team’s radar for some time due to occasional content that violates our
community guidelines, including hate speech, glorifying violence, and spreading
misinformation. Over the past few months, we have issued multiple warnings to
the server admin,” a Discord representative told Insider.
The WallStreetBets community originated on Reddit,
with its members eventually setting up a group, known as the Server, on
Discord. It is a forum where they discuss stock-trading plans and share ideas
with each other.
Some moderators of the Reddit community criticized the
move, as they saw no tangible reason for the ban.
“We’re suffering from success and our Discord was the
first casualty,” they wrote in a Reddit post. “You know as well as I do that if
you gather 250k people in one spot someone is going to say something that makes
you look bad. That room was golden and the people that run it are awesome.”
They added that Discord did them “dirty”, expressing
displeasure with the move to destroy the community. “… instead of stepping in
with the wrench, we may have needed to fix things, especially after we got over
1,000 server boosts. That’s pretty unethical.”
The White House Press Secretary, Jen Psaki, at a press
conference said the situation was under watch, as Treasury Secretary Janet
Yellen was part of the team “monitoring the situation.”
“It’s a good reminder, though, that the stock market
isn’t the only measure of the health of our economy,” Psaki said. “It doesn’t
reflect how middle- and working-class families are doing.”
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