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SBF
@SBF_FTX
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@SBF_FTX
14) See, before, if a few friends decided to buy GME, they'd buy $3k, and pay a 1% spread. Then the internet came, and those 3 people became 10,000 people. So they bought $10m, and it went up 5%. And then hedge funds sold because it was "rich", and it went back down.
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SBF
@SBF_FTX
15) But now there's social media, and
@wsbmod
has 400k followers in a day. And so now it's not a few friends, or ten thousand message board readers. Now 1m people, together, decide to buy GME. And together they buy $1b.
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SBF
@SBF_FTX
16) And when they buy $1b, GME goes up in market cap by $10b. And then something new happens. For the first time, the masses, together, sometimes add up to a larger trade than the hedge funds. And so if the hedge funds short... Maybe GME goes up anyway.
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SBF
@SBF_FTX
17) And then there are the cascade effects: the liquidations and short squeezes and press and follow-on. And so GME goes up more.
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SBF
@SBF_FTX
18) And, of course,
@elonmusk
realized this first. Because he's popular enough--and his vision is compelling enough--that when _he_ fought for his company, it grew $800B.
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SBF
@SBF_FTX
19) And, of course, there's Bakkt, a company with no revenue or users (but a healthy dose of expenses!), looking towards a $3b+ listing. twitter.com/SBF_Alameda/st (If that gets you $3b, imagine what actual volume and revenue and profit gets you!)
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SBF
@SBF_FTX
1) BAKKT is about to go public. There are a number of "interesting" things in their deck. sec.gov/Archives/edgar
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SBF
@SBF_FTX
20) And, again, none of this says who's right, or who's wrong. Because, in the end, some things have direct physical value (or revenue, or something like that). To some extent--to a very real extent--everything else is what we all make of it.
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SBF
@SBF_FTX
21) Most value in the world is born from and sustained by our collective imagination.
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SBF
@SBF_FTX
16) As are so many things in life. Some things have direct physical value. To some extent--to a very real extent--everything else is what we all make of it. Most value in the world is born from and sustained by our collective imagination.
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SBF
@SBF_FTX
22) So I don't know if these will go up or down. Maybe they're a bubble; maybe they're a rocket ship. Maybe they've found a new in-between. They're volatile and risky, and you should use your best judgement. Maybe you should go long, maybe short, and maybe neither.
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SBF
@SBF_FTX
23) Right now, on Robinhood, you can no longer buy GME; you can only sell. Maybe you gotta do what you gotta do, but that's not what we aim for. FTX was built by traders, for traders. And we want to give you the products you want.
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