Via The FinTech Blueprint,
Despite its best efforts to the contrary, Robinhood did end up stealing from the rich and giving to the poor.
Melvin Capital, the $8 billion hedge fund that didn’t find GameStop funny, lost 53% of its portfolio in January ($7 billion) trying to short against the rallying cries of the Reddit Capitalist Union. Gabe Plotkin also faces the embarrassment of having to get bailed out by your old boss.
Speaking of, New York Mets owner and former name-on-the-door of SAC Capital, known most recently for its insider trading fine of $1.8 billion, Steven A. Cohen, put $2.8 billion of capital into Melvin’s fund.
Ken Griffin, owner of the Citadel hedge fund (an investor in Melvin), and Citadel Securities (a massive market maker and buyer-of-order-flow for Robinhood), is seeing capital losses in the former and Washington cries for scrutiny into market structure in regards to the latter.
Robinhood itself — which for goodness sake is *not Wall Street*, but as *Silicon Valley* as it possibly gets — raised $1 billion immediately to protect itself from class action lawsuits, DTCC capital calls, and a now-rapidly-closing IPO window. That means Yuri Milner of DST Global chipping in yet again.
That’s at least 4 people that have had a very bad, no good day.
The Reddit Wallstreetbets army has 8 million members. Robinhood has 13 million users. These are the opposing force. They are, loosely speaking, having a pretty good day.
But there are other billionaires who are having way more fun with this too. World’s richest man Elon Musk is raising the crypto rallying flag, and ex-Facebook billionaire Chamath Palihapitiya is trading along with Reddit for quick profits. Decentralized hedge fund and all. This isn’t how much money you have. This is about a mindset, and a framing of the world. It’s about who you are, and who you are not. And it’s about what you did and did not do.
Do you side with the Internet’s gamer heroes, wearing Nyan cat shirts and crying out sarcastically for “moar Stonks, money printer go brrrr, number go up”! A post-Gawker-4chan swirl of human vectors, coalescing into one giant middle finger to every Karen and Ken? Dopamine splashing out from our pituitary glands into a vortex tornado of well-earned resentment.
Source : globalintelhub.com/how-fintech-fked-fina...t-what-comes-next-2/