You’d think that an industry like crypto and a guerrilla forum like Reddit’s r/WallStreetBets would go together like peanut butter and jelly. As a subreddit founded on the concept of putting it all on the line, it makes sense that r/WSB traders would be enthralled by by digital currencies. However, that doesn’t seem to be the case. In fact, at r/WSB, crypto discussion is currently one of the most controversial topics.
Wednesday afternoon, a r/WSB moderator dropped a bomb on the retail investing board. Ahead of the Coinbase (NASDAQ:IPO), the subreddit announced it would allow discussion of COIN stock, prompting a flood of posts. Then, a moderator took things further.
Cryptocurrencies, previously banned from discussion, got the green light. The mod said that r/WallStreetBets would allow with a daily crypto discussion thread, in which Bitcoin (CCC:BTC-USD), Ethereum (CCC:ETH-USD) and Dogecoin (CCC:DOGE-USD) comments would be fair game.
The post also addresses why cryptos were banned in the first place: They don’t fit with the subreddit’s primary focus of traditional investing. But, the board has had to deal with some growing pains.
In December 2020, the r/WSB subscriber count was at 1.8 million. In the wake of the GameStop (NYSE:GME) short squeeze that has put the message board on the map, that count has rocket to 9.8 million. The inclusion of r/WSB crypto discussion was likely a move to accommodate this growth.
r/WSB Crypto Posts Banned Again in Less Than a Day
It took less than 24 hours for the same mod to announce the indefinite ban of crypto posts on r/WSB. The reason behind the lightning-quick turnaround was a single Bloomberg headline announcing the subreddit news.
The knee-jerk reaction has thrown the subreddit into slight disarray. The rapid growth of the board has lead some to worry of “identity trading” within the community. The rule change has also prompted conversation about how the media is trying to divide the traders. Many Redditors who are responding to the re-ban are voicing their beef with the decision.
So where do things stand? Based on the last post, with a timestamp from roughly three hours ago, crypto discussion remains banned. Whether or not mods will respond to critics and reverse that decision again remains to be seen.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.