Ripple skyrocketed by 15% in half an hour, doubled in 30 minutes, and rose by 12.28% as of press time; behind this round of skyrocketing is WSB, the leader of retail investors in the United States. He declared in his community that he would fight against the SEC. The former Ripple (XRP) has formally launched a legal counterargument against the SEC.

According to US media sources, after being sued by the US Securities and Exchange Commission (SEC) for violating securities laws, Ripple submitted a preliminary answer (the first official counter-paper) to the court on the 29th. Ripple never sold #XRP# as an investment contract and claims that XRP is not a security. In his view, the SEC proceedings are based on an unprecedentedly simple legal theory.

The "Short Squeeze War of the Century" between American retail investors and American institutions ended in the final victory of retail investors. The representative of retail investors, the billionaire Chamath Palihapitiya, took the lead in buying GME frantically, and well-known short-selling institutions fled. After exiting the market and admitting defeat, GME rose by 1700%. This is the power of foreign retail investors. This time, American retail investors entered the blockchain, and Dogecoin skyrocketed 10 times within 24 hours. Now it seems very likely that Ripple lecturers and their next promotion target.

Crazy retail investors enter the game

Last week, the investment company Citron had a confrontation with retail investors. Citron said on January 19 that Game Stop would quickly fall back to $20 within a day, which touched the nerves of retail investors, and Citron became the target of retail investors. The founder of Citron, Andrew Left, was arrested by retail investors on Wallstreetbets Group up and attack.

Facing the crazy offensive of retail investors, Citron hastened to admit defeat. On January 22, Citron opened a new social media account and stated that it would no longer express opinions on GameStop, which calmed the anger of retail investors.

Because of GameStop, Citron lost face, but Wall Street hedge fund Melvin Capital was hurt on Gamestop.

Melvin has always insisted on shorting many monster stocks including GameStop, but the fanaticism of retail investors exceeded his expectations, causing him to suffer heavy losses and had to seek help from outside. According to the Wall Street Journal, so far two hedge funds have extended a helping hand to it-hedge funds Citadel and Point72 are expected to invest $2.75 billion in Melvin to help Melvin continue to operate stably. Citadel will contribute $2 billion and Point72 will contribute $750 million.

If it is a Bitcoin bull market this time, I am afraid it has not yet reached that height, but judging from the crazy growth of GME, Dogecoin and Ripple, retail investors may be more inclined to the currency with a cheap unit price but a large volume. Classic currencies that are not optimistic, go sideways or drop slightly will become the first choice. After all, as anti-institutional retail investors, they may want to deflate institutions more, so WSB has become a direction indicator for many retail investors to speculate.

Which will be next?

Chamath Palihapitiya, a celebrity on the WallStreetBets forum and a billionaire investor, said in an interview with CNBC on Wednesday, "A market neutral fund can get $10 billion in leverage from a brokerage with a principal of $1 billion. These are retail investors. There is no advantage. Wall Street monopolizes the investment market by relying on secrets, good dinners, and shoulder-to-shoulder support. The discussions on the forum are very transparent, and these are things Wall Street should learn from.”

Anthony Scaramucci, founder of U.S. hedge fund Skybridge Capital, said a growing number of retail traders shunned Wall Street, pushing stocks such as GameStop Inc. higher, suggesting a positive outlook for bitcoin. This is because this phenomenon embodies the guiding ideology behind Bitcoin - financial decentralization. Smartphones and low-cost transactions are "democratizing" the otherwise siled and highly centralized money management business.

Morgan Creek founder Anthony Pompliano said that WSB + Tesla + Bitcoin = a nightmare for Wall Street.

From the current understanding of WSB and the selection of currencies, it may be more inclined to light currencies, such as DeFi projects, etc., but in the traditional financial circle, it is possible that old-fashioned projects can attract more attention from them, no matter from time to time In the long run, or on the track, it may be stronger than DeFi.