Discord has banned the server associated with WallStreetBets, the subreddit group, that pushed the valuation of GameStop’s stock up over 1000% in just two weeks. Discord said that the decision wasn’t related to the trading activities on the platform but due to hateful and discriminatory content after repeated warnings. GameStop has received a great deal of attention in the press as its stock price continues soaring.
Discord Bans WallStreetBets Following Hateful Content
In a statement released to major media outlets, a Discord spokesperson wrote:
“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…To be clear, we did not ban this server due to financial fraud related to GameStop or other stocks.”
For those interested, here's the full statement from Discord when I asked if they had taken down any content or banned/restricted users for involvement in the Gamestop saga: pic.twitter.com/MjrACMfH9y
— Hannah Murphy (@MsHannahMurphy) January 27, 2021
Reddit’s WallStreetBets has been fueling massive volatility in the stock market over the past several days by driving up share prices for GameStop, AMC Theaters, and Nokia. The online community initially originated on Reddit. Although, its members have also set up a server on the group-chat platform Discord to discuss stock-tradings.
The subreddit dates back to 2012 and has been credited with pushing GameStop’s stock to record highs while costing hedge funds in billions.
Anthony Scaramucci, hedge fund manager, sees recent GameStop price action as proving Bitcoin’s larger thesis of decentralizing and democratizing finance.
SEC Taking Notice on the Market Volatility
There have been huge debates behind the legality of WallStreetBets, or if, regulators should do anything about it. Meanwhile, regulators do seem to be taking notice.
The Securities and Exchange Commission (SEC) without naming GameStop or WallStreetBets, referenced the situation in a public statement that they were actively monitoring the on-going market volatility:
“We are aware of and actively monitoring the on-going market volatility in the options and equities markets and, consistent with our mission to protect investors and maintain fair, orderly, and efficient markets, we are working with our fellow regulators to assess the situation and review the activities of regulated entities, financial intermediaries, and other market participants.”