involving several retail brokers who unilaterally halted purchases while continuing to allow sales of the stock.
First of all, the three million investors used ancient technology to coordinate the collective trade: Reddit is mostly a Web1 Internet forum with some Web2 social capabilities. Secondly, the crowd was trading manually. These two characteristics of the collaboration resulted in a severe inefficiency: It took more than three weeks to build up the collective position, giving competitors ample time to react and to pull the levers of power that whales usually have access to.
However, the advent of cryptocurrency markets fueled a new industry around trading technology. Trading bot companies and open-source projects serving retail cryptocurrency traders are riding the swell produced by the growing inflow of venture capital into the Web 3.0 space. How will the market react when this seemingly once-in-a-lifetime event starts occurring regularly? First, once per month, then once per week, then every day, and—finally—any time or all of the time?In the Web 3.0 era, decentralized organizations counting millions of retail investors, each deploying entire fleets of coordinated trading bots, will dominate the deep, turbulent waters of financial markets. Retail traders, the world over, will join forces in both open and closed collaborations.
Both open and closed collaborations will extend their reach by letting outsiders copy their trades without revealing their strategies. The tactic will garner them unbelievable influence, as they will pool capital from millions of investors who will be happy to follow those who know more. No one will be able to stop the peer-to-peer connections, and no one will be able to tell who is being coordinated.