This is actually damn great. It makes pre-IPO Reddit Inc. shares worth less and less, as more people join those bets.
Investors weight the risk before pouring money into a company. The higher the risk, the cheaper must be the investment in relation to the expected profit. And having people publicly placing bets on the fate of a company screams “you’re playing Russian roulette with your money!” from afar.
This is actually damn great. It makes pre-IPO Reddit Inc. shares worth less and less, as more people join those bets.
Investors weight the risk before pouring money into a company. The higher the risk, the cheaper must be the investment in relation to the expected profit. And having people publicly placing bets on the fate of a company screams “you’re playing Russian roulette with your money!” from afar.