In the last few years, two assets—GameStop shares and Dogecoin on the crypto side—have come to symbolize a reckless new form of investing. Both have had multiple weeks where their price has soared 100% or more based on no fundamental value proposition. Sure, there have been catalysts for various GME and DOGE rallies—typically a pump signal from Roaring Kitty or Elon Musk—but there is also a deeper, and somewhat troubling, explanation for what's going on: a crisis of male identity.
I've weighed similar thoughts over the decade I've covered crypto, but the new book The Trolls of Wall Street makes the case explicitly. The book is primarily about the guys behind r/WallStreetBets, the Reddit forum where a community of primarily young men came together to share research and stock tips and, in time, stoked some of the craziest rallies in history.
The book is about the equities market, but its insights apply equally to crypto, which is fitting since the author, Nathaniel Popper, is a former Bitcoin reporter. Popper is sympathetic to his subjects and is quick to point out that, in many cases, the r/WallStreetBets crowd was more informed than the hedge fund barons who belittled them. In exploring their lives and motivations, however, Popper also identifies a common thread that led many of the participants to lean into nihilistic financial wagers and, in some cases, an embrace of some of the worst sexist and racist banter on the internet.
That common thread is the very human one of needing a place to belong and feel valued. The Trolls of Wall Street describes how many of the young men in the r/WallStreetBets forum—as is the case in any given crypto one—lived unsatisfying lives, and instead of launching a career or a family or doing the other things that come with being an adult, remained stalled and unable to flourish in the broader world. At the same time, young women have been faring better than ever in terms of education, income, and professional advancement.
In this context, Reddit and crypto forums offered young men a chance to engage in inappropriate jokes, and express the sort of competitive and aggressive behavior that felt natural—even if the outside world wanted no part of it. It was also in these forums that great achievements such as outtrading billion-dollar hedge funds and building successful blockchains took place. They provided communities where men—and, of course, some women—could build something, for bad or for good.
Which brings us back to GameStop and Dogecoin. Both of these are a terrible place to put your money because they are building very little of value—yet they still have legions of mostly young men who will back them anyway out of loyalty to their online community. That's fine, but it's hard to shake the feeling that most would be happier by seeking out more traditional forms of male validation instead. You may have a different opinion. If you want a longer take on the book, check out my review and Leo's Q&A with Popper.
Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts
