Is it insider trading if wsb members short the stock, then make controversial content that frightens investors away?
If thousands of people contribute to it, even if it is insider trading, can it be reasonably investigated and prosecuted?
But more seriously, not a lawyer, but no I don't think so. The users don't know any non-public business information about future Reddit business decisions (i would assume) and compete fairly with other potential shareholders. It's not like other shareholders couldn't do the same thing, after all.
In the MOONs sunsetting, some moderators got a 1 hour advance warning before the public announcement... and some sold before it was made.
For the IPO, it would depend on the kind of user: if some mods decided to short Reddit, then stage a sub locking protest like during the APIcalypse, they would have both information and means not available to other public investors.
Is it insider trading if wsb members short the stock, then make controversial content that frightens investors away?
If thousands of people contribute to it, even if it is insider trading, can it be reasonably investigated and prosecuted?
But more seriously, not a lawyer, but no I don't think so. The users don't know any non-public business information about future Reddit business decisions (i would assume) and compete fairly with other potential shareholders. It's not like other shareholders couldn't do the same thing, after all.
In the MOONs sunsetting, some moderators got a 1 hour advance warning before the public announcement... and some sold before it was made.
For the IPO, it would depend on the kind of user: if some mods decided to short Reddit, then stage a sub locking protest like during the APIcalypse, they would have both information and means not available to other public investors.