A recent video from the Securities and Exchange Commission warning against investing in “memestocks” was not well received by retail traders who pride themselves on such gambles. The video, part of a series called "Investomania," features contestants on a game show where a Jeopardy!-like board features options including: celebrity endorsements, fomo (fear of missing out), tulip bulbs, guaranteed returns, crypto to the moon, and meme stocks. The tone is purposefully bizarre and absurd: Contestant A chooses meme stocks to invest in, hits a button, watches his money drop down a trapdoor, and gets hit in the face with a pie. Contestant B opts to "do some research first" to which the meme stock investor replies "You can do research?"The loudest contingent criticizing the video could be found on Reddit, specifically in subreddits like WallStreetBets, where Redditors regularly push each other to execute risky trades and post their gains (or their losses, also known as "loss porn") for the community to gawk at. A thread called "A Message to the SEC" decries the SEC’s videos as hypocritically calling for investors to do their own research when “This market does not trade on research and fundamentals.” They go on to demand the SEC make "a formal apology on live television because the stock market as we know it will eventually cease to exist due to the fact that the investors you are antagonizing are the ones that are going to be taking care of your generation when you need help changing your diapers."The Investomania series tackles other risky bets, too. In a video titled “Investments: Crypto,” Contestant B chooses celebrity endorsements, yelling "I'm in!" after a celebrity message plays on the screen saying "You should trust me, I'm an actor." A loud red X appears on the screen, indicating she made the wrong choice. In both videos, a voice-over chimes in at the end: “Investing is not a game, always do your research before making an investment decision. Learn more at investor.gov.”Doing your own research or avoiding celebrity endorsements, however, are not enough for everyone to avoid losing their shirts. The SEC has previously cracked down on celebrity endorsements of crypto coin offerings, but it has gotten out of hand as celebrities and influencers brazenly endorse dubious projects or outright scams for a quick payday. And for many others, “doing your own research”—a popular obligatory phrase in crypto circles to absolve advocates of financial responsibility—is often not enough thanks to the degree of fraud, insider trading, and misinformation endemic to crypto ecosystems.None of this seems to deter the online retail traders however. "The SEC video makes me want to double down on MEME stonks," the top reply to the Reddit thread reads.
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