WallStreetBets was created as a sub-category of the Reddit forum (otherwise called a subreddit) in 2010. The group’s founder, Jaime Rogozinski, sought to build a community that shared his passion for high-risk trades. In fact, Rogozinski says that one thing that inspired him to create WallStreetBets was that followers said his investing style was similar to gambling.
However, until 2020, the group was largely a fringe group on the internet. In fact, it took until 2017 for the group to reach 100,000 subscribers. However, in 2020, a number of factors combined to take the group to where it is today at over 5 million subscribers.
First, the Covid-19 pandemic gave many would-be traders time on their hand and few entertainment options. Then, you had stimulus money that these investors could use as “seed money” for taking aggressive market bets. And these investors also had access to trading apps such as Robinhood and Webull that allow commission-free trading that included the ability to trade on margin.
It truly was the perfect storm for WallStreetBets.