Michael Suppo, better known as Suppoman, has called Bitcoin leverage trading site ByBit, and the concept of leverage trading in general, “BitConnect 2.0”. In the second of two recent videos which show a more circumspect and market-critical shitcoin pusher, Suppoman calls out the practice of leverage trading, calling it “gambling on the Bitcoin price”, and heavily criticizes the actions of influencers who post referral links in the knowledge that most users will lose money.
Suppoman Tones it Down
Suppoman, who is usually known (and almost universally loathed) for his over the top market commentary and token promotion, has cut a much more wearied figure in the past month, during which time he has only posted two videos, and has, for the first time in some time, talked a remarkable amount of sense regarding the current state of the crypto market:
We’re now in a situation where the platforms that really drive the activity behind the prices are the ByBits, the BitMEXs, and all of the various exchanges that offer leverage, because leverage is 2019’s great opportunity to make money from simpletons.
He then goes on to explain how the leverage trading world is stacked against retail investors, the very people that are targeted with referral links on Twitter and YouTube, which have seen a huge increase in recent weeks thanks to a huge ByBit trading competition aimed at hoovering up inexperienced traders.
Retail Investors Tempted by Huge Gains
With the market being in a general state of stasis, Suppoman says that it is more tempting than ever to engage in leverage trading as it represents one of the few ways to make lots of money in the space at the moment. The platforms, he says, lure in inexperienced retail investors with a promise of free money on sign up, which they then leverage, often get liquidated, and can end up owing money to the platform.
There can be little denying that this is going on, but it is somewhat ironic that Suppoman, the man who has helped thousands of supporters get rekt holding shitcoins, should be the one to point out the perils of doing something that could lose investors their money.