Could social trading become a frontier to onboard the masses to financial trading?
Human psychology plays a large role in the growth of social trading, with shared beliefs within groups having significant impacts on moving prices and trends.
As fees race to zero across trading platforms, the differentiators shift to network effects, trader relationships, and proprietary information layers.
Growth has been significant, but so are risks. On Fomo, only 6.16% of 292K wallets were profitable over the last three months. Herd-driven volatility, information asymmetry, and undisclosed multi-wallet positions sit underneath the surface of transparent trading.
DWF Ventures explores where social trading is heading and what to watch for here.
DWF Ventures is always looking for projects to support. If you are building, reach out to the team here.
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