Papertrade / Smoltrade: Leverage Gambling Disguised as Trading
Multiple voices warned that Smoltrade/Papertrade's 1000x leverage feature is effectively casino gambling, with one case study of a user burning through $45K in liquidations.
What we know
An account on X promoted Smoltrade as a feature of his Smolting ecosystem, but pushback emerged quickly. Another account on X described how a user called 'Frank' got liquidated 37 times and burned through $45K spamming $1K 1000x leverage bets, comparing the experience to 'rainbet gambling.' The thread highlights a growing tension between gamified trading products and responsible risk management in the CT community.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.