Jim Cramer Suggests Snapchat Could Be Used for Insider TradingBy: Josh Wolford - July 18, 2013
Snapchat, the ephemeral messaging app that’s gaining quite the following, has been accused of facilitating some risque communications. When it first launched, it quickly garnered the reputation as being a “sexting” app for teens.
You see, Snapchat allows users to send short messages which then self-destruct in a designated amount of time – 30 second, a minute, 5 minutes, and so on. At that point, the messages are deleted from the recipient’s device. If the recipient tries to take a screenshot of the image, the message sender is notified. I’m sure you can see how it developed its “sexting app” reputation.
Now there’s another interesting (and illegal) Snapchat use that’s gaining some attention – thanks to CNBC’s Jim Cramer. Apparently, he thinks that Snapchat could be used for the purpose of insider trading.
At least that’s what he told U.S. Attorney for the Southern District of New York Preet Bharara. Speaking at the Delivering Alpha conference, Cramer suggested that Snapchat could be used to send out insider trading tips.
The funny thing is that Bharara had no idea what Snapchat was until Cramer mentioned it.
The context for this discussion comes from a recent report from New York Magazine centered on Wall Street’s new obsession with the app.
“It’s absolutely blowing up right now,” a former banker told NY Mag. “People are generally sending shots of cubicles, laptops, airports and other motifs of corporate life.”
And they’re also using it to communicate all of the private aspect of their lives that they wish to keep out of the public eye. Drinking at a bar? Don’t Facebook it – send it with Snapchat.
But Cramer suggests that it could be used for much more nefarious purposes.
Whatever Snapchat’s being used for – it’s being used…a lot. A few months ago, the service announced that they were now moving more than 150 million photos across the network every single day.