Social Media Meets Investing: Dub’s Influencer-Driven Marketplace
A New Way to Invest
Social media changed everything from news consumption to shopping. Now, Dub thinks it can do the same for investing through an influencer-driven marketplace where users can follow the trades of top investors with a few taps. Think of it as TikTok meets Wall Street.
The Concept
Founded by 23-year-old Steven Wang, a Harvard drop-out who began investing in second grade with his parents’ blessing, Dub is betting the future of investing isn’t about picking stocks but picking people. The app allows users to follow the strategies of traders, hedge funds, and even those mimicking high-profile politicians. Instead of making individual trade decisions, Dub users can copy entire portfolios.
Inspired by Gamestop
Retail investing has evolved dramatically over the past two decades. The days of $7 trading commissions and clunky brokerage interfaces were blown apart roughly a decade ago by mobile-first platforms like Robinhood that invited people to trade for free. At the same time, social media is reshaping how people, and particularly members of Gen Z, make financial decisions.
A Growing Phenomenon
As a Harvard student during the pandemic, Wang came to believe these two trends, retail investing and influencer-driven decision-making, were on a collision course. Between the Gamestop saga, Elon Musk’s ability to "move the Dogecoin and Bitcoin markets with every tweet," and people’s willingness to "really follow ideas and individuals to a whole new level," Wang decided to drop out in 2021 and start building Dub.
The Platform’s Success
Right now, the platform’s average user is between 30 and 35, says Wang, though New York-based Dub is clearly finding its way in front of an even younger audience. In recent weeks, this editor’s 15-year-old has asked more than once about "investing like Nancy Pelosi" after marinating in Dub ads on Instagram.
How it Works
Dub isn’t free. Wang was determined to generate revenue from the outset, and Dub does that today through a $10-per-month subscription model. Wang says further that some "top" portfolios on the platform charge management fees and Dub takes a 25% cut of those fees.
The Future of Investing
Dub is also investing aggressively in advertising, leaning heavily into Meta ads in particular to acquire users, including on Instagram. "We’ve been really lucky where I think the broader American population really believes there are other people out there that have an edge over them when it comes to the investing world," says Wang.
Fighting Words
The question now is whether Dub will follow a similar path as other fast-growing fintech startups, many of which have found themselves in the crosshairs of regulators. Robinhood disrupted finance by making trading free, but it also faced regulatory scrutiny ahead of its 2021 IPO, ultimately ditching a feature that showered users with digital confetti every time they made a trade.
A Safer Alternative
Dub says it’s keen to avoid the same mistakes. The company spent more than two years working with FINRA and the SEC before launching, ensuring its model complied with financial regulations. "We didn’t just navigate regulation at Dub — we embraced it," Wang says. (Like Robinhood, Dub is a fully licensed broker-dealer.)
Conclusion
Dub is an innovative platform that is changing the way people invest. By allowing users to follow the trades of top investors and copy entire portfolios, Dub is making investing more accessible and more educational. While some critics may argue that stock picking underperforms passive investing over the long run, Dub’s success and growth suggest that there is a place for both approaches in the world of finance.
FAQs
Q: What is Dub?
A: Dub is an influencer-driven marketplace that allows users to follow the trades of top investors and copy entire portfolios.
Q: How does Dub make money?
A: Dub generates revenue through a $10-per-month subscription model and takes a 25% cut of management fees charged by "top" portfolios on the platform.
Q: Is Dub a safe and regulated platform?
A: Yes, Dub is a fully licensed broker-dealer and has spent more than two years working with FINRA and the SEC to ensure its model complies with financial regulations.
Q: Can I make money with Dub?
A: Yes, Dub’s success and growth suggest that it is possible to make money with the platform. However, as with any investment, there are no guarantees of returns.
Q: Is Dub a good alternative to Robinhood?
A: Dub’s focus on education and regulation may make it a safer alternative to Robinhood for some investors. However, the best platform for an individual will depend on their personal investment goals and preferences.
