are we in a prop firm bubble?

With new prop firms springing up every second, and the absence of regulation in the space, don't you guys think all these is superficial and may not really last? I have a feeling the bubble is going to burst sooner or later and prop firms will just go away and be forgotten. Thoughts?

T
@tony_xhan - 16 hours ago

I have been feeling the same way, this gamification of trading is going to implode one day

Quoted - tony_xhan

I have been feeling the same way, this gamification of trading is going to implode one day

Its gonna be hard to ban prop firms because they are not asking you to trade real cash, its a demo account.

M
@maasai_princess - 13 hours ago

Prop firms rely on losing traders to come back and buy a challenge, very soon people are going to figure out that its a glorified ponzi scheme and prop firms will die a natural death.

C
@cahaya_dewan - 12 hours ago
Quoted - maasai_princess

Prop firms rely on losing traders to come back and buy a challenge, very soon people are going to figure out that its a glorified ponzi scheme and prop firms will die a natural death.

Yes @massasi princess, people soon gonna figure out its better to lose to the market than to lose to a corporation that has rigged the game against you. EIther that or regulators gonna step in and say enough is enough

G
@godswillfx - 9 hours ago

Yeah, kinda.

The prop firm space exploded with easy challenges and hype, but we're in the shakeout phase now — dozens (80-100+) of firms have already died since 2024, trust issues and payout problems are rampant, and regs are tightening.