The GameStonk hit the $450 value degree yesterday earlier than corrupt corporations clamped down on its buying and selling. However one senator says the entire thing may have been prevented if blockchain know-how was applied.
Blockchain fixes this
Senator Cynthia Lummis stated yesterday that blockchain know-how may assist repair the rampant inventory manipulation that happens in monetary markets, as per a tweet.
Lummis represents the folks of Wyoming in the US Senate and has been in workplace since this month. She was earlier the consultant at massive for the district of Wyoming from 2009.
She’s now championing for blockchain know-how to battle corruption. In a tweet yesterday, Lummis stated, “What occurred with #GameStop this week is mainly unprecedented. At one level, there have been 38% MORE excellent claims to GameStop inventory than inventory that truly existed! Excellent news: we will repair this with #blockchain”
Lummis went on to say that if shares of the inventory have been issued on a blockchain, the MainStreet (learn: retail) traders would personal their very own shares of inventory (at the moment, only a declare in your dealer). The tech would additionally make Wall Avenue extra environment friendly whereas regulators just like the US SEC may extra precisely monitor the market, she added.
If shares of inventory have been issued on a #blockchain, #MainStreet traders would personal their very own shares of inventory (at the moment, only a declare in your dealer), #WallStreet will be extra environment friendly and regulators like @SEC_News can extra precisely monitor the market.
— Senator Cynthia Lummis (@SenLummis) January 29, 2021
Politicians lengthen their assist
The statements got here as retail buying and selling app Robinhood stopped the acquisition of GameStop (GME) shares yesterday, as retail merchants — a majority from Reddit discussion board WallStreetBets — drove costs as much as the $450 mark.
That value surge is alleged to have prompted implications for corporations like Robinhood and different “shorters,” — or corporations that guess in opposition to the rising costs for GME for a revenue.
However in a seeming case of corruption, Robinhood blocked the acquisition of shares and drove costs momentarily down, a transfer that was later slammed by politicians, enterprise leaders, and far of the retail buying and selling business.
These included politicians like US Consultant of New York Alexandria Ocasio-Cortez, who stated the general public deserved to find out about Robinhood’s determination to “block retail traders from buying inventory whereas hedge funds are freely capable of commerce the inventory as they see match.”
That is unacceptable.
We now have to know extra about @RobinhoodApp’s determination to dam retail traders from buying inventory whereas hedge funds are freely capable of commerce the inventory as they see match.
As a member of the Monetary Companies Cmte, I’d assist a listening to if vital. https://t.co/4Qyrolgzyt
— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
In the meantime, the furor has led many to state on Twitter that most people was prone to pay extra consideration to the crypto house now that the corruption and lack of assist for the small man have been being steadily uncovered.
However right here’s to hoping that they arrive for adoption, not for the pumps.
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