WallStreetBets Combats Market Manipulation Using Blockchain

The group, consisting of regular people with a talent for investing, started rapidly buying the companies’ shares, boosting their prices, and causing institutions to lose money.

The Blockchain App

Well, that same group recently decided to launch a blockchain-based app meant to combat traditional finance’s market manipulation, which I think is a really interesting approach.

The group made WallStreetBets Exchange Traded Portfolios or ETPs, that will allow investors the ability to access a variety of assets in a decentralized way. The group likely came to this idea after many stock-offering apps delisted the GameStop and other shares after WallStreetBets made its move back in February.

This has displayed the flaws of centralized systems, where someone can take away the investors’ ability to invest in any asset they wish at any time. As a result, WallStreetBets ETPs will offer a decentralized approach, which was inspired by several crypto exchanges that tokenized the desired shares, offering them to crypto users.

As I understand it, the product is powered by DAO, meaning that the portfolio rebalancing is in the hands of the community. The group did not precisely say when the product is launching, but it has, reportedly, started collaborating with experts in fintech and blockchain sectors to try and come up with a solution.

Crypto is the Future

The creator of the r/WallStreetBets subreddit, Jamie Rogozinski, said that the merger of traditional finance and blockchain is the next logical step for finance, which will lead to stronger, more democratized markets, which will empower individuals around the globe, and I do think that this is a worthy cause to be pursued.

It should also be noted that the subreddit managed to double its membership since January, which now puts it at around 10 million members. As such, it has become a force to be reckoned with in the financial world, and if its influence continues to grow, it might just become strong enough to make a difference and significantly reduce market manipulation.

Would you consider investing in the different traditional assets through a blockchain-based app?

  • Yes, I think it is a great idea to end market manipulation
  • Yes, it is more convenient
  • No, I don’t think it will work
  • No, I don’t trust this approach
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