The Robinhood scandal highlights the existence of a broken system and the importance of regulation, say two crypto industry executives

In recent days, various actions, such as GameStop (GME) y AMC Entertainment (AMC), saw their price rise dramatically, apparently consistent with care of Reddit users buying under the selling pressure of the big guns. The popular trading platform Robinhood subsequently began to restrict the ability of its clients to purchase various assets associated with the drama. When asked for his opinion on Robinhood’s suspension of GameStop stock purchases, Richard Byworth, CEO of the cryptocurrency exchange horses; pointed out the importance of freedom in the markets.

“It is always important to have free and transparent markets for all traders, and keeping an open trading book that is available for everyone to use, is a responsibility of all trading space providers,” Byworth told Cointelegraph. “The GameStop affair and the platform’s responses will likely see crypto assets become more focused on the issue.”

On January 22, a GME share it cost approximately $ 53, based on data from TradingView.com. By January 28, GME peaked near $ 508 per share. In the hours after its peak, the asset fell back to about $ 113. Since then, GME’s price has remained volatile, hovering between about $ 197 and $ 411.

“I think it is a clear sign of how broken and fundamentally fixed the traditional financial system is,” he told Cointelegraph Alex World, co-founder and CEO of Amber, a Bitcoin investment platform.

“This will set all the wrong precedents and is one of the last nails in the coffin of the Main Street-Wall Street relationship,” he added. “It’s also likely that the WSB folks are now moving to Bitcoin as they realize it’s the one thing that can’t be turned off.”

The people believed to be responsible for the rise in the price of these stocks are part of a subreddit called “Wall Street Bets”, sometimes abbreviated as WSB. The group was reportedly looking for stocks with great interest from short sellers and buying shares in those assets, causing price rises, according a CNBC article from Wednesday. Robinhood he suspended the purchase on Thursday of certain assets associated with the move of the redditors.

What kind of effects could Robinhood’s asset purchase suspension have on the cryptocurrency space going forward? “Situations like this show why regulation is important and guaranteeing that there are orderly markets, equal access to information for all and trade spaces that offer clients fair opportunities to operate, hedge and open a position”Byworth said, adding:

“In the world of cryptocurrencies, there have been some exchanges that have not provided this type of trading environment, and it is often the customer who loses. It is up to the exchanges to provide a safe, transparent and compliant environment for investors to can access markets that regulators and traders trust. At EQUOS, we do not trade against clients on our platform, as most cryptocurrency exchanges do, nor do we sell our clients’ data to registered traders. often, as many traditional runners have done. “

The United States Securities and Exchange Commission, or SEC for its acronym in English, recently stated its intention to investigate the events of the last days.

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