Amid a notable battle between Wall Street professionals and retail traders from the r/WallStreetBets subreddit, investing app Robinhood has suspended Gamestop (GME) and some other stocks buying today, citing the concerns of “significant market volatility.”
The action has indicated disapproval among retail traders and crypto proponents. Nonetheless, you can still sell those stocks.
The immense surge in GameStop price continued yesterday, as it reached USD 500 even in pre-market hours. Nevertheless, as several apps began restricting access to trading, after hitting USD 514.5 earlier today, GME plummeted to USD 126 (16:21 UTC).
After limiting the traders, Robinhood, which, according to the report, has around 13m users, issued the following statement:
“We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We also raised margin requirements for certain securities.”
The move has provoked an extensive influx of discontent amongst retail traders, many of whom suggest the company of its mission to “democratize finance for all.” For instance, popular stock trader Dave Portnoy termed it “Goodell level treachery.”
Active cryptocurrency advocates have not remained quiet. Several call this unprecedented move hypocrisy and are using the opportunity to remind the traditional market partners of the importance of decentralized finance. As cited by famous crypto investor WhalePanda, this might be the most eye-opening event for many.
In his latest newsletter, Bitcoin (BTC) advocate Anthony Pompliano of Morgan Creek Digital asserted that the continuing series of events is “the best marketing campaign for the future digital, decentralized financial system.”
In his terms:
“Bitcoin is throwing the middle finger to central banks. Decentralized exchanges are telling centralized peers to kick rocks. Digital assets that trade 24/7/365 without manipulation or intervention is where we are all heading. Whether you’re rich/poor, American/Chinese, smart/dumb, or informed/uninformed, you will be allowed to participate in the markets.”
Other market shareholders shouted foul, too. Messari’s founder and CEO Ryan Selkis declared this day a “crypto’s Netscape moment,” and was disgusted by the coordinated main street attempt to curb “retail market manipulation.” “Netscape moment” refers to the dawn of a new industry.
The CEO wrote:
“The sideshow of the GameStop retailers vs. Melvin hedge fund managers was entertaining to watch at least. But seeing Wall Street Bets get summarily executed on Discord; Robinhood suspend buying of retail investors’ preferred stocks; and tech influencers (Chamath, Elon, Portnoy) stoke flames of populist outrage really hits a trifecta. The winnings will be paid out in crypto.”
Selkis also advised:
- “Buy bitcoin to hedge against inflation, and potentially make a lot of money, but also to tell your government to f*ck off.
- “Buy ethereum to secure the fledging decentralized financial system and potentially make a lot of money, but also to tell your bank to f*ck off.”
- “Buy DeFi assets to boost liquidity, additional investment in better financial infrastructure, and potentially to make a lot of money, but also to tell your brokerage, lender, or asset manager to f*ck off.”
No Comment