WallStreetsBets creator wants to make stocks like crypto.
The leaders of the Reddit forum said that they will launch a DAO expedited by a $WSB token.
A founder of WallStreetBets announced today that he wanted to use blockchain tech to bring out stock market manipulation.
The process will take WallStreetBets out of the recesses of subreddits and in the world of decentralization. As the group seems to launch a WallStreetBets Dapp and $WSB governance token. The token holders will use $WSB to vote about the rebalancing of a portfolio of stock investments.
This concept combines DAO with index funds, collections of stock and bonds that signify a financial market.
The press release stated that the “prominent figures” in WSB. Rogozinski and BTCVIX, have been teaming up with blockchain experts to build exchange-traded portfolios (ETPs). Unlike index funds, can be easily decentralized.
“By harnessing the transparency and community consensus mechanisms provided by blockchain and smart contract technology, WallStreetBets ETPs may serve as an alternative to the kind of market manipulation perpetuated by opaque and politically connected banks and hedge funds,” it said.
WallStreetBets’ Participation in GameStop
Amusingly, WallStreetBets participation in GameStop trading, when the price of the video game retailer’s shares went from $20 to $347 in just two weeks, and it has been viewed by some as a stock market manipulation.
In January, Mark DeCambre and Andrew Keshner wrote for MarketWatch:
“[GameStop’s] ascent—in the absence of any market-moving news—raises another issue: the distinction between legitimate, totally legal stock-market hype in 21st Century social-media chatrooms and market manipulation that enables some investors to cash in on the exuberance of others.”
Another is the fact that Rogozinski founded the WSB because he was bored with index funds, which let the people invest in markets without picking winners and losers. But DAOs are coming into vogue for investment purposes because they are allowing individuals to gather their funds and collective wisdom to create unique portfolios. For example, Neptune DAO serves as an alternative to a venture capital firm for DeFi protocols needed for liquidity.
Because of these three ironies, cryptocurrency is free of market manipulation. However, WallStreetBets is not interested in crypto trading. After announcing that they will open the subreddit to posts about Bitcoin, Ethereum, and Dogecoin, the moderators of WSB changed their decision; the forum is still exclusive for stock investing.
The token is a means to an end, instead of being an investment itself.
“The amalgamation of blockchain technology with financial markets is the next logical step for finance—and not just for Wall Street but everywhere,” stated I, a strategic partner for WSB DApp. “It will result in stronger, more democratized markets and will empower individuals around the world.”
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