In recent days, a number of stocks, such as GameStop (GME) and AMC Entertainment (AMC), have risen dramatically in price, reportedly consistent with the attention of Reddit users buying despite sales pressure from major players. Popular trading platform Robinhood then began to narrow down the ability of customers to purchase multiple assets related to the drama. When asked his opinion on Robinhood suspending GameStop stock purchases, Richard Byworth, CEO of crypto exchange EQUOS, pointed out the importance of freedom in the markets.
“It is always important to have free and transparent markets for all traders, and maintaining an open trading book that is available to all is a responsibility of all trading platform providers,” Byworth told Cointelegraph. “The GameStop issue and platform responses will likely make crypto assets more visible.”
On January 22 a share in GME cost about $ 53, according to TradingView.com data. On January 28, GME peaked at approximately $ 508 per share. In the hours after the peak price, the asset fell all the way back to about $ 113. Since then, GME has remained volatile in price, ranging between about $ 197 and $ 411.
“I think it is a clear indication of how broken and fundamentally manipulated the traditional financial system has been,” Aleks Svetski, co-founder and CEO of Amber, a Bitcoin investment platform, told Cointelegraph.
“This will set all the wrong precedents and is one of the last nails in the coffin for the relationship between Main Street and Wall Street,” he added. “The WSB folks will probably turn to Bitcoin too, because they realize it’s the one thing that can’t be turned off.”
The people responsible for the soaring stocks are part of a subreddit called Wall Street Bets, sometimes abbreviated to WSB. The squad reportedly looked for stocks with huge short-seller interest and bought up shares of those assets, triggering price hikes, a CNBC article said on Wednesday. Robin Hood the purchase is suspended of certain associated assets on Thursday.
What effects could the suspension of Robinhood’s asset purchase have on the crypto space going forward? “Situations like these show why regulation is important and ensures that there are orderly markets, equal access to information for all and trading platforms that provide fair opportunities for clients to trade, hedge and trade,” said Byworth , which adds:
“In crypto, there have been some exchanges that have not provided this type of trading environment, and often it is the client that loses. It is the job of exchanges to provide a safe, transparent and compliant trading environment so that investors can access markets that are relied on – by regulators and by traders. At EQUOS, we do not trade against clients on our platform like most crypto exchanges, nor do we sell our clients’ data to High Frequency Traders as many traditional brokers have done. “
The United States Securities and Exchange Commission, or SEC, recently expressed its intention to examine the events of the past days.