Decentralized finance protocols will avoid repeating the situation with GameStop stock (GME). This point of view was presented by billionaire Mark Cuban in the thread.
The problem: Brokers trade at the speed of light, but settle trades over 2+ days. This can happen again. Co-ordinated traders can hunt better capitalized platforms and make $ gme style buys. Solution? Blockchain. @InjectiveLabs @mirror_protocol othershttps: //t.co/F1KF5DduUY
– Mark Cuban (@mcuban) February 18, 2021
A former bitcoin critic noted that traders trade at the speed of light, and that transactions take more than two days to settle. Reddit’s confrontation with Wall Street over GameStop stock exposed infrastructure bottlenecks.
Cuban proposed to fight high-frequency algorithms and prohibit holding the asset for less than one minute. He believes that the stock market was created to raise capital and vest property rights, and not to profit robots over investors.
The billionaire stressed that the industry would benefit from stress tests and monitoring of the brokers’ available liquidity. Clients of platforms such as Robinhood will not be at risk of broker restrictions.
Robinhood is at the epicenter of the GameStop, Dogecoin and Reddit traders’ scandal
In conclusion, the billionaire suggested that in the conflict over GameStop shares, the SEC would take a position against investors. He urged the regulator to allow the use of a jury in the initiated proceedings.
Recall that during the hearings, Robinhood co-founder and CEO Vlad Tenev apologized for the introduction of a temporary ban on the purchase of a number of securities.
At the end of January, the service suspended trading on several assets amid a pump of GameStop shares. This decision caused discontent among investors and authorities.
Earlier in February, Cuban predicted that the decentralized finance and non-fungible token segments will become the main driver of the cryptocurrency market over the next 10 years.
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