Hi everyone, first time writer long time reader!
Joining in on many today and being an individual that has been a long time r/wallstreetbets I wanted to start a discussion about the potential future implications of the halting of trading of several high volatility stocks on the RobinHood trading app among others. In my opinion I believe that this could be a huge opportunity in the crypto space as there are several issues with the current trading and stock ownership system.
- 1. After Hours Trading: Currently in the financial world there is very little accessibility to any or ability to conduct trades of stocks that one owns after trading hours 930-4. The ones with access to these tools are only the very wealthy with substantial holdings, and are more able to manipulate the markets and make moves when the average joe can't do squat. This alone could be a big push for transitioning the stock market onto a block chain of sorts which would make trades more public, traceable and accessible to all users.
- 2. Blocking trades of specific stocks: While this situation is still playing out to those following, currently Robinhood among other trading platforms have fully blocked traders ability to buy GME, AMC, BBBY, and NOK due to "increased volatility" but yet allow all accounts to sell said stocks. Kind of seems shady and market manipulative to me but I digress... Using Uniswap as an example, this can't and won't happen in defi as there is no single entity in control and cannot be used to block some trades while others are trying to scheme and manipulate the market of one stock or asset.
- 3. I NEED whos permission? : Who do I need permission from to spend my money the way I want to spend it? Its my money if I wanna blow it on yolo trades LET ME... Being able to send some hard earned dollars over into whatever sh!tcoin I want is freeing, once the dollar becomes a stable coin or what have you, its MINE, I call the shots, its my money and through my seed phrase, I am my own bank!
- 4. The People getting FED up: Personally as an individual with a foot in both doors, the established financial stock market and banking sector and also one in the up and coming crypto and defi market... I am getting quite annoyed with the former! With an understanding of the crypto market and knowing what it can be used for and all the permission less actions individuals can do for themselves it has me wondering why people are putting up with this broken system? It is a common saying that the people on wall street are crooks but nothing (mainstream) has done to stop them or change the system! The efficiency and applications for defi and crypto can greatly wipe out the need for individuals in the financial sector and that scares them! The banks are perfectly happy with the current system where they rake in millions/billions of dollars a year doing all the background work and just showing you what is in your accounts with simple and stylish UI... but behind closed doors, deep in the fine print, the banks are taking around 90% (varies) of your dollars and investing it for their own return and give you a measly 0.1% return for your deposit. People who have started down the rabbit hole of defi know that they can quickly, easily and safely do this themselves and turn that 0.1% on their dollars into 8-12% on their stable coin.... Celsius is a good option for those who want a mixture of a kind of bank but with also a high yield on their crypto with minimal technical knowledge... pls sign up using my referral code if you are interested : 1708051466 and get $20 in free BTC if u transfer $200 and HODL for 30 days.
- 5. Decentralization : Everyone in crypto is saying how the more decentralized a project is the better it can be... this can be seen as true alot in the past little while, single corporations are having way to much power... you can see through Facebook, twitter, and now RobinHood can make decisions that affect a lot of people with out ANY community input. Even though this company is making its product or service directly for these consumers! The key act of decentralizing is that no one company or one individual is in control, it is the people with the power!
Going forward I think that this thought of decentralization and corporate power is going to have a large narrative going forward. The actions of RobinHood today seem to be more in the interests of the few than the many.... and considering the name of the company it seems to be in direct contrast to their point of existence and mission statement. I think in the future many people are going to start wanting full control of their assets and financials which will lead them down the path of crypto and decentralized Dapps.... This is only the beginning.....
Happy to hear any comments, corrections or anyone elses thoughts on this hot take... this is the way.