- WallStreetBets launches blockchain-based apps to decentralize indices.
- It is a movement that empowers the world’s “little guy” investors.
- WallStreetBets ETPs could serve as an alternative to market manipulation.
WallStreetBets announced plans to use blockchain technology in a product to combat market manipulation in traditional finance. However, the step towards blockchain-based finance indicates a change of course for the unofficial, hierarchy-free move of huge pseudonymous participants. More so, their shared mission will be to fight back over corrupt institutions and to end the dependence.
Prominent figures within the WallStreetBets community work with blockchain and fintech technology experts. In order to create exchange-traded portfolios, or ETPs. This is the same as index funds, providing investors exposure to a variety of assets, ETPs could be run in a fully decentralized manner.
WallStreetBets ETPs could serve as an alternative to market manipulation perpetuated by opaque and politically joined banks and hedge funds. This is possible by harnessing the community consensus mechanism and transparency offered by smart contract tech and blockchain. Moreover, the novel product is made possible through a decentralized autonomous organization (DAO).
However, any retail investor with access to the internet will be able to utilize an associated application on their computer or smartphone. This not only gives an exposure to the ETPs but also participates in polling for the way in which their indices weighted.
WallStreetBets Founder Jaime Rogozinski said,
“The amalgamation of blockchain technology with financial markets is the next logical step for finance — and not just for Wall Street but everywhere…It will result in stronger, more democratized markets and will empower individuals around the world.”
Moreover, WallStreetBets has got huge organic social platform followers. More so, formal leadership is not present. And also the members of the movement are not of one specific ideology of politics. In addition, the WallStreetBets own $WSB governance token will govern Decentralized Application (DApp). Holders use the token to vote on rebalancing and also exposure of each community-based instrument.
For instance, WallStreetBets tries to fight back through protest after the global financial crash back in 2008-2009. However, then beats the Wall Street insiders at their own game by short destroying them to close bankruptcy. All in all, with the soon-to-be-launched ETPs, the platform aims to exit the existing system for the one that is fair and depends on the community.
Furthermore, WallStreetBets founded in 2012. It is a movement that empowers the world’s “little guy” investors over unaccountable financial institutions. More so, the movement lacks formal leadership and is rather a grassroots decentralized effort to leverage the power of a community organized. In order to bring accountability and transparency.
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