A number of stocks such as GameStop (GME) and AMC Entertainment (AMC) have risen in value in recent days, in line with Reddit users’ interest in trading due to pressure from major players. Popular trading platform Robinhood then began limiting clients’ ability to purchase more drama-related assets. When asked for his thoughts on Robinhood’s stopping purchase of GameStop stocks, Richard Beworth, CEO of the cryptocurrency exchange EQUOS, emphasized 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 record is the responsibility of all market providers,” Beurth told Cointelegraph. “The GameStop issue and the platform response will likely focus on cryptocurrencies.”
According to TradingView.com, on January 22, GME’s stock was valued at around $ 53 USD. By January 28, GME had reached a peak of around $ 508 per share. Within hours of the peak, the asset was down to about $ 113. Since then, GME’s price has remained fluctuating, from $ 197 to $ 411.
“I think this is a clear indication of just how much the traditional financial system has collapsed and is fundamentally faking,” Alex Svetsky, co-founder and CEO of Amber, the Bitcoin investment platform, told Cointelegraph.
“This will set all the wrong precedents and be one of the last nails in the coffin of the relationship between Main Street and Wall Street,” he added. “People at WSB will likely also switch to Bitcoin the next time they realize that it’s the one thing that can’t be stopped.”
People believed to be responsible for the rally in stocks are members of the Wall Street Bet subreddit, sometimes shortened to WSB. As reported in an article on CNBC on Wednesday, the group reportedly searched for stocks of high importance to sellers and bought shares in these assets, causing prices to spike. Robinhood suspended purchases of some related assets on Thursday.
What implications might the suspension of Robinhood asset purchase have on the crypto space in the future? “Situations like these demonstrate why it is important to regulate and secure regulated markets, equal access to information for all, and trading floors that give clients opportunities to trade, secure and hold positions,” said Beurth, adding:
In the field of cryptocurrencies, there were some exchanges that did not provide such a trading environment, and the buyer often lost. The exchange is essential to providing a safe, transparent and compliant trading environment so that investors can access markets they trust – regulators and traders. At EQUOS, we do not trade with clients on our platform like most cryptocurrency exchanges do, nor do we sell customer data to high-frequency traders as many traditional brokers do. ”
The US Securities and Exchange Commission (SEC) recently expressed its intention to investigate the events of recent days.