Anthony Pompliano commented on the recent Reddit rebellion related to the halting of certain stock trading, calling the stoppages “un-American”.
Morgan Creek Digital Assets founder Anthony Pompliano recently spoke on CNBC. The Bitcoin maximalist discussed his thoughts on the recent developments within the stock market.
Several stock brokers stopped the trading of certain stocks on Thursday citing extreme volatility. GameStop (GME) trading halted, for example.
Pompliano states that the restriction of trading stocks is “un-American”. He points to the recent Reddit rebellion towards the stock market as a consequence. Traders now have both tools and access to markets. These traders found mistakes and exploits made by large hedge funds. But when they try to take advantage of them, the markets get shut.
Pompliano elaborates that these very traders will simply move to the digital decentralization financial system.
“There’s no bailouts, there’s no circuit breakers, there’s no hours of operations, there’s no one to call to halt the trading of a stock,” Pompliano stated.
Tech Adoption Pushing Retail Trading
Pompliano also believes the growth of technology means everyone can now access the markets. The average Joe now has access to trading, which levels the playing field.
The Morgan Creek founder admitted that the free market should be allowed to trade against hedge funds. “Open the markets and let them compete,” he said.
Pompliano reiterates that an entire generation of young people with access to an internet connection will move to a digital decentralized free market.
The recent suspension of stock trading brought to light serious issues within the industry. But it also showed the advantages that the cryptocurrency industry and decentralization have to offer to traders.
Robinhood in Deep Trouble
Digital decentralization received a major boost following the Reddit rebellion. This accelerates a slow trend that is already gathering pace.
Retail traders now pose a major threat to major institutions and hedge funds. Those behind the surge in GameStop shares raised it by over 1,800%. The group of Reddit users also drove up prices on BlackBerry, AMC Entertainment, and Nokia.
Robinhood also halted the trading of DogeCoin due to what the company labelled as overwhelming market conditions.
Centralized brokers such as Robinhood clearly possess the power to halt the trading of whatever instrument they deem to be too volatile. Just days after instituting the trading halt, Robinhood raised $1 billion from existing investors. Analysts believe the funds are being used to meet regulatory minimums, as well as other requirements related to users’ trading activity.
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