WallstreetBets announced to launch the blockchain-powered application to combat market manipulation in traditional finance. WallstreetBets’ grassroots movement gained international notoriety by bringing powerful hedge funds to their knees.
Blockchain-based finance represents a change for unofficial, hierarchy–free move of largely pseudonymous participants. Their shared mission is to fight against corrupt institutions and to end dependence on them.
Wallstreet community was recently made famous by briefly hitting GameStop through coordination on a platform like Telegram and Reddit. It has been working with an expert in blockchain and fintech technology to create exchange-traded portfolios or ETPs. This is the same as an index fund, providing exposure to a variety of assets, ETPs could be run in a fully decentralized manner.
WallstreetBets ETPs can serve as an alternative to the type of market manipulation carried out by opaque and politically affiliated banks and hedge funds. It’s possible by leveraging transparency and community consensus mechanism provided by blockchain and smart contract technology.
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Decentralized autonomous organization (DAO) produced this novel product. That means community members with voting rights control the associated ETPs. Any retail investor with access to the internet will be able to use the application on their computer or smartphone. This gives exposure to the ETPs and participates in polling for the weightage of their indices.
“The combination of blockchain technology with the financial market is the next logical step for finance – and not just for WallStreet but everywhere,” said Jaime Rogozinski, the founder of WallstreetBets and strategic partner of the WSB DApp project. “It will result in a stronger, more democratized market and will empower individuals around the world.”
The WallStreetBets own $WSB governance token will govern Decentralized Application (DApp). The holder can use it to vote on the rebalancing and exposure of each community-based instrument. For example, if token holders believe Tesla stock should comprise 90% instead of 10% of a particular ETP portfolio. Then they can vote on it by signing a simple transaction using their $WSB tokens during voting cycles.
“For WallStreetBets the upcoming release of our $WSB token is a strategy change,” said BTCVIX, CEO of WallStreetBets DApp. “We tried to defend by protest after the global financial crash of 2008-2009. We then tried to beat Wall Street insiders at their own game by pushing them close to bankruptcy. And now, with our soon-to-be-launched ETPs, we simply want to leave the existing system for one that is fair and relies on community.”
WallstreetBets Founded in 2012. It is a movement that aims to empower the “little guy” investors of the world against uncountable financial institutions.