The recent halt of stock trading, particularly targetted at the rising GameStop stocks by the commenters of popular social platform Reddit, has been condemned by all. The United States Congress had been so conscious of the whole situation that it has purported a date to discuss the issue, which resulted in Wall street’s halting of major stocks.
The latest to condemn the action is famous Bitcoin analyst, Anthony Pompliano who feels the action is not a normal American community’s business situation. The businessman had condemned the actions of the Reddit commenters and felt like there should be consequences.
Pompliano wants sanctions on the Reddit Users
In the statement of the CEO of digital assets firm, Morgan Creek, he believes that the decision to halt trading by the SEC has now left traders as a tool in the hands of the rebellious commenters on Reddit. According to Pompliano, the traders were trying to make the best use of their trading stocks, and now at the verge of that, the market gets shut.
He feels like they were treated unfairly by the decision meted out to them, and he expects that the traders start to ponder on the idea of moving to the digital DeFi space to continue their trading. Pompliano also reiterated his opinion, which he has once mentioned in his daily editorial, saying that everyone novice now has access to trading due to the prevalence of technology everywhere.
He also feels like the market should become more open and competitive and that hedge funds should trade alongside the free market. He feels like if this is not allowed in the long run, most of the traders will use the open door to the digital decentralized free space.
Traders might have to start looking at the cryptocurrency market
Many analysts have compared the cryptocurrency space to the traditional stock markets and believed that the openness and non-regulation of the cryptocurrency market mean that trading might never be halted due to any reason. This is another advantage that the cryptocurrency space possesses over the stock market.
The Reddit users’ action continues to be condemned by all, especially after they were behind the rise in prices of shares of Gamestop, Nokia, AMC Entertainment, and Blackberry. Robinhood has also been questioned after the centralized broker, who has been vested power to stop trading of volatile and unconforming market stocks, had utilized the power within its means to halt the trade of DogeCoin due to unconfined market conditions.
However, the main concern of retail traders is the re-occurrence of restrictions like this especially considering that they had no hand in it and the perpetrators still have the power to do something like that in the future. However, the good news is that they can now consider the digital space, which is now open to all without restrictions.