This morning we saw in plain sight how the stock market game is rigged.
The Robinhood trading platform banned the buying of $GME and $AMC.
While Robinhood was the pioneer for free-trades (before Robinhood, it typically cost $10 to make a stock market trade), we now clearly see who their real customer is.
Robinhood makes money not by trade fees as mentioned above, but by selling the trades that are executed to hedge funds in real time for market data. In a situation where their largest clients were getting destroyed by the little guy, they sided with the large corporations.
Robinhood isn’t so Robinhood anymore.
Robinhood wasn’t alone in this. The Wall Street Bets platform had a chat room on the platform Discord. Discord prided itself on being an anonymous chat platform that protects users information and identity. It was thought to be a platform for the people.
Discord banned the Wall Street Bets chat room.
What we are seeing is central powers controlling the game when the game isn’t played how they want it to be played.
David Portnoy said it best in this video:
It’s clearer than ever before that the internet is going to move towards decentralization.
Assets like Bitcoin, what $GME and $AMC tried to be before they got regulated, will become increasingly mainstream to fight centralization.
The need for decentralized finance, meaning tools that can’t be controlled by one entity but by either an algorithm or a group of people, will become mainstream by the end of this decade.
But man, what a drastic change of events:
From the retail investors taking down Wall Street to the next day being regulated and controlled…
Everything feels flat today. People are pissed. #FuckRobinhood is trending.
Something is going to emerge from this. This wasn’t a fad but part of a larger trend.
I imagine seeing a large in flow of capital into crypto.