Robinhood CEO wants to prevent another 'GameStop'
After the high-profile GameStop stock trading saga in 2021, where retail investors collapsed the share price, Robinhood brokerage is working on a new approach to securities trading. Robinhood CEO Vlad Tenev said the company is developing 24/7 on-chain trading of tokenized stocks.
According to Tenev, this will help avoid a repeat of the GameStop situation, when Robinhood was forced to temporarily restrict trading due to high volatility. The owner of one of the most popular trading apps in the US believes that the transition to stock trading on the blockchain will provide round-the-clock and continuous access to the securities market.
Currently, stocks on traditional stock exchanges are traded only during certain hours, which creates 'closing windows' in which investors cannot react to important events. Transferring stock trading to the blockchain will provide 24/7 liquidity and avoid situations where brokers are forced to restrict market access.
Expert opinion: Robinhood's initiative to move stock trading to the blockchain network seems like a logical step after the GameStop events. The introduction of crypto technologies can indeed help solve the problem of liquidity and volatility in the stock market, but will require careful coordination with regulators. It is important to ensure the reliability and security of the new trading model to avoid manipulation by traders. Overall, this idea looks promising, but will take time to implement.