Frederik Gregaard, CEO of the Cardano Foundation, said that in the future, blockchain will help avoid restrictions on trading in GameStop shares and make the financial market more transparent.
Recall that at the end of January, users of the Reddit forum “dispersed” the stock price of the network of computer game stores GameStop, so that institutional investors who opened short positions in shares received losses. Against this backdrop, some marketplaces, including the popular Robinhood app, have restricted trading in the network’s shares. This has caused a huge flurry of criticism from the community, and Gregaard believes that blockchain could help in such a situation.
He emphasized that Robinhood had restricted trading in stocks due to excessive demand and was overwhelmed by buy and sell orders and settlement processes. If these post-trading processes were carried out using the public blockchain, then the bottlenecks in the calculations would be visible to all market participants, and everyone would see exactly where there is a lack of efficiency.
According to Gregaard, the audit firm PwC said the technology “can reduce operational complexity and provide a single, trusted source of data.” In addition, blockchain could increase speed and efficiency by eliminating intermediaries. It would allow not only speeding up the trading processes, but also making them more transparent for retail investors.
“There are many opportunities for technology integration, for traditional financial institutions and leaders in the decentralized industry to work together. The Cardano code is open and anyone can verify it. This is just one application of our technology and we welcome innovation, ”said the CEO of the Cardano Foundation.
After the events with GameStop shares, a certain WSB token appeared at the “zero place” of the CoinMarketCap rating. This is a fictitious token supplied by the management of the service ahead of Bitcoin in support of Reddit users.
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