WallStreetBets Developing a Decentralized App

WallStreetBets (WSB), the Reddit group behind this year’s GameStop saga, is planning to use blockchain technology to combat stock market manipulation, WSB said in a press release on 4 May.

According to the announcement, “prominent figures” within the community have been working with blockchain experts to create decentralized exchange traded portfolios (ETPs). The group further looks to launch a WSB decentralized application (dApp), which will enable allow the community to make important decisions and vote on various issues. The founder of the WSB Reddit forum, Jaime Rogozinski, said in a statement:

“The amalgamation of blockchain technology with financial markets is the next logical step for finance — and not just for Wall Street but everywhere. It will result in stronger, more democratized markets and will empower individuals around the world.”

The WSB ETPs will be governed under a decentralized autonomous organization (DAO) consensus. The WSB dApp will be released with a corresponding WSB governance token, which will allow token holders to vote on how the portfolios of stock are rebalanced. According to BTCVIX, the CEO of the WSB dApp, this mechanism will allow investors to exit the “existing system for one that is fair and relies on community”.

Even though the WSB community could soon end up using a governance token, its Reddit forum continues to ban all discussions related to crypto, with a moderator saying the subreddit was focused on stocks, and that when it comes to discussion crypto the “negatives outweighed the positives”.

WallStreetBets became internationally popular earlier this year, when it tried to short squeeze sellers on Wall Street. Most notably, during the saga the price of GameStop stock, which was heavily shorted by approximately 140% in January, went from $20 to $347 in only two weeks.