After the dramatic surge in the stocks like AMC and GameStop, Robinhood has started to put restrictions on the customer’s capacity to purchase various assets. Recently multiple stocks like GameStop (GME) saw a great rise in their stock as it drew the attention of Reddit traders. Regarding the matter, EQUOS CEO Richard Byworth comments that transparency in markets is necessary for traders. He added that Robinhood’s response to the gaming retailers’ stock will bring focus towards crypto assets.
Views On Suspension Of GameStop Stock, SEC Comments
Discussions sparked after the trading platform Robinhood started to restrict the purchase of GameStop stock. One share of GameStop cost $53 on 22nd January which took a sharp rise inclining to $508 on 28th January. The price dropped within a few hours at $113 per share. After that, the stock price of GME is swinging between $197 to $411.
Regarding the matter, Amber CEO Aleks Svetski commented that it definitely hints at the broken and damaged state of the financial system. Svetski also said that it is bringing irrevocable destruction in the relationship between Wall Street and Main Street.
According to the experts, WSB or the Wall Street Bets, which is a part of the subreddit, is actually the reason behind the increasing stock price. On Thursday, Robinhood put a suspension on purchasing stocks of some of the assets including GameStop.
Though the matter is undoubtedly concerning for traders, discussions are also going on about the probable consequences of it. According to Byworth, the importance of regulations is significant. Regulations should ensure equality in access and sustain the market in the correct order. It should provide fair opportunities and advantages to customers. He added that it is the customers who face the loss in these situations.
Regarding the matter, the Security and Exchange Commission has stated that the commission intends to investigate the matter.
