After FAANG Stocks, Injective Protocol Lists GameStop
After Robinhood and other US brokerages suspended GameStop's trading, Redditors now have an alternative via Injective Protocol.
- Injective Protocol has listed GME futures trading on its Solstice Pro decentralized exchange (DEX).
- Due to the decentralized nature, anyone can trade GameStop's futures contracts against the USDT stable coin.
- GameStop's listing on decentralized exchanges such as Injective gives stock market traders a chance to enter the DeFi sector.
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Decentralized exchange (DEX) Injective Protocol has rolled out the first decentralized and commission-free futures trading of GameStop (GME) stock.
Injective Competes With US Brokerages
Injective has listed GME futures trading on its Solstice Pro decentralized exchange (DEX).
Due to the decentralized nature, anyone can trade GameStop’s futures contracts against the USDT stablecoin. The exchange also listed the trading of other large tech stocks such as Tesla, Amazon, and Twitter on their platform last month.
GameStop has recently attracted massive interest from retail traders causing its stock price to rise exponentially. Earlier, a subreddit known as r/wallstreetbets pooled together its members to make trades against short interest on GME stock.
The short squeeze that ensued caused hedge funds like Point 72 and Melvin Capital to close their short positions after losing billions within a few days.
The incident has been viewed as a rare moment in history where retail traders displayed their dominance over large hedge funds.
However, U.S. brokerage firms such as RobinHood decided to halt the GME stock’s trading amid the carnage. The trading suspension has been criticized by politicians, entrepreneurs, and other large investors.
This is unacceptable.
We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.
As a member of the Financial Services Cmte, I’d support a hearing if necessary. https://t.co/4Qyrolgzyt
— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
According to Cameron and Tyler Winklevoss, and many other experts, the incident proved once why there is a need for decentralized financial markets.
In this context, GameStop’s listing on decentralized exchanges such as Injective gives stock market traders a chance to enter the booming DeFi space.
Injective said it would provide 24/7 access to futures trading of the stock, a feature that traditional brokerages cannot avail to their customers.
The exchange can finalize transactions within a second on its Layer-2 blockchain, which costs almost-zero gas fees.
Disclosure: The author did not hold crypto mentioned in this article at the time of press. One or more members of Crypto Briefing’s management team owns INJ. The company (Decentral Media Inc.) owns INJ.