{"id":172882,"date":"2021-02-07T20:33:00","date_gmt":"2021-02-07T17:33:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/robinhood-and-gamestop-proved-we-need-a-new-financial-system\/"},"modified":"2021-02-07T20:33:00","modified_gmt":"2021-02-07T17:33:00","slug":"robinhood-and-gamestop-proved-we-need-a-new-financial-system","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/robinhood-and-gamestop-proved-we-need-a-new-financial-system\/","title":{"rendered":"# Robinhood and GameStop proved we need a new financial system"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a37323970c8d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a37323970c8d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/robinhood-and-gamestop-proved-we-need-a-new-financial-system\/#Greed_will_win_again_and_again\" >Greed will win again and again<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/robinhood-and-gamestop-proved-we-need-a-new-financial-system\/#Crypto_is_the_shining_city_over_the_hedge\" >Crypto is the shining city over the hedge<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Robinhood and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a>Stop proved we need a new financial system <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDIvNDkzYmQxNzYtZTU1Yi00MGI4LWFhM2QtODVhNTQ4YTYwMzg0LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a136f3a>King Midas is most famously remembered through the fable we tell our kids that the king could turn everything he touched into gold. At first, it was a great idea that his greed turned even food into gold, leaving him wealthy but unable to live.\u00a0<\/p>\n<p>Robinhood\u2019s CEO and its board had the impossible King Midas dilemma this week: deciding whether to side with their customers and let them make over $15 billion in profits or halting trading and allow only the sale of GameStop (GME) to enable the money-hungry shorts to cover their position at lower prices and avoid massive losses. Robinhood showed everyone that its favorite color is money, and its friends are the same people who make sure you almost never win trading on Wall Street. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>GameStop saga reveals legacy finance is rigged, and DeFi is the answer<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Greed_will_win_again_and_again\"><\/span>Greed will win again and again<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As it usually does on Wall Street, greed triumphed. It was not only Robinhood, Interactive Brokers, Ameritrade, Charles Schwab, and Citadel and Point 72 but all centralized finances sided with the shorts.<\/p>\n<p>Robinhood launched a platform and an <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a> that represented the people and that was always going to act in the users\u2019 best interests. Still, the golden rule of startups applies: If you don\u2019t pay for the product, you are the product. The company\u2019s real plan was to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.thestreet.com\/investing\/how-does-robinhood-make-money-14856528\">collect<\/a> enough order flow and assets to charge large market makers hundreds of millions of dollars in fees related to securities lending and order flow. The professionals on Wall Street call retail investors \u201cplankton,\u201d as it is what hedge funds and institutions feed upon to deliver obscene profits and bonuses to their employees and shareholders. <\/p>\n<p>How is it possible in 2021 to have 136% of stock sell short? Who allows such things to exist and why isn\u2019t anyone being held responsible? While everyone is focused on enabling the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Reddit<\/a> mob to buy GME, no one is looking into the root cause of the GME problem: the collusion of brokers and hedge funds to use naked shorting to destroy companies for pure profit. <\/p>\n<p>When the GameStop <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.investopedia.com\/terms\/s\/shortsqueeze.asp#:~:text=What%20Is%20a%20Short%20Squeeze,pressure%20on%20the%20stock's%20price.\">short squeeze<\/a> took place, we found out who Robinhood\u2019s largest customer really was: Citadel &amp; Point72 (two of the most storied hedge fund managers on Wall Street), which pays Robinhood over $300 million in fees yearly for the order flow and securities lending. It\u2019s hard to believe Robinhood has its community\u2019s back when it\u2019s always looking over its own shoulder.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>r\/Wallstreetbets vs. Wall Street: A prelude to DeFi bursting onto the scene?<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Crypto_is_the_shining_city_over_the_hedge\"><\/span>Crypto is the shining city over the hedge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Creating unobstructed access to basic financial services has the potential to unleash the genius and sleeping talent in our society. IQ is distributed equally across the planet, but access and opportunity are not. Often, access depends on status and wealth, which means beating the system is impossible. What is possible? We need to take advantage of this moment, when the traditional financial institutions are exposed, to introduce the waves of innovation that have been occurring on blockchain technologies. <\/p>\n<p>From naked short positions to lying about how much annual percentage yield you really should be making from holding your assets with these institutions, it is time to introduce real, impactful financial freedom through financial tools and methods that act in the best interest of the users and not the abusers at the very top.<\/p>\n<p>There is a reason why some of the most intelligent, innovative and community-focused leaders are adding Bitcoin (BTC) and Ether (ETH) to their wallets and adding them to their Twitter profiles today. In protest of what we have witnessed this week \u2014 because no matter how hard they try \u2014 hedge funds, fat cats and tech bros cannot turn Bitcoin into dollars reserved only for their own pockets because the decentralized community is bigger than they are. <\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Alex Mashinsky<\/strong> is one of the inventors of Voice Over Internet Protocol with a foundational patent dating back to 1994 and is now working on Money Over Internet Protocol <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>. Over 35 patents have been issued to Alex relating to exchanges, VOIP protocols, messaging and communication. As a serial entrepreneur and founder of seven New York City-based startups, Alex has raised more than $1 billion and exited over $3 billion. Alex is the CEO and founder of The Celsius Network, a crypto lending platform founded in 2017 that provides members with curated services unavailable through traditional institutions.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/robinhood-and-gamestop-proved-we-need-a-new-financial-system\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Robinhood and GameStop proved we need a new financial system &#8221; King Midas is most famously remembered through the fable we tell our kids that the king could turn everything he touched into gold. At first, it was a great idea that his greed turned even food into gold, leaving him wealthy but unable&#8230;<\/p>\n","protected":false},"author":1,"featured_media":172883,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDIvNDkzYmQxNzYtZTU1Yi00MGI4LWFhM2QtODVhNTQ4YTYwMzg0LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74894,74983,75239,74868,74891,88323,75356,86706,70610,4965,70360],"class_list":["post-172882","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-blockchain","tag-decentralization","tag-decentralized-finance","tag-defi","tag-ethereum","tag-financial-systems","tag-future-of-money","tag-robinhood","tag-finance","tag-technology","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/172882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=172882"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/172882\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/172883"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=172882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=172882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=172882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}