WallStreetBets Launches Blockchain-Powered Exchange Traded Portfolios, Ran Through A DAO
Popular Reddit community WallStreetBets has announced a new product launch dubbed WSB DApp. The group plans to create a blockchain-based app aimed at combating market manipulation in traditional finance.
WallStreetBets Introduces WSB DApp
This will see the largely pseudonymous WallStreetBets group move into the world of decentralization and blockchain-based finance.
The initiative would be run through a decentralized autonomous organization (DAO), which is a non-hierarchical group that votes collectively on how to run a company and allocate resources based on community decisions.
According to the press release by prominent figures in WSB, including founder Jaime Rogozinski, WSB has been working with blockchain experts to build exchange-traded portfolios (ETPs), which, unlike index funds, can be easily decentralized.
“Moreover, by harnessing the transparency and community consensus mechanisms provided by blockchain and smart contract technology, WallStreetBets ETPs may serve as an alternative to the kind of market manipulation perpetuated by opaque and politically connected banks and hedge funds.”
WSB recently launched the $WSB token on community-focused fundraising platform BSCstarter through an initial dex offering (IDO).
The Token offering became eligible following votes from the BSCstarter community. The $WSB token would be used by holders to vote on how and when to rebalance a portfolio of stock investments.
WallStreetBets Gaining Momentum
The group has gone from just being a subreddit group to a worldwide phenomenon seemingly overnight. WSB, which started with the Occupy Movement, has now gained a massive organic following on social platforms without formal leadership.
The unofficial group gained fame after crippling hedge funds by short squeezing GameStop through a coordinated move.
Now it is taking a big step toward blockchain-based finance, which is a different path from the group’s original aim of ending dependence on corrupt institutions in finance.
Meanwhile, Bloomberg reports that members of the WSB forum were recently targeted in a cryptocurrency scam that resulted in $2 million in losses.
An account called “WallStreetBets – Crypto Pumps” using the Telegram messaging service offered users the chance to buy tokens known as WSB Finance before it was listed on crypto exchanges.
However, those coins were never delivered; instead, a second message was sent out telling those who had already sent a payment that they’d have to send an equal amount again or lose their initial investment because of a problem with the bot.