It's Time for a Crypto-Based Stock Market

January 29, 2021

Centralized exchanges have shown their true face.

Retail investors are not their customers, they are the product.

After Robinhood took the market into their own hands, we can no longer trust institutions to gatekeep when we're allowed to spend our money. It's time for us to take our finances into our own hands.

This is what crypto and DeFi were built for.

We've issued stablecoins and we've built automated market makers. The technology is here. Tokenized stocks and trading markets can be built in a matter of weeks. It's time to tear the walls down.

And while we're at it, let's end front running too.

Before Robinhood was censoring trades and saying the quiet part out loud, they were secretly selling your trades to high frequency traders.

They made sure the price you paid was always slightly worse than price you saw on screen when you clicked buy or sell. They happily took advantage of you then, and they happily do the same now.

To stop front running, you need to run your transactions on a high throughput, fast finality blockchain where miners don't have the option to hold up your transactions or sell them to opportunistic traders. In other words, you should build it on Avalanche.

Crypto can't solve all of the worlds problems, but it can make finance fair and transparent. That's much more than you can say for the current system.


© 2020 Connor Daly