- Jaime Rogozinski says the establishment of harambe across from the Wall Street cop was a powerful symbol.
- He is turning to blockchain to fight what he calls market manipulation.
- He says there is another approach to making money from them when you can’t beat them.
A six-foot statue of Harambe, the gorilla who was shot to death at the Cincinnati Zoo in 2016 after a three-year-old boy fell into its compound, was recently placed on Wall Street across from the iconic bull.
The stunt involving thousands of bananas was performed by co-founders of the private social platform Sapien.Network. They wanted to contrast the powerless gorilla with the angry bull to illustrate the wealth gap between Wall Street and the general public.
The mammal has become another symbol of vulnerability. For example, retail investors in the Wall Street Bets movement, who had banded together to buy stocks that hedge funds had sold badly short, referred to themselves as monkeys.
Jaime Rogozinski, the founder of Wall Street Bets, called it an important statement. Its movement began as a subreddit for ordinary investors, driving GameStop and then AMC stock prices astronomically high. The result was short squeeze, which resulted in heavy losses for hedge funds betting against these stocks.
“Traditionally there are bears and bulls. Now there are monkeys who are just individuals who feel empowered,” said Rogozinski. “They found a way to raise their voices on Wall Street in ways they couldn’t and were frustrated over a decade ago.”
But now Rogozinski says the movement is being misunderstood internally and externally, including by the regulatory authorities. He referred to the long-awaited report by the Securities and Exchange Commission on the GameStop frenzy, released last week, which outlines the market forces that have bred the mania but made few specific policy recommendations.
Rogozinski said the SEC’s report also signals that regulators have also missed the point. He told Insiders that he felt the report marginalized retail investors because the SEC failed to highlight issues that would protect them.
Instead, the report emphasized things like confetti animations on the app and asked if this encouraged people to act more than normal.
“And that’s insulting. It misses the point,” said Rogozinski. “You can’t assume that these retailers will buy something because they’ll be rewarded with a confetti animation.” Robinhood removed the animation in March.
On the flip side, issues with the settlement process, dark pool issue or short selling would have easier recommendations, he said, adding that the report only suggested doing more research and reporting on it.
“The [WSB] Movement has always been important, let’s improve this system, ”said Rogozinski. “A lot is wrong and we have to improve it.
Rogozinski said what needs to be addressed more vigorously is what he calls market manipulation, in which participants try to cheat or take advantage of the structure of the market to move prices, he said. A previous statement by his company claimed that it is “run by opaque and politically affiliated banks and hedge funds”.
As an example, he cited the 2010 Flash crash, which destroyed a market value of $ 1 trillion within an hour. The case revolved around a single trader manipulating the market with a software algorithm from his bedroom. The strategy that trades makes milliseconds before other orders is used by many high frequency traders.
Rogozinski believes blockchain technology and DeFi could do many things better than traditional Wall Street, including improved accessibility for retail investors and the ability to trade around the clock. And so he carries his fight to the blockchain.
The project is called WallStreetBets Decentralized Application or DApp. And it’s controlled by its native crypto, the $ WSB governance token.
So-called exchange traded portfolios are planned in the app. These ETPs are like ETFs, but based on community consensus over a blockchain. For example, members could use their $ WSB token to vote on how much of a particular stock a particular ETP thinks.
The ETPs could combine assets from crypto, stocks, and ETFs. Smart contracts would provide the ability to set terms and transactions in real time and bypass the bureaucracy associated with realigning an ETF. In a previous statement, Rogozinski said it was a way to completely end dependence on institutions.
The plan is to even allow ETPs to track portfolios like that of US House Representative Nancy Pelosi and her husband, Rogozinski said. The ETP would simply adjust every time the pelosis made a trade.
The sentiment of trading by counterfeiting stocks Congressmen buy ignited on TikTok. Content creators began to notice trades that were executed just before important news and guidelines emerged that would affect a stock. And if it does, Rogozinski doesn’t think this type of trading will stop anytime soon.
“I could complain about it, or I could make money too. And that’s kind of a Wall Street bets approach, that is, I could sit out there with a camping tent and a pitchfork or a sign, or I could make some” money “said Rogozinski.