American Senator Says Blockchain Can Fix Stock Manipulation

American Senator Cynthia Lummis believes that blockchain technology can fix and prevent stock manipulation in the future after the Gamestop chaos that emerged on Wall Street so let’s read more in today’s blockchain news.

The “gamestonk” hit the $450 price level a day ago before corrupt companies clamped down on its trading. However, American senator Cynthia Lummis thinks that this could all be avoided if we used blockchain technology. The senator said that blockchain technology will fix the rampant stock manipulation that happens on the financial markets. Lummis represented the people of Wyoming in the United States and is in office for a month now. She’s now rooting for blockchain technology in order to fight corruption. Lummis said:

 “What happened with #GameStop this week is basically unprecedented. At one point, there were 38% MORE outstanding claims to GameStop stock than stock that actually existed! Good news: we can fix this with #blockchain”

Lummis continued saying that if shares of the stocks are issued on the blockchain the retail investors will bring their own shares of stock and the tech will also make Wall Street even more efficient while the regulators like the US SEC are able to accurately monitor the market. The statements came once Robinhood stopped the purchase of GameStop shares a day ago and retail traders from Reddit’s forum WallstreetBets boosted the prices up to $450. The price surge caused implications for companies like Robinhood that are betting against the prices for GME for a profit.

In a similar case of corruption, Robinhood blocked the purchase of shares and led the prices down which was a move slammed by politicians, business leaders, and the rest of the retail trading industry. These included politicians like Alexandra Ocasio Cortez who said that the public deserves to know about Robinhood’s decision to block the retail investors from buying stocks while hedge funds are able to trade the stocks as they see fit.

What happened with #GameStop this week is basically unprecedented. At one point, there were 38% MORE outstanding claims to GameStop stock than stock that actually existed! Good news: we can fix this with #blockchain

— Senator Cynthia Lummis (@SenLummis) January 29, 2021

In the meantime, many on Twitter stated that the general public was likely to pay more attention to the crypto space now that the corruption and low support for the smaller traders are being exposed. Gamestop is a video game retailer that was short over 140 percent of the stock’s float by huge hedge funds which expected the stocks to go down. Retail investors on WallStreetBets which is the famous trading subreddit took notice of the trend and started buying on the stock. The stock skyrocketed and culminated in a huge squeeze higher over the past week.