Occasionally there are articles published about the concerns of private crypto exchanges. Private exchanges are open to the public, but are not registered with any regulatory agencies and therefore do not have the same supposed transparency as public exchanges, which are scrutinized (and controlled) by agencies such as the SEC. Some argue that the lack of regulatory oversight could increase risk for coin holders, even though private exchanges are largely decentralized.
And yet, the risks of public exchanges are often absent from those writings. The narrative is presented that government agencies are the protectors of the people and will take proactive steps to shield the masses from potential wrongdoing. The irony of this deeply flawed logic is that regulatory agencies rarely act in time to protect average people from the most egregious offenders at the highest levels of wealth and influence in society.
A perfect example of this just occurred amid the current Reddit stock rally, as major trading brokers Robinhood, E-Trade and others suddenly, and without warning, restricted roaring stocks GameStop (GME), AMC and others in the middle of a heavy trading day, and only allowed these stocks to be sold and not bought. A panic ensued and the selloff caused these stocks to temporarily plummet before they later recovered fully during extended hours trading. The official reason provided for the restrictions was due to brokers’ regulatory capital requirements which they felt were endangered by the historic trading levels experienced recently.
The fact that one of the hedge funds that suffered major losses during the recent short squeeze of GME holds a major ownership stake in Robinhood made many wonder about the potential conflict of interest. A bipartisan hearing to investigate Robinhood was announced by Congress after the debacle. The losses by those who potentially lost upwards of $300 per share in one day during the selloff will likely never be recovered due to Robinhood’s actions, despite a class-action suit filed against them by traders.
Needless to say, all this negative activity on a public exchange left a bitter taste in the mouth of many traders. These events led to overnight mass purchases of the cryptocurrency Dogecoin which is widely known as a satire coin, as its mascot is an image of a Shiba-Inu dog, affectionately referred to as ‘doge.’
Elon Musk previously tweeted months ago about Doge which led to a brief spike in the coin’s value at the time. Similarly, a brief spike in the coin’s price was experienced during overnight mass purchases. The spike was followed by a moderate selloff which lowered its price, while leaving it far above where it was previously. Musk was just added a Bitcoin hashtag to his Twitter bio, which sent Bitcoin soaring about $7000 per coin in one day to $37,000.
As most major historical events have shown, an initial spark of intense activity can lead to a substantially different and consequential outcome. For example, who would have imagined at the time of the Boston Tea Party, that a sovereign nation, the United States, would ultimately be born. The massive sudden influx of social media-fueled investing, followed by the painful realities of using public exchanges, is likely to be a turning point in widespread adoption of crypto.
While the crypto rally of a few months ago was initially fueled by large institutional coin buying, the power of individuals coordinating together at scale has the potential to drive crypto coin values higher and faster then ever before. The ‘Reddit army’ has proven to not only be willing to buy, but also to hold despite turbulence, which enables stability and growth over time.
Private exchanges, including META Exchange, stand to gain the most from these developments. The crypto community has been cheering the Reddit army on during this rally, as the principles behind the two groups intersect in many ways. As META 1 Coin was designed to be a coin for Humanity, the time is rapidly approaching when these numerous forces at play will be aligned for META 1 Coin to drive abundance and freedom for Humanity.