Place/Date: Palo Alto, CA - January 29th, 2021 at 7:46 pm UTC · 2 min read
Contact: Injective Protocol, Source: Injective Protocol
Injective, the first universal DeFi protocol for fully decentralized derivatives trading, launches the first-ever decentralized GameStop trading. This arrives just as Robinhood and major US brokerages halt trading of popular retail stocks such as GameStop and AMC.
Anyone can leverage the Injective Solstice Pro network to buy stocks via USDT in a completely decentralized manner with zero gas fees. Injective enables 1-second block times and instant finality, leading to unparalleled scalability and speed. Injective is also able to provide 24/7 access to futures trading, which is typically not possible in traditional brokerages.
Stocks such as GameStop have been catapulted to astronomical levels largely by a sub Reddit called Wall Street Bets. Here, retail investors banded together to purchase stocks that have high short interest from institutional investors. This frenzy eventually led to a massive short squeeze, leading to firms such as Point 72 and Melvin Capital with large short positions to lose billions in the matter of days.
The matter was further exacerbated when major brokerages such as Robinhood halted trading of these stocks after citing “internal issues”. Real investors had their long positions closed, while Robinhood faced backlash from all corners of the world. Interestingly, NY Congresswoman Alexandria Ocasio-Cortez (AOC) and Texas Senator Ted Cruz found common ground in also calling for Robinhood to be investigated.
Injective seeks to reverse this centralized model and allow trading of stock futures 24/7. They have already listed giants such as Tesla, Amazon, and Twitter on their platform. The addition of GameStop presents a brand new opportunity for traditional finance to be introduced into the rising DeFi sector.
Injective Protocol is the first layer-2 decentralized exchange protocol that unlocks the full potential of decentralized derivatives and borderless DeFi. Injective Protocol enables fully decentralized trading without any restrictions, allowing individuals to trade on any derivative market of their choosing. Injective Protocol was incubated by Binance Labs and backed by $3M in funding from Pantera, Binance, Hashed, and other notable investors.