WallStreetBets, the online community on Reddit, was one of the many central characters that played out in the run-up of GameStop Corp. (NYSE:GME) shares. The founder of the popular online community is out with news Tuesday about a new product launch.
What Happened: WallStreetBets founder Jaime Rogozinski is among the team using blockchain-powered applications to decentralize indices. The product is aimed at combating “market manipulation” in traditional finance.
The novel product is made possible with a decentralized autonomous organization (DAO).
“Prominent figures within the WallStreetBets community have been working with experts in blockchain and fintech technology to create what is known as exchange-traded portfolios, or ETPs,” the press release reads.
See also: What is Blockchain?
Retail investors will be able to get exposure to the ETPs and also contribute to the weighting of items featured in the indices.
“The amalgamation of blockchain technology with financial markets is the next logical step for finance,” Rogozinski said. The founder of WallStreetBets will serve as a strategic partner on the DApp project.
WallStreetBets DApp will be governed by its owns $WSB token. Holders of the token will be able to vote on rebalancing and exposure to certain securities.
Why It’s Important: ETPs are similar to index funds, but in this case are run with a decentralized focus. The control over ETP rebalancing will be placed in the hands of community members with voting rights.
“It will result in stronger, more democratized markets and will empower individuals around the world,” Rogozinski said.
WallStreetBets has been widely followed by retail traders for years. After the impact the community had on the GameStop stock movement, financial media and institutional investors have taken note of the impact WallStreetBets can have on stocks mentioned and loved by the community.
“We aim to simply exit the existing system for one that is fair and relies on community,” said BTCVIX, CEO of WallStreetBets DApp.
The new exchange-traded portfolios will likely garner attention on what initial holdings are selected and on subsequent rebalances.
Rogozinski is not currently affiliated with the WallStreetBets subreddit so it could be interesting to see if this product catches on with the community or creates a further divide between community leaders.