Since the Dutch East India Co.’s public share offering in 1602, public markets have allowed for people of all walks of life to help cultivate, contribute, and profit from a capitalistic system that has pulled many out of poverty. Over time, technological innovations have made markets more advanced and the barriers to entry continue to fall.
At a $1.3T market capitalization and counting, the evolving cryptoasset market enables anyone with an internet connection to participate side-by-side with multi-billion dollar institutions on the same platforms and using the same open-source, publicly-available information found on a public blockchain, Github, Twitter, and other public platforms. The crypto market is transparent and open to all, and has not had the types of recent mishaps in the traditional financial markets.
Accordingly, in light of recent events of the US equity market regarding Gamestop (GME) and Main street vs. Wall Street, this report explains the structural differences between crypto and traditional financial markets, using GME as an example. Specifically, it tackles the inefficiencies of traditional financial markets – how it may give competitive advantages to those with deep pockets and how technological advancements in the cryptoasset market will spill over in traditional markets as the old catches up with the new.