3 months ago
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Prominent figures like Gurbacs are using this event to highlight perceived inconsistencies in regulatory practices.
The recent buzz around the GameStop meme stock has once again brought back discussions about the disparities between traditional finance (TradFi) and cryptocurrency. This follows after VanEck advisor Gabor Gurbacs recently took to social media to criticize TradFi.
Gurbacs cited that there is an obvious double standard at play considering the level of regulatory heat that the crypto industry faces. That is, as opposed to the scrutiny that is usually directed towards the stock market. Gurbacs noted that this should not be so since similar market volatility also plays out in the stock market.
He referenced GameStop stock price, which recently rallied over 40% shortly after popular retail investor Keith Gill (Roaring Kitty) made an announcement.
Around the same time, there was a nearly 99% drop in Berkshire Hathaway’s stock. According to Gurbacs, this means that any criticisms that regulators have ever had against Bitcoin do not hold water. In view of the reality that certain TradFi assets escape intense regulatory pressure unlike Bitcoin, then there is some bias, he suggested. Summarily, he wrote:
“The TradFi system is way worse than Bitcoin exchanges and the ecosystem at large.”
Meanwhile, Gurbacs’ sentiments are widely echoed throughout the crypto community.It is widely believed that regulators are more tolerant to traditional finance despite the seemingly similar market dynamics.
GameStop Stock Rally Reflects Regulatory Disparity between Meme Stocks and Crypto
As earlier mentioned, this existing debate has been further heated up by GameStop’s recent rally. Data from Nasdaq shows the stock price closing at $46.55, representing a 47.45% increase. Besides, GameStop is not the only meme coin rallying. Another Solana-based meme coin inspired by GameStop, but not affiliated with it, is also posting massive gains. The “GME” token has rallied over 172% in the same period, highlighting the potential for even more volatility within the meme-stock-inspired crypto space.
As the GameStop frenzy continues, TradFi and Decentralized Finance (DeFi) enthusiasts continue to air their varied opinions. Prominent figures like Gurbacs are using this event to highlight perceived inconsistencies in regulatory practices. There may be a takeaway from the war of words, though. These discussions are poised to fuel further debate and possibly lead to positive initiatives and development, particularly with respect to regulating digital assets.
Nonetheless, the war between DeFi and TradFi enthusiasts continues, with prominencies further voicing their opinions.
