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The Founder of Wallstreetbets Jaime Rogozinski Discusses Defi, NFTs, and Crypto Regulation

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The Founder of Wallstreetbets Jaime Rogozinski Discusses Defi, NFTs, and Crypto Regulation

The Founder of Wallstreetbets Jaime Rogozinski Discusses Defi, NFTs, and Crypto Regulation

In 2021, the subreddit forum r/wallstreetbets, also known as Wallstreetbets (WSB) became an extremely popular forum after the members played a major role in the Gamestop short squeeze escapade. In recent times, the founder of WSB, Jaime Rogozinski has been behind a new decentralized finance project called the Wallstreetbets Dapp (wsbdapp.com). Rogozinski spoke with Bitcoin.com News this past week and he discussed the Wallstreetbets Dapp and how traditional and crypto finance are spilling over into each other.

Wallstreetbets Collides With Decentralized Finance

Just recently, Bitcoin.com News chatted with Jaime Rogozinski, the founder of the infamous Wallstreetbets forum. These days, Rogozinski is very focused on defi and the WSB founder is now behind a new defi project called the Wallstreetbets Dapp (wsbdapp.com). Rogozinski discussed the project with Bitcoin.com News in great detail, in order to give our readers some perspective of the decentralized app, exchange-traded portfolios (ETPs), non-fungible token (NFT) assets, and his thoughts about defi regulation.

Bitcoin.com News (BCN): Can you tell our readers about the Wallsteetbets Dapp and how you got involved with the idea?

Jaime Rogozinski (JR): I was invited to join on after the idea was solidly developed by the founding team to basically create this decentralized financial (defi) ecosystem. When they invited me to come on board, I decided to put my twist on trying to combine crypto with regular equities. To bring in a lot of the people that are just exclusively trading equities and realizing the huge number of tools that are available via defi and blockchain technology.

The decentralized app (wsbdapp.com), what it does is create a trading ecosystem on a blockchain with defi. We have several components that are now available and we’re constantly looking to improve the product offerings. We have socially built exchange-traded portfolios (ETPs), as community members leverage the dapp by purchasing the tokens and they can vote on which ETPs they want to create. What kind of weighting they want to put on the ETP or how they want to rebalance it.

Members of the @WSBDapp community should use your powers to make and vote on an ETP that includes the latest stock picks by members of congress.

Can’t beat ’em, join ’em

— WallStreetBets.nft (@wallstreetbets) October 2, 2021

These ETPs can have a combination of regular equities, not only the U.S. stock exchange but really any stock exchange, as well as crypto-assets like bitcoin (BTC). So the ETPs get minted and are available for anyone to purchase, not just people using the dapp either as the tokens are publicly available.

Another product we offer is single stocks, these are tokenized synthetic assets. So you can get stocks like Apple, Microsoft, or whatever type of stock you want. Individual stocks that trade 24/7 and they are available all over the world. We’re also unleashing tokenized stocks that are not synthetics. Someone goes out and purchases the underlying share, passes the dividend rights, voting rights, and all that stuff to the user. That one will be trading 20 hours a day and seven days a week.

I’m going to drop 0.2 ETH tomorrow at 6pm ET to a random wallet holding a Diamond Hands raffle ticket.

Go to https://t.co/iBhZQfviys if you don’t already have one.

— WallStreetBets.nft (@wallstreetbets) October 1, 2021

We’ve launched a couple of ETPs and we launched one this week that’s not really meant to be like an investment or like an index fund, it’s meant to be a hedge against macro-level events like inflation.

BCN: Why do you think there’s a big influx of retail investors getting into the traditional stock market today and many flocking to crypto markets too?

JR: The trends have been there for a long time. They have already been pointing out with hard facts the exponential growth of retail participants getting into the stock market and into crypto. I think there were a couple of catalysts that accelerated that pre-existing trend. We were going to get here anyway but we got here a lot faster thanks to coronavirus.

They put everyone in quarantine and turned off all entertainment, sports or whatever, and people look for something else to do. So whether they turn to it for entertainment or to make money, they turned to the stock market which is one of the few things that was available.

The second catalyst, like what we saw with Gamestop earlier this year, put the spotlight on Wallstreetbets giving people the impression that Wallstreetbets is where retail people, without really any professional training or anything, can get involved with the stock market.

I think that was a very inviting moment where it lifted the veil of sophistication and it showed, in a digestible entertaining manner, what it is like to participate in the stock market.

BCN: Some people say the stock market is in a bubble. How do you feel about that description?

JR: I don’t know that we’re in a bubble, the economy is a cycle and it goes up, and then it goes down. We’ve been in an uptrend for like 10-15 years, so I guess at some point stocks are going to go back down. I wouldn’t say that it’s a bubble because you gave a lot of participants that are flowing in and they are flowing in with various amounts of money. I think the market share just increased at this point.

People have been screaming forever that the Fed has been printing money and that’s why the stocks go up. Maybe that’s the case, but they’re still printing money and the stocks continue to go up. It’s gonna happen until it stops happening.

The same thing goes on in the crypto world I think. It goes in cycles, we’ve had a few bullish years and then we had some bearish years, and now kind of on a bull run. When exactly the cycle switches I don’t really know. It’s impossible to predict, we know that it will happen, and when it happens, it will recover again.

WSB Founder: ‘It’s Inevitable That Traditional Finance and Crypto Finance Are Merging’

BCN: Recently, the WSBdapp team released NFTs. Can you tell our readers about the WSB NFTs?

JR: With the NFTs, coming from a real traditional finance background, wanting to get into the NFTs for me was an exercise of like let’s give these things utility. Let’s make these things kinda like membership tokens. Where people purchase these tokens and get access to all sorts of benefits within our ecosystem. Like increased percentages on yield, or providing liquidity, access to special rooms, access to additional airdrops that were gonna be thrown out there with additional NFTs.

I heard someone planning to use the Diamond Hands NFT to propose, in lieu of a boomer engagement ring. Absolute boss move. pic.twitter.com/HaPrY4e4v2

— WallStreetBets.nft (@wallstreetbets) October 2, 2021

That’s my personal vision, but the team that I am working with has their perspective on the NFTs, and they say well that’s great we’ll put all that stuff there but we like the pictures, the profiles, and people really like the artwork behind it. So we’re also making sure that it has that artwork component to it. People can buy right now and basically it’s like a raffle, a maneuver to lower the gas fees to get the Diamond Hands NFT. Once people have that they will get an airdrop of additional ones that we’ve mapped out.

BCN: Were you familiar with blockchain and crypto-assets like bitcoin before WSB’s massive growth?

JR: When bitcoin first started I was aware of it and later I mined some coins and played around with it. It was really cumbersome to get involved so I became more of an observer of bitcoin and hoped that it would be adopted and become mainstream. Sure enough, it did, and the price started going up. Then at that point, it’s like a regular asset with the supply and demand and the price that gets spit out as a function of that.

I stopped paying attention to crypto for a few years. I saw that new coins would come out and read a little bit about them and said ok cool, this is a different protocol. They figured out ways around certain inefficiencies and I hadn’t realized just how powerful the world of defi had become.

Even still when I tell people I’m doing things with defi, a non crypto person’s initial reaction is are you bullish bitcoin. These defi protocols are so much more than just coins. My imagination runs wild with possibilities. It’s also inevitable that traditional finance and crypto finance are merging. We’re already seeing them spill over into each other.

BCN: In recent times, regulators have had their sights set on decentralized finance. Do you think U.S. regulators will come down on defi?

JR: I don’t know. I wouldn’t use the words come down. Right now it feels that way and antagonistic. I’m hoping the regulators learn about defi and because it legitimizes it. Right now it’s really difficult without a framework to work with. Any person that’s getting involved with this is taking a chance that it might go away or might change.

I do believe the regulators have the best interest at heart. As far as we are concerned with Wallstreetbets, we are super-positioned for regulation. Everything we do, we’re going above and beyond with audits and legal opinions, and we’re trying to anticipate what these rules might look like.

What do you think about the Wallstreetbets Dapp and our discussion with the WSB founder Jaime Rogozinski? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Twitter, WSBdapp, Jaime Rogozinski

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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PlanB Admits $98,000 November Bitcoin Price Target ‘First Miss’

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PlanB Admits $98,000 November Bitcoin Price Target ‘First Miss’

Some investors reacted angrily after PlanB admitted that his model failed to accurately predict the price of bitcoin (BTC) for November.

The popular crypto analyst aimed for a $98,000 BTC price for the end of this month. Just last week, he insisted the price target was still possible, even as markets declined.

PlanB correctly predicted BTC reaching $47,000 in August and $43,000 in September. He slightly missed the $63,000 target for October, but said the three percent “rounding error was close enough for me.”

Now the pseudonymous Dutch investor says that his $98,000 prediction for this month “will probably be a first miss,” according to a tweet posted on Nov 25. He did not give an exact reason for the failure.

“I see this miss as an outlier, a black swan, that has not occured in the data last 10 years,” he explained.

He spoke as the price of bitcoin tanked to $55,300 on Nov 23, down 20% from its record high of $69,000 reached on Nov 10. Some analysts are blaming the decline on fears of the impending Mt. Gox BTC repayments.

Bitcoin ‘stock-to-flow model still on track to $100,000’

PlanB, who claims 25 years of financial markets experience, is famed for creating the stock-to-flow (S2F) price prediction model. The model is based on the ratio of the current supply (stock) of an asset or commodity to its annual production (flow).

It can be applied to any asset with limited supply really, and the Dutch analyst did so with bitcoin in 2019. The idea is that since the bitcoin supply diminishes with every “halving” event every four years, it will create boom and bust cycles. He then uses these cycles to forecast prices.

PlanB explained that the missed November target relates only to the “floor model,” one of his three price prediction tools. Unlike the S2F, the so-called floor model relies on price and on-chain data, he says.

He insisted the stock-to-flow model had not been “affected and indeed [was] on track towards $100,000.”

Justin Stagner put the miss into perspective. “[It is] not like you just barely missed it either. I mean, its looking like you really blew this one,” he stated.

Mounting criticism

Some investors reacted angrily to PlanB’s admission of failure, blaming the crypto analyst for their financial losses.

“I used my student loans along with a short term loan using my house as collateral to go all in at $68k because you told me it would reach $98k. Now I’ll be homeless and without a degree…” complained Twitter user Brett Lethbridge.

Another lamented: “Now your stock-to-flow model is not reliable anymore. Most people incurred great losses because of your prediction.”

However, several other people replying defended PlanB, and even thanked him for his predictions. Often, they defaulted to a familiar refrain, a disclaimer of sorts, that his forecasts are “not financial advice. Do your own research.”

PlanB himself averred:

It is indeed absurd that when you publish information for free, somehow people make you responsible for their investment decisions and actions. Everybody is responsible for their own (investment) decisions and actions. Blaming others is a sign of immaturity: NGMI (not going to make it).

The Dutch analyst has faced criticism before. He’s often accused of adjusting his price predictions lower once it becomes clear that the S2F would miss its target, and be invalidated.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Bitcoin (BTC) Falls Below $56,000 After Failure to Sustain Rebound Rally

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Bitcoin (BTC) Falls Below $56,000 After Failure to Sustain Rebound Rally

After initiating a bounce on Nov 25, Bitcoin (BTC) decreased considerably the next day and is back at its weekly lows.

Since Nov 19, BTC had been hovering above the $56,500 support. This is both a horizontal support area and the 0.382 Fib retracement support level.

Yesterday, technical indicators started to show some bullish signs.

After 15 successive lower momentum bars, the MACD finally created one higher (green icon). This was a sign that the short-term trend is gradually picking steam. 

Furthermore, the RSI generated a bullish divergence (green line). This is a bullish occurrence in which a price decrease is not accompanied by the same increase in selling momentum.

However, BTC reversed its trend on Nov 26 and is in the process of creating a bearish engulfing candlestick (red icon). This is a type of bearish candlestick in which the entire previous day’s increase is negated the next day. There are still more than 15 hours until the daily close, but the start of the day looks extremely bearish.

If a breakdown were to occur, the next support area would be found at $53,250.

Short-term BTC movement

The six-hour chart shows that BTC has been decreasing under a descending resistance line since Nov 19. This is a sign that BTC is correcting.

Furthermore, BTC created a lower high relative to the price on Nov 20. This is considered a bearish sign since it didn’t have enough strength to reach its previous highs.

The even shorter-term two-hour chart shows that BTC is trading inside a symmetrical triangle and is very close to its support line, which coincides with the $56,500 horizontal support area. 

Therefore, a breakdown from it would likely accelerate the drop.

Wave count

The wave count suggests that BTC is in the C wave (red) of an A-B-C corrective structure. This means that after the correction is complete, the upward movement is expected to resume. 

The sub-wave count is shown in pink. It shows that BTC is in wave five of the correction, which is the final phase. 

There is a considerable Fib confluence between $53,250-$53,800, created by: 

  • Length of sub-wave one (pink)
  • External retracement of sub-wave four (white)
  • Length of wave A (red)

These levels also coincide with the long-term Fib support outlined in the first section. Therefore, BTC is expected to reach a low in this area before reversing.

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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South Korea Crypto P2P Trading Hits New Highs as Regulators Debate Taxation

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South Korea Crypto P2P Trading Hits New Highs as Regulators Debate Taxation

P2P crypto trading has hit a new all-time high in South Korea, data from LocalBitcoins shows. The jump in P2P trading comes at a time when there is a lot of uncertainty surrounding regulation in the country.

Peer-to-peer trading of cryptocurrencies in South Korea is hitting all-time highs as regulators offer some ambivalent comments on regulation. Data from LocalBitcoins shows that over 353 million in Korean Won was traded in the first week of November. This is a significant jump from previous weekly volumes.

South Korean P2P trading volume: Coin Dance

Pondering crypto tax

The increased interest in P2P trading comes as regulators are working on implementing a regulatory framework. South Korea, already one of the leading governments when it comes to cryptocurrency market regulation, is doubling down on its bid to prevent any illicit activity.

The high P2P volume may be a result of investors seeking to make the most of their capital as regulators bear down. Recent reports have indicated that there is some confusion among investors because of the lack of clarity surrounding regulation.

One of the primary issues is the implementation of crypto taxation. South Korea officials announced that it would tax the asset class, to the tune of 20%.

But lately, reports have suggested that there could be a change or complete repeal to this taxation scheme. The taxation law will come into effect in 2022, though it remains unclear about what specific form it will take.

NFT regulation is also throwing more confusion into the mix, as the Financial Services Commission (FSC) said in early November that it would not subject the special asset to taxation. However, later, the Vice Chairman of the organization said that tax provisions would be made for NFTs.

Uncertainty still looms

At the moment, it’s uncertain exactly what the regulatory landscape in South Korea will look like, given the lack of conclusion so far. The South Korean opposition party challenged the taxation scheme and pushed for a delay to 2023, demanding a more generous tax plan.

Exchanges are one of the major elements of the industry under the microscope, with 2021 seeing the first regulatory compliance certifications being sent to them. Several exchanges have had to shut down following regulatory scrutiny.

As it stands, it’s unclear what the specifics of crypto regulation will be. However, it’s almost certain that there will be a framework implemented, and whether or not it is stricter than investors like remains to be seen.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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