The excitement created by GameStop has made its way to the crypto industry as well.
Robinhood – an online app developed for free of charge trading – was subjected to certain restrictions upon its stock trading. Resultantly, the traders turned their attention towards crypto exchanges, irrespective of whether they are centralized and/or decentralized. It was noticed by many decentralized and centralized exchanges that the sale of their native tokens has increased significantly since last week.
Binance and FTX – leading global crypto exchanges – noted that their future trading consisting of Bitcoin surged substantially. The increase of future Bitciontrading at both these exchanges was later on confirmed by Skew as well.
As a result of this unprecedented surge, Binance’s native token BNB surged for its ever highest at US$50.27 as of 1st February. On the other hand, FTX’s native token FTT too saw its ever highest value at about US$ 13 on the same day.
It is said that FTT’s and BNB’s boost maybe because of the traders coming in from Robinhood as they couldn’t do stocks trading there.
John Todaro, TradeBlock’s Director, suggested that current circumstances show even retail trading platforms/brokerages too can restrict trading without proper notice. He said that although it was quite usual for crypto exchanges but this is something new to him from the retail trading aspect. Todaro also stated that the restriction on retail trading forced traders to turn their attention towards crypto markets. This is why digital assets such as XPR, Lumens, Dogecoin, and Stellar were able to catch the week’s bid, he said.
After the GameStop drama, FTX went on to enlist a futures contract in which stocks relating to GameStop have been included. In addition, FTX also included stocks of companies such as AMC Entertainment, BlackBerry, Nokia and iShares Silver Trust etc. The idea of this contract was aimed at to capitalize on the currently growing Silver interest.
Todaro noted that FTX has enlisted equities as well on the basis of FTTs. He said that this is a smart move because investors would be thinking that traders from Robinhood too would come to FTX. However, so far FTX hasn’t given any response on Todaro’s comments.