Community Based Investing – A Paradigm Shift For The Markets

Millions of people worldwide are seeking to break free from the old way of investing. Today, investors have charts, real-time news, communities and commission-free trading platforms guiding their financial decisions and behaviors. The average person no longer requires the permission of an advisor or broker to participate in the markets. 

Interference from broker-dealer intermediaries is one remaining hurdle, and millions of investors seeking a better alternative are turning to crypto markets

Crypto markets have democratized information sharing, provided open, 24/7/365 access to investments, enabled new opportunities for startup investing and allowed stakeholders a vote in the direction of innovative companies. 

We sat down with Jeremy Welch, Kraken’s Chief Product Officer, to analyze many of the latest market developments and learn what is so compelling about crypto markets.

In this interview, we think you’ll find some unique insights into community based investing, the influences of entrepreneur investors and what advantages crypto markets provide to consumers.

Jeremy, many narratives and conspiracy theories with stocks like GameStop, AMC, Bed Bath & Beyond emerged after their short squeezes – do you give credence to any of them?

There is a line of thinking that what we’re seeing is ‘Main Street’ traders changing the game versus ‘Wall Street’ suits flexing their muscle – I think that probably holds some weight. It’s interesting to think of a financial market as a composite of different communities. There’s something unique about crypto as a community of people that have bought into a currency or an idea. 

The classic view of a shareholder – someone who buys stock in a company because they believe in the business – definitely supports some of the behavior that we’re seeing. A lot of those traders believe in, or identify, with those companies. In a sense just talking about shareholder rights reminds me of the communities that…

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