CMORQ’s Hossein Azari Discusses Memes Stocks, Sees DeFi As An Answer To Retailer Desires


The rise of “memes stocks” has been a fascinating adventure with the combination of ubiquitous technology and the ability to stimulate trade by retail investors in a way never seen before. While some manipulation of the markets has always existed, the recent advent of trading forums, like Wallstreetbets on Reddit, and other methods of digital communication, has shifted some of the influence from big capital to small investors. pooling their resources.

The phenomenon really gained momentum when GameStop (NYSE: GME), a stock heavily shorted by some hedge funds, has become the focus of a targeted short squeeze. In short, small investors, many of whom trade on Robinhood, have skyrocketed the price of GME, causing some hedge funds to lose money in a classic short squeeze.

More recently, the actions of AMC Entertainment (NYSE: AMC) have caught the attention of retail traders who have pushed its stock price to stratospheric values.

Of course, regulators and policymakers have not ignored all of this and there is always a risk that the federal authorities will step up and try to rule the market. The consequences of any regulatory or legislative action obviously remain unknown.

This week, Crowdfund Insider speak with Hossein Azari, founder and CEO of cmorq – creators of a crypto application currently available on the Apple App Store.

Azari is a former Google science researcher and co-founder of Clarity Money (acquired by Goldman Sachs) with a PhD in computer science from Harvard. We asked Azari for his take on Memes Stocks and why he thinks DeFi is part of the solution.

Public markets have always been manipulated in certain situations. Is the rise in equities even just allowing small investors to step in?

Hossein Azari: For years, the discussion around personal finance has long been a taboo and a private secret among the investor class, leaving consumers in the dark. The rise of meme stocks, strongly driven by this new generation of Reddit and Robinhood users, has allowed a new generation of investors to share this discussion around personal finance. Meme stocks simply provide an entry pass for small investors into the game. Opportunities and inclusive capitalism will always be the recipe for success.

Public markets are broken or just taking a detour? When stock prices do little to reflect the value of the company, does it undermine confidence in regulated trading?

Hossein Azari: Community, community, community. Certainly stock price is a factor in the value of a business, but if a community wants a business to survive, it will.

The problem with this concept of community providing endurance is that we just don’t know how to accurately assess it in the market yet. This does not mean a break in the market, but rather a detour or an evolution of some sort. We see this development with the current retail frenzy. Retail markets are evolving towards community participation and, at the same time, thriving.

Isn’t it a bit similar to ICO / IEO etc. who have seen a musical chair type scenario where some have benefited and others lost?

Hossein Azari: Yes, but it should not lead to the same zero-sum game. There is a way to achieve what I would call “inclusive capitalism”. We see this idea of ​​inclusive capitalism in the tech sector. The technological success has been driven by a consumer-centric approach. Platforms that distribute resources and opportunities to promote general well-being will thrive, while quickly get richer, and pumping and dumping platforms will eventually disappear.

And what about regulators? Should they be doing something or will they only make it worse?

Hossein Azari: Regulation, whether in the technology sector or any other sector, will always be at the center of everyone’s concerns. In this case, DeFi is off and running, so naturally the regulation is in place. So early in the game, however, it is too early to know whether or not regulation is necessary, and if, in what form. As we move forward, the question of regulation will most likely find a natural answer.

And why shouldn’t retail be able to play a game similar to hedge?

Hossein Azari: They definitely should, and not only should they, but I imagine they will.

There is a growing set of platforms that allow a retail investor to be as effective as a hedge fund. The role of retail will only grow as they learn how to build wealth. The creation of wealth for the masses, whether in finance, real estate or trade, is a major achievement, which should be encouraged, whatever the sector.

Do you think DeFi is the answer for retail? Please explain.

Hossein Azari: Defi is definitely the answer for retail for a number of reasons. First of all, it empowers the consumer and, in turn, creates a positive feedback loop, where, as a result, the institutions that distribute power instead of consolidating it earn.

Second, it allows better access to capital markets for all. The investor class no longer has access to these extremely prosperous markets, but the ordinary investor can now share in the wealth and success.

Finally, there are more people with Internet access than banks in the world. According to the World Bank, 1.7 billion adults do not have access to banking services, yet 48% of people in the world have smartphones. DeFi, for all the reasons discussed above, and many more, is changing the way people live, providing them with a way to transact securely online and guarantee financial gains.

You also believe that the United States will lead. Do you expect this under the current administration? And the Congress?

Hossein Azari: The United States will continue to lead as it always has. Whether it is this administration or the many administrations to come, the United States has always led the modern world to shift from the old ways of doing things to new and practical ways that put people first. From the declaration of independence to the defeat of the Axis Powers, the United States has always led and will always continue to lead. The next frontier to come is to bring more freedom to the peoples of the world by enabling inclusive capitalism, and this effort will largely be carried out with the United States in the lead.


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