I think this is illegal. This is effectively a CFD, which are absolutely illegal in the US regulated or not.
Fake Tesla, Apple stocks have started trading on blockchains
21–30 of 361 posts
Re: Fake Tesla, Apple stocks have started trading on blockchains
#22Looks like cryptocurrencies are not very innovative. They keep reinstalling all the features that have been there and improved in the regular markets. Tether and stablecoins mimicking the USD, now this stuff mimicking stocks, how are the not getting in trouble with government institutions or Apple? What are the loopholes? No existing laws yet? Or they operate and reside in far away jurisdictions?
A crypto-token tracking the listed security of a company that is itself so heavily invested in crypto that the security price more or less tracks with crypto reminds me of the new new internet from Silicon Valley.
Re: Fake Tesla, Apple stocks have started trading on blockchains
#23Earlier quoted context omitted.
> But to oversimplify, under the Mirror Protocol, the idea is to keep prices of the synthetic -- or “mirrored” -- equities in the ballpark of the real thing by offering incentives for traders to arbitrage price discrepancies and manage the actual supply of tokens. Users can create, or “mint,” new tokens when prices are too high by posting collateral, and destroy, or “burn,” tokens when prices are too low, driving the…
It’s the redemption of the real underlying that allows ETFs to work.
Yes, its important for tracking that authorized participants are able to both create and redeem the ETFs for the underlying. This is why the Grayscale family does such a god-awful job of tracking the underlying. Check out the premium over time. [1]
I suspect these are more like perpetual futures or CFDs?
[1] https://ycharts.com/companies/GBTC/discount_or_premium_to_na...
Re: Fake Tesla, Apple stocks have started trading on blockchains
#24Calling synthentic assets - something otherwise fully embraced by traditional finance - 'fake stocks' repeatedly lets me think they might have had some sort of an agenda on this one.. Disclosure: I have personally invested small sums in the mentioned SNX and MIR.
"Fake stocks" does make it sound like the users are being mislead into thinking that they are buying actual stocks. Which doesn't seem to be the case.
Re: Fake Tesla, Apple stocks have started trading on blockchains
#25Earlier quoted context omitted.
Investing in crypto projects is the same like investing in dot com companies back in the day. You invest in concepts not in the actual product or solution and ofc 99% of these projects are unrealistic or team behind them is incompetent.
No. There's a big difference. When Webvan went bankrupt, they truly bought all of those warehouses / refrigerated vans. They were honest about their business idea. When "Africrypt" (a recent Crypto group) stole $3.6 Billion from its customers, that's straight up fraud and would not stand even back in the dot-com boom in the 90s. That's the sort of thing US Regulators are trying to protect investors from. ---------- Y…
I agree with you on Webvan but Theranos was pure fraud.
The so called "Crypto" industry will mature when regulation happens and when real cryptographers and real computer scientists enter the scene and start innovating. Until then we have hyped up teens playing with the buzzwords like blockchain and decentralized finance.
>The size and scope of the scams currently going on in the Blockchain world is far worse than what happens in US regulated markets.
I somewhat tend to believe that governments all around the world are giving the "Blockchain world" grace period of not being tightly regulated so they can catch as many crypto criminals as they can because let's be honest if these guys were not stealing in the crypto world they would be stealing somewhere else. And I also tend to believe that current financial regulations are enough to regulate crypto as it is but governments are moving slowly as usual.
Re: Fake Tesla, Apple stocks have started trading on blockchains
#26How does this make sense? If they don't hold the underlying security, where does the value come from?
This feel like it's another one of those "while money is flowing in it'll work, but if there's a run, it crashes spectacularly". If the liquidity dries up, i end up owning nothing. With a real security at least i end up owning a small part of apple, but here i literally own nothing.
Re: Fake Tesla, Apple stocks have started trading on blockchains
#27Benefits:
24/7, lower fees, less financial incumbent insiders front running your trades, less retail traders giving data of their every move to financial incumbent insiders, privacy.
I think this'll be adopted widely in the near-future by savvy traders.
It benefits the little guys.
And I look forward to the day companies preferably issue equity directly atop decentralized networks - under what legal framework and/or sovereignty is yet to be determined.
Re: Fake Tesla, Apple stocks have started trading on blockchains
#28Benefits: 24/7, lower fees, less financial incumbent insiders front running your trades, less retail traders giving data of their every move to financial incumbent insiders, privacy. I think this'll be adopted widely in the near-future by savvy traders. It benefits the little guys. And I look forward to the day companies preferably issue equity directly atop decentralized networks - under what legal framework and/or…
Not in America they won't lol, it's illegal. In fact it's illegal for US persons to trade securities out of a non-SEC regulated brokerage account. See Regulation S.
Isn't the new monetization strategy in crypto literally to reorder blocks and front-run transactions due to the massive time quanta?
How exactly do you think the NBBO rule is to be implemented? [1]
The little guys as always are the most likely to get hurt.
Re: Fake Tesla, Apple stocks have started trading on blockchains
#29Looks like cryptocurrencies are not very innovative. They keep reinstalling all the features that have been there and improved in the regular markets. Tether and stablecoins mimicking the USD, now this stuff mimicking stocks, how are the not getting in trouble with government institutions or Apple? What are the loopholes? No existing laws yet? Or they operate and reside in far away jurisdictions?
I don't think there's any political interest in looking at them right now. It's largely just a bunch of nerds playing with pretend money. It hasn't really hurt anybody outside of it yet.
Re: Fake Tesla, Apple stocks have started trading on blockchains
#30Bitcoin enthusiasts are learning first hand why financial regulations exist. It's a shame we can't seem to learn from history.