191–200 of 361 posts
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crypto already allows one to buy AAPL token, privately, at 3am EST, for a ~$.1-$5 tx fee. Not bad for the 1st decade of a long story.
Except you aren’t actually buying ownership of AAPL. You don’t get any voting power or dividends. You are buying a token that the creator pinky promises are worth/redeemable for x shares of AAPL. Those AAPL tokens are not insured by the SIPC…
So what generates these "synthetic" stocks? It doesn't sound like futures or simple bets. From the article, its almost sounds like they're almost selling NFTs of a photograph of a stock created form whole cloth. That can't be right, can it? Surely its backed by something?
Like the rest of the blockchain?
The stocks are not backed in any other way?
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>> Users can trade the tokens anonymously 24 hours a day, seven days a week, from anywhere, unhindered by capital controls, “know your client” rules imposed on broker-dealers, and other frictions of the traditional financial system. > These are certainly new innovations and features, be they good or bad. That's saying a car with its seat belts removed has an "innovative new feature." The usual word for that situation…
"capital controls" only don't seem like a big deal because you presumably live under a government which you trust, which allows allows cross-border money flows, and which has a relatively stable currency. For much or most of the world, that isn't true.
So what generates these "synthetic" stocks? It doesn't sound like futures or simple bets. From the article, its almost sounds like they're almost selling NFTs of a photograph of a stock created form whole cloth. That can't be right, can it? Surely its backed by something?
Like the rest of the blockchain?
Can anyone explain why regulators wouldn't just smack this down if got big? I can't imagine you can create a mirror stock market without going through some regulatory channels.
Scoring before the cops figure out a crime is being committed IS intuitive, in other words.
Many people are asking: Why government should regulate finance? In the US you should look at the so-called free-banking era (1837–1864) or the crisis era (1782–1930). Btw. Free banking didn't mean no rules. It just meant that there was no charter or permission is needed to start a bank, Finance was basically free for all. Easy to get in. Constant stream of economic recessions and banking crises harmed everyone. Wildc…
>Finance was basically free for all. Easy to get in. Constant stream of economic recessions and banking crises harmed everyone. Wildcat banking increased incentives for risk-taking and fraud to high levels. It hindered economic growth, destroyed wealth of may hard working individuals.
This is untrue; the US rate of growth was actually higher during this period (4%+) than it was during the 1900s. And there was way less wealth equality, as there was no central bank with the ability to transfer wealth from all currency holders to the banking and finance industry via printing money and the Cantillon effect.
The basic idea is that bets are collateralized at a level of 150% of the starting price. If you buy a synthetic stock when it's at 100, and it goes above 150, your bet is cashed out at that point. As usual, the big question is, what's the collateral? In this case it's their very own private stablecoin, Terra, which pays an annual percentage rate of 17%. That, in turn, is being paid by people who are borrowing that st…
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Do you mean he's sophisticated in the general usage of the word or in the financial usage? The financial version tends to mean "has a lot of money."
Definitely that, but also the man is an investor. He should have both the knowledge and the money.
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> We don't call corn futures fake corn /ZC is physically settled[0], so that’s not a great example. /ES (S&P 500) or other index futures that are cash-settled is a better analogy. They’re also, yknow, regulated[1]. [0] https://www.cmegroup.com/markets/agriculture/oilseeds/corn.c... [1] https://www.cftc.gov/
Yeah, I would like to emphasize the fact that they're settled once individual contracts expire, be it cash or delivery. I am yet to find a useful derivative that lacks a settling mechanism. How would you even price such a contract that lacks settling? Like why should it be worth anything at all?