We are winding down for the listing of Coinbase , which will start with the COIN symbol on the NASDAQ and which will lead to the first major "Crossroads" between the stock market and virtual currency finance. Recall that Coinbase is one of the largest exchanges in the world, with 800 million revenues in the first quarter of 2021, a growth of 117% in the number of customers compared to the previous quarter and an offer that will not be an IPO, but a DMO, that is an offer on the market of existing shares, so we will not have dilution of capital and distributed profits. The outlook is positive, but care must be taken in markets that are nervous, full of liquidity but able to move it at the speed of light. The case of the Deliveroo flop in London is right there to show us. Much will depend on the innovative quality of Coinbase and, above all, on its ability to act in a "User Friendly" way, without wrapping members in red tape.
While innovative finance is grafted onto ordinary finance, on the other hand the token and crypto world enters the traditional world by force.
The Binance exchange now allows its users to purchase fractions of company shares with a new tokenized share exchange service, with Tesla among the leading financial products.
The cryptocurrency exchange announced on Monday the launch of Binance Stock Tokens, zero-fee digital tokens that allow holders to access all returns including dividends. Users will be able to purchase fractions of actual Tesla stock, trading at $ 677 per share at the time of writing.
Users will also be able to buy one cent of a Tesla share, with prices set in Binance USD (BUSD).
It is not the first tokenized stock play in the world of cryptocurrencies: the Terra Labs Mirror Protocol is operational in the same sector since last December,
but while Mirror uses synthetic stocks (or tokenized representations of real stocks), the Binance product is “backed by an underlying securities custody portfolio” managed by an investment firm in Germany. So behind Binance i's Tesla tokens is an effective collateral.
These crossovers between the crypto world and ordinary finance will lead to a series of positive and negative results, to be considered:
- funds that until yesterday invested in ETFs can invest in tokenized stocks or securities, bringing more liquidity;
- traditional finance investors can indirectly invest in the world of crypto by placing their funds on the securities, listed on the NASDAQ, of an exchange;
- the links between the two worlds will guarantee on the one hand more returns, but many more risks, to hedge funds. We will also be able to see very high multipliers on innovative finance stocks. How positive will this increase in risk and greed be?
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/cripto-arria-la-quotazione-coinbase-e-binance-permette-di-trattare-azioni-su-token-borse-ed-exchnge-si-mescolano/ on Tue, 13 Apr 2021 08:00:00 +0000.