Regulations for exchanges have really been a boost for them. Did you know you can now trade real world assets (RWA) on these platforms? For instance, check out TSLAX and GOOGLX.
I noticed something new recently on an exchange: TradiFi, which seems to be actual stock trading like TSLA, the real Tesla stock. Someone correct me if I'm mistaken.
What’s your take on this? Which one would you rather trade, TSLAX or TSLA? TSLAX is basically a token version of TSLA but it's traded on spot and futures markets, while TSLA is on that TradiFi exchange I came across.
Once again speculative trading is proven as gambling by these!
When these are not at all hitting the actually exchange like Nastaq or NYSE, we are literally betting on them like whether they will rise or fall.
Your question of which one to be preferred will not be a big concern for traders here because they will trade whatever available in their favourite exchange or will sign up in a new exchange to start with. Otherwise volume or spread will be a constrain to choose which exchange.
Even, these sounds like a good idea to trade real world assets, I feel like you always need to be ready for announcements of ceasing operations due to regulation or hack.
Personally I prefer a regulated brokers to trade/invest with the real assets definitely not in tokenized form.
I like both of them, but tokenized stock usually have low liquidity that's why i'm still using stock app specifically tailored for stock trading.
Try to see TSLAX pair across various exchange even in bybit it only got $221k volume with 20k 2% depth. That's a huge slippage right there.
That aside though, it's good seeing we can rotate to stock as easy as just swapping our cryptos at the very least.
I am not talking about tokenized stocks. See example of what I am talking about:
The TradiFi is different from the tokenized stocks. The TradiFi is through a third party.
But what I noticed about it is that the volume is not displayed and which makes it not transparent.
I think the trading volume may be very low.
In my case, I see no issue with these CEXs introducing tokenized assets, infact being able to switch between stocks and crypto trading is a good and quick idea. And I get where youre coming from about them kinda been speculative since they dont hit the NYSE or Nasdaq directly but I don't quite agree with that.
But these upgrades are worth checking out, especially for traders since most them come with rewards. Even decided to check them out on Bitget when I noticed more exchanges adding them. Realized there is an ongoing phase 2 of the stock futures event with $400k in TSLA rewards and every trade counts whether you go long or short.
I thought I have posted already that TradeFi is different from stockx. Stockx are tokenized RWA, unlike TradeFi that is done through third party on Bybit.
I also do not see nothing wrong with stockx but some people will prefer to trade the real assets than the tokenized ones. The real stocks have higher liquidity and marketcap and it is the real asset and not what can be depegged.
While we are looking at it from a regulatory perspective, I am looking at it from a perspective where we are loosing more and more freedom to trade and won assets each passing day
Exchanges are going to get more strict thanks to "regulations" where we will be asked how much we earn per month, who our employers, what they physical addresses or our offices are etc.
I kind of prefer the old school crypto exchange days. Just trade your Bitcoins without any much snooping. Now we have these assets allover crypto exchanges, bringing in more scrutiny.
This type of risk is associated with every coin and token, right? Nothing new just to because of tokenized the real world assets, right? Then, I would see it is just another opportunity to trade real world stock but within my crypto exchange itself. Moreover you need to make sure that you are not here investing with real world stock but you are only going to trade and you need to withdraw your capital and profits time to time rather than keep on holding within exchange because this is one of the risk management principle for how a crypto people must practice against exchanges.
Even I am already investing in stock markets along with bitcoin, I feel like this would be a milestone effort for this crypto space. People who want to trade stocks but not having access due to regulations and other restrictions, now may get access which is a great leap for crypto space in my opinion.
One thing still matters. LIQUIDITY, and so far, the liquidity of these tokenized stocks is low and and as a trader, we don't want to trade on a token that has a low liquidity so because of that, I think most traders will still prefer to trade on those Exchanges where the REAL stock has been listed.
I just looked at TSLAX and GOOGLX on MEXC and they have a 24-trading volume of around 50-60k. I don't know if these are listed on other CEXes as well, but bottom line is I don't want to trade low-volume tokens like these 2. There are way more options out there to trade for.
Have seen exchanges like Bitget, Binance and okx already leading here. Another feature that has attracted botg sides of the divides is the stock futures on exchanges. It' just that I'm still learing how they handle funding rates in futures trades especially during weekends when the stock markets are closed
I don't think regulation can hold them back in this matter, because they are dealing with trading and investing, among others. So, they can add whatever they like to it, it's their choice. Just as in the traditional brokerage, they keep on adding whatever they like, which also includes cryprocurrency. All I know is that establishments like to follow themselves like a trend/pattern.
Traditional brokerage are in trouble about this, especially the retail ones, because crypto exchanges are increasingly becoming more popular than them. They will snatch their customers. Now you can trade Gold and FX (not tokenised) on Bybit TradeFi. I wasn't surprised when I saw that though, because Ben Zhou, who is the CEO had worked with XM.
Have been saying this for some time now, exchanges venture into stock trading and RWA might just be what crypto need to bridge the adoption gap. The synergy and how exchanges approach the ecosystem to make it attractive to tradfi traders is also key to achieving success here.
I don't understand what you mean by the exchanges venturing into TradeFi as what crypto needs in bridging the adoption gap. Does this have any effect in the crypto industry itself? I doubt that! You might want to explain further. Besides, traditional brokers are already into cryptocurrency, it's just that exchanges just started recently.
Well, I believe exchanges can make TradeFi more popular. But the true success that can maintain sustainability is only in traders' profitability.
Tokenized stocks need to be issued on blockchain meaning trading them will become 24/7 if it becomes really tokenized. In that terms, tokenized stocks become crypto-like and defi transactions like lending and borrowing can be done using tokenized stocks as collateral. This enhances adoption across the tradfi ecosystem.
What I see on Bybit's TradeFi platform is entirely different from what you explained/expected, there are tokenised Gold and others on the platform before TradeFi, but this is different. It's a dedicated platform to trade asset classes the traditional brokerage way. This is not about tokenizing them, but bringing the tradition into the exchange platform, like a bridge. That is why you must first open a special MT5 account for it within the Bybit's platform, but I believe one can still trade it directly from the Bybit's platform after the mandatory account opening.
Oh I see! Not checked bybit up on stock yet tho but what I've seen so far on bitget is entirely different where these assets can be traded directly on the exchange with any intermediate broker like the MT5 or MT4 and trading doesn't occur during weekends too.