It's wild to think that stock exchanges can just shut down whenever they want. Like recently, the UAE stock exchange was closed for a few days to deal with a big drop. I get it, but that’s not really how a free market should work. I’m super happy that we can trade on-chain stocks 24/7 without any weekend closures thanks to platforms like hyperliquid and perpmate or other similar perpetual DEXs.
It seems to me that folks still stuck in TradFi are just scared of change, or maybe I’m missing something? Are there any real benefits to using a traditional stock exchange over an on-chain one?
Is good you mentioned that the stock market closer is to prevent the market from total crash which is a right of the stock market as stipulated in their terms of services to you as a user of the market, this role exists whereas it doesn't exist in the cryptocurrency market, you may be right to call it freedom but yes with it price.
Not like that, is not as if those trading stock market are afraid of change, but their have their reasons for reasoning like safety is key to investment and for that reason, they may decide to own something tangible like owning a share in Apple or Elon musk company (Tesla) this can give them some level of confidence in their investment instead risking that capital on cryptocurrency where they may not have any tangible physical representation of the investment.
The exchanges closing sometimes is mostly not about the notion of controlling the trajectory of the market, it could sometimes be the fact that it is done just to reduce the level of panic that has saturated the market and the move is made in order to give market time to stabilize! Especially during those high volatility situations. It may appear a bit restrictive, but the general idea is to actually protect investors and prevent massive crashes caused by fear of selling.
On chain stock is great but only for trading. The real investor who buy stocks for investing purpose for long term aren't buying on chain stock because they want real ownership over the stock. The liquidity will always be bigger in TradFi stock.
Besides, some investor justify the closing of the market to protect the investors from unnecessary panic, I could kinda see that.
Stock forced closed or known as circuit breakers or trading halts, act as a collingoff period to let investors digest new information and to manage extreme volatility. It happen on every country that I know, Just couple of week ago here in Indonesia trading halt occur after resignation director of IDX and other because transparency something. Also there is system automatically cut off trade when some stock hit +25% or -25%.
Lot of the country would say "to protect our customer or some sort off"
on chain stock in the other hand as far that I know you dont have the real stock is just like CFD or contract based if you trade on platfrom like hyperliquid, so no dividends and no voting rights. and the price would be corellated with the tradfi when the real market open./
Not all tradfi stock exchange is that strict tbh. Some like robinhood open certain market for 24/7. The tradfi still stuck with the breaks and working hours routine and it's true but thats just how it is.
So far there's no system that able to reliably execute tons of orders 24/7 I suppose. The onchain stock could make it happen because the transaction executed is actually pretty low.
I dont think that 24h Volume $1.436B on Crude OIL on perpmate and hyperliquid is small, I know it looks small compared to TradFi, I think in couple years this number is gonna be bigger than it is now and there is no reason to trade on trad stocks that can pause trading just because it suits them.