Many people like to invest in stocks, more so than crypto and to do so the usually rely on third parties like brokers to buy and sell their stock that also hold the assets of the users and only be given an IOU. Usually this is not a problem but during times like GameStop short squeeze brokers like Robinhood withheld users from selling using the pretext of having s broken button (BS).
A solution to counteract such abuse could be self custody of assets using tokenized stocks that could be held in a wallet and exchange like any other crypto.
Pros: - Self custody - No longer relying on a specific broker and trusting they wouldn't do against your biding - Allows to easily transfer and exchange to fiat - More decentralized
Cons: - You expose your assets to more crypto related risk (eg: you lose your stock to a phishing website) - You no longer have you assets protected by regulations that brokers need to follow
What do you think? Would tokenized stocks be a good way to implement crypto even more into our lives and add more credibility to us?
If there are more pros and cons that I have missed feel free to add your own.
[link] [comments]
You can get bonuses upto $100 FREE BONUS when you:
π° Install these recommended apps:
π² SocialGood - 100% Crypto Back on Everyday Shopping
π² xPortal - The DeFi For The Next Billion
π² CryptoTab Browser - Lightweight, fast, and ready to mine!
π° Register on these recommended exchanges:
π‘ Binanceπ‘ Bitfinexπ‘ Bitmartπ‘ Bittrexπ‘ Bitget
π‘ CoinExπ‘ Crypto.comπ‘ Gate.ioπ‘ Huobiπ‘ Kucoin.
Comments