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Crypto-currencies have no underlying. A crypto-currency is like a bunch of imaginary confetti. Why is every crypto organisation is issuing its own brand of co
by lottin 4y ago
Crypto-currencies have no underlying. A crypto-currency is like a bunch of imaginary confetti. Why is every crypto organisation is issuing its own brand of confetti? It's a legitimate question. It's exactly the same confetti.
- tartoran 4y agoIt’s not even real confetti, it’s digital copies.
- rnk 4y agoOf course they do it because they can manufacture something that people will pay for out of nothing, and then can use that for other things that get them real value.
- mortehu 4y agoOne third of FTX fees were used to buy and burn FTT tokens. This is nearly the same as stock buybacks, and makes it a security, i.e. an instrument that derives its value from the success of a business.
- lottin 4y agoBuying your own imaginary confetti doesn't magically turn your confetti into a stock or into a financial derivative. A stock confers ownership of the firm that issued the stock. These tokens don't confer ownership of anything, and therefore are not like stocks.
- mortehu 4y agoStocks and derivatives are not the only types of securities. I don't really see what you're getting at here. For most people, the only important part of what you call "ownership" are the cash benefits (buybacks, dividends, and acquisitions). You can see this from the small price difference between GOOG and GOOGL.
- lottin 4y agoSorry, I don't understand what you're trying to say.
- deleted 4y ago[deleted]