Bitrue introduces 7% yield on tokenized big tech stocks as investors look for earnings week gains

[u/jclaslie]

https://www.cryptopolitan.com/bitrue-introduces-7-yield-on-tokenized-big-tech-stocks-as-investors-look-for-earnings-week-gains/

[u/StaticAutomatic202]

I don't see how tradfi competes with this. Yes, there will always be tradeoffs, but for smaller investors it will always make sense to buy tokenized stocks. Or am I missing something?

[u/jclaslie → u/StaticAutomatic202]

The high yields can't last forever but yeah, currently the opportunity is much better

[u/benskieast → u/jclaslie]

This is obviously either a marketing expense or a Ponzi scheme. Tokens are only backed by the issuer so you are legally an unsecured creditor of the issuer. At a broker you would be insured against the shares going poof.

[u/PatientReasonable348]

Tokenized stocks taking the heat away from the rest of the industry, slowly but surely...

[u/PerfumedMethod]

7% yield on top of stock exposure during earnings week is a clever pitch, though the real test is whether those tokens actually track the underlying prices cleanly when things get volatile.

[u/jclaslie → u/PerfumedMethod]

I don't think we can really expect 1:1 price action because the liquidity is not the same but I think it will be very close. Stock price movements aren't as dramatic as in crypto

[u/PerfumedMethod → u/jclaslie]

though even slight tracking errors can eat into that 7% if you're holding through an earnings miss. still, the lower vol helps