Is what you are trying to build what FTX has for trading public company stocks?

Would love to hear more about WeInvest!

Is what you are trying to build what FTX has for trading public company stocks?

-bbjacob

Hello bbjacob!

WeInvest is a decentralized real stock trading platform.

FTX is a centralized synthetic stock trading platform.

Important point to note, is that in trading real stocks on any platform, everything is regulated. I believe FTX has some regulations as well. With real stocks you can access anything in the public markets. With synthetic stocks you can access anything where you have a counter-party on FTX. There will likely be less stocks to trade. In the WeInvest platform there are probably close to 10,000 stocks. Requiring an FTX counter-party means you won’t be able to get a hold of less popular assets. You also won’t get paid any dividends or be able to have a say in any board meetings.

I like to think of it as, anytime I want to buy/sell I need an exchange that lists open orders. The NASDAQ and NYSE have broad reach. Everyone trading stocks is going through these exchanges, including FTX. When I buy a synthetic stock on FTX, I expose myself to counter-party risk, and FTX exchange risk. The trade doesn’t get executed through the NASDAQ or NYSE. I am buying price exposure from a counter-party.

In some ways it’s like buying crypto on a stock trading platform. If you buy ETH on Robinhood or WeBull, you only get price exposure. You won’t be able to put that ETH to work for you. You won’t be able to lend it out and generate yield, or trade it for anything else on a DEX.

we should be doing what they’re doing. these guys have inside info

https://www.bloomberg.com/news/articles/2021-10-01/clarida-traded-into-stocks-on-eve-of-powell-pandemic-statement