Fake stocks of major companies have penetrated blockchains, joining assets traded in such platforms such as non-fungible tokens and NBA game highlights.
- Mirror Protocol and Synthetix have developed synthetic shares of major firms such as Amazon.com Inc., Apple Inc., and Tesla Inc., mirroring the stock prices. The synthetic shares allow investors to trade assets without actually purchasing them.
- Decentralized finance allows traders to take advantage of price differences between actual and synthetic stocks. Users can post collateral to mint new tokens when prices are too high, and burn tokens when prices are too low.
- Synthetic equities are considered as a Trojan Horse into legacy markets, as investors could flock into the asset with the possibility of higher returns through blockchains.
Regulators are likely to look into the space, but discussions have not yet been made with firms heavily involved in the area.
AMZN is up 3.00%, AAPL is up 2.24%, while TSLA is down 2.44%.