tl;dr
HYPE goes from strength to strength. Binance gets involved in the tokenisation revolution.
Market Snap
Market Wrap
Well, that’s a painful day or two. MSTR sold a little BTC, as had been widely advertised, but as the CCC noted a couple of days ago, however small and irrelevant was the total amount, it’s the vibe that counts.
Curious Cryptos’ meme corner
Curious Cryptos’ Commentary – HYPE
HYPE – the native token to DeFi platform Hyperliquid – has long been a favoured pick of the CC Treasury team.
Just before reaching another ATH two days ago at $75.52 the latest sell trigger for the CC at $74 was activated. Approximately 50% of the total notional purchased has now been sold in exchange for fiat sterling funds that are double the total investment. That doesn’t happen by accident of course (the sell triggers were destined to put the Treasury team into that position) but no-one can reasonably argue with it.
So many investors lose money trading alts, for two basic reasons. The first is that they often jump on the latest shiny thing with no real commitment or understanding of the tokenomics, leaving them as weak hands, subject to the vicissitudes of the volatility inherent in cryptos.
The second reason is the one that really gets my goat. They either don’t set sell targets, or flake on them if they are reached. Those alt bags that once were very valuable and could have been sold or reduced are now largely deep underwater, and, in most cases, always will be.
Never buy an alt without having a clear exit plan. Never change that plan, though I will allow you to leave 10-20% as a moon bag if you insist.
Curious Cryptos’ Commentary – Binance
Binance has launched the facility to trade 7,000 US stocks and ETFs 24/5 with the option to buy fractional shares down to a minimum trade size of $5.
Binance is not the first mover in this space – Coinbase is building out its “Everything Exchange” functionality, whilst Kraken is expanding true tokenisation of stocks, and MEXC is offering access to US shares held in a traditional form, amongst others.
In some ways, Binance’s approach is a hybrid model – transactions are being handled by Nest Trading with custody and other services the responsibility of Alpaca. Binance is the front-end representing fractional shares in tokenised form, though that is merely a representation. This is of course a model copied directly from its crypto exchange. When you transact on Binance, your buys and sells are simply entries in a centralised database held by Binance, which may, or may not (see Bankman-Fried’s fraud), be backed by actual crypto assets.
Binance has long had an antagonistic attitude towards regulation and compliance though since man-child Changpeng Zhao went to jail, the company has cleaned up its act a little. It is telling, though, that this new service will not be offered in the US, for reasons that are patently obvious.
There is the ambition to move this facility into a truly tokenised trading platform with US shares represented by “bStocks” on Binance’s own blockchain, BNB Chain. BNB Chain has been wildly successful (it has been a core holding of the CC Treasury for many years now) and there is no reason to doubt that Binance will realise its ambition for true tokenisation.
And that is a good thing. I have been surprised at the slow adoption of tokenisation of real-world assets, though I must admit that I remain flummoxed that not everyone appears to be as wildly enthusiastic about cryptos as I am. Still, it’s always nice to be right in the end.
This Binance initiative – bringing tokenised stocks trading to the largest centralised cryptocurrency exchange in the world – will help accelerate the natural adoption of blockchain technology to all things financial.