tesla-token-on-binance:-explosive-volumes-already

Tesla token on Binance: explosive volumes already

Tesla token Binance

The launch of the Tesla token on Binance has been a success. On the first day, there have already been volumes of approximately 10 million dollars

Yesterday, the exchange of Changpeng Zhao launched the trading of a new product: stock tokens, i.e. tokens representing the shares of listed companies. The first to be listed was TSLA in a pair with BUSD, Binance’s stablecoin. 

The TSLA token reflects the value of TSLA, Tesla’s Nasdaq-listed stock of the same name. Since it follows the performance of the stock market, it also follows its timetable. But unlike buying the actual shares, the TSLA token does not give you any voting rights on the Tesla company, however, as stated in the Binance guide, you are entitled to the dividends and economic benefits of the underlying shares. 

In any case, in less than 24 hours, 14,000 share tokens were traded for a dollar value of $9.8 million

So thanks to this stunt, the stock market is entering the cryptocurrency market. As stated by the CEO of Binance in his tweet:

“Thanks to Elon Musk for bringing crypto to Tesla, so we’re bringing Tesla to crypto”.

Tesla the first stock token from Binance

Tesla, or rather the TSLA token probably represents an experiment that Binance wants to repeat and extend. In fact, in several posts, users have been asked what other stocks they would like to see listed. 

All indications are that other stock tokens may soon join TSLA. Indeed, as the exchange explained in its launch note, the purpose of these Binance Stock Tokens is to allow greater access to stocks on the financial markets. It is no coincidence that Binance allows the purchase of fractions of tokens and, for the time being, does not charge any fees.  

In addition, the tokens are cash-settled, which means that they are not redeemed in the underlying stock but in BUSD, Binance’s stablecoin. 

Binance explains in the guide:

“Stock tokens are ideal for Binance users who may want to diversify their investment portfolio beyond cryptocurrencies — into traditional financial markets. Users who cannot acquire a stockbroker account or find the process too cumbersome can trade stock tokens to gain exposure in traditional equity markets. Additionally, stock tokens provide flexibility and improve market access to users who cannot afford to purchase fully paid-up shares”.

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