+ 0.00
+ 0%
+ 0.00
+ 0%
+ 0.00
+ 0%
+ 0.00
+ 0%
+ 0.00
+ 0%

Apple, Other FAANG Stocks Can Now Be Traded In DeFi Alongside Tesla: What You Should Know

April 23, 2021 4:52 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Apple, Other FAANG Stocks Can Now Be Traded In DeFi Alongside Tesla: What You Should Know

Kwenta, a decentralized finance protocol, announced Friday that it would make available synthetic tokens for so-called FAANG stocks for trade on its platform.

What Happened: Kwenta is an Ethereum decentralized application or dApp — which is in turn underpinned by Synthetix — a software that allows users to mint new crypto assets that mimic other assets in both the crypto or real realms.

The project announced the availability of synths that track the price of FAANG acronym stocks made up of Facebook Inc (NASDAQ:FB), Apple Inc (NASDAQ:AAPL), Amazon.com, Inc (NASDAQ:AMZNNetflix Inc (NASDAQ:NFLX), and Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG).

Last month, the project had launched an experimental synth that tracked Tesla Inc (NASDAQ:TSLA). 

Kwenta said that offering liquidity on these assets through an automated market maker such as Balancer can allow some price discovery and access outside of market hours.

During regular market hours, the equity Synths are tradable against Synthetix smart contracts with infinite liquidity and zero slippage — a reference to the difference between the expected price of a trade and the price at which the trade is executed.

Why It Matters: Kwenta said more equity Synths would be coming to the platform soon with Microsoft Corporation (NASDAQ:MSFT) and Coinbase Global Inc (NASDAQ:COIN) stock to be added “within the coming weeks.”

The average transaction fee on the Ethereum network is touching 0.0089 ETH or $19.28, according to BitInfoCharts, which makes buying real stocks considerably cheaper.

As per Etherscan, for more complex transactions such as Uniswap (UNI) swaps, the average transaction fee is $45.08. Ethereum (ETH) traded 11.7% lower at $2,192.27 at press time.

Earlier in April, Binance announced it would allow tokenized stocks of Tesla to be carried out on its platform. 

See Also: Is Buying Tesla Stock In Tokens Rather Than Actual Shares The Better Choice?

The tokenized stock announcement could land the cryptocurrency exchange in trouble with Hong Kong regulators.

The marketing campaign around the tokenized stocks could be classified as a regulated activity in the territory that requires a license, which the exchange reportedly does not hold in Hong Kong.

Read Next: Is 2021 The Year Of Tokenized Assets?

Photo by Morning Brew on Unsplash

Related Articles

Streaming Wars, Social Media, And 5G: Comms Sector Earnings Preview

Wedbush: Antitrust Interest In Tech Companies Mostly Noise, Breakups Unlikely

MarketAcross: Tech Stocks To Watch Closely

Coinbase To Let The Doge In: What Investors Need To Know

Coinbase Global, Inc. (NASDAQ: COIN) is finally warming up to Dogecoin (CRYPTO: DOGE), which has had a stellar run thus far this year. At one point last week, the meme currency hit a peak of 73.76 cents, a gain of about 15,600% for the year. read more