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“Casino” Binance issued a new token linked to Tesla’s Binance coin, the market value rushed to the world’s third

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On the occasion of the listing of the first digital currency exchange Coinbase, another overseas digital currency exchange Binance announced the launch ofTeslaLinked equity tokens.
The Tesla Equity Token is priced, settled and secured in BUSD, the base currency issued by Binance. BUSD is a stable digital currency pegged to the U.S. dollar launched by Binance in 2019. It is directly purchased or redeemed at a 1:1 ratio with the U.S. dollar.

Binance official documents show that users can purchase a digital token that represents one percent of Tesla’s single-day stock price, instead of buying the entire stock. This equity is held by a custodial portfolio of underlying securities representing the issued tokens. Yes, based on Tesla’s share price of $760 per share, Binance investors can buy the equity token at a minimum price of $7.6. Token holders may also receive relevant dividends. To some extent, Binance users invest in Tesla shares in a “disguised form” by buying this equity token. However, the equity token cannot be exchanged for Tesla’s actual stock, it is just a tradable stock token. Binance stated that this move is aimed at solving the problem of after-hours trading of U.S. stocks by overseas users. U.S. brokerages provide after-hours trading, but for investors outside the U.S., stock tokens can allow them to access the country’s $47 trillion stock market anytime and anywhere without having to overcome regulatory barriers or jet lag. Binance CEO Changpeng Zhao said in a statement that stock tokens demonstrate how the company can achieve a more seamless value transfer and reduce the cost of accessibility without compromising compliance or security. . It should be noted that digital tokens have clear regulations in China. The Central Bank of China clearly stipulated in the “Law of the People’s Republic of China on the People’s Bank of China (Revised Draft for Solicitation of Comments)” in October last year, Any unit or individual is prohibited from making and selling digital tokens. Binance Coin has risen by 53% in the past seven days In addition to the equity token BUSD, the blockchain currency “Binance Coin” (BNB) issued by Binance has also continued to surge this week. Stimulated by the news of the Coinbase listing this week, Binance Coin has risen by 53% in the past seven days and has a market value of 580 billion yuan. It ranks third in the global digital currency market value after Bitcoin and Ethereum. Powell: Digital currency is a tool for speculation However, the recent continuous surge in digital currencies has also attracted regulatory attention. On Wednesday, Eastern Time, Powell said in an online interview with the Forum Washington Athletic Club, “ Cryptocurrency is actually a tool of speculation. They are not really actively used for payments. “ This is Powell’s reference to the speculative use of cryptocurrency again. During a hearing in the U.S. Congress last month, Powell said, The private cryptocurrency represented by Bitcoin is more suitable for speculation and cannot be used as a substitute for the US dollar. The completely private digital dollar system is not reliable. Powell’s evaluation of cryptocurrencies is consistent with his predecessor and former Fed Chairman Yellen who is currently the U.S. Treasury Secretary. In February of this year, Yellen stated that Bitcoin is a “highly speculative asset” and that digital currency may bring a faster and cheaper payment experience, “but there are many issues that need to be studied, including consumer protection and anti-money laundering.” . She also said that using Bitcoin for transactions is an “extremely inefficient way” and that processing these transactions consumes astonishing energy. Regarding the regulatory stance, Jesse Powell, CEO of Kraken, the world’s fourth largest digital currency exchange, warned that Governments may begin to restrict the use of Bitcoin and other cryptocurrencies, “maybe there will be some crackdowns.”

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