FTX has launched tokenized versions of several actions suspended by the Robinhood app. The exchange also created a WallStreetBets (WSB) index consisting of 5 stocks and 2 cryptocurrencies.
FTX and Bittrex tokenize stocks
Over the past few days, the Reddit group, known as WallStreetBets , has inflamed financial markets by inflating the prices of several stocks.
In response, Robinhood suspended trading in stocks targeted on its app, causing anger among retail traders . This initiative fuels the theory that the financial system is rigged in favor of professional investors.
In response to these restrictions, the Bittrex and FTX exchanges have launched tokenized versions of these stocks so that small investors can benefit from the same opportunities as „multi-billion dollar financial institutions“.
Tom Albright, CEO of Bittrex, said:
“We believe that blockchain, decentralization and cryptocurrencies will finally put small investors on an equal footing with financial institutions. “
FTX creates a WallStreetBets index
The FTX exchange has also launched an index dedicated to WallStreetBets . The index trades as a futures contract with an expiration scheduled for March 26, 2021.
We can read in the press release :
„We are pleased to announce that we have launched the trading of a basket of stocks and cryptocurrencies targeted by WallStreetBets.“
The WallStreetBets Index, or WSB, officially trades under the ticker WSB-0326, and tracks the price of 5 stocks and 2 cryptocurrencies . Thus the index is made up of shares from Nokia (NOK), BlackBerry (BB), AMC Entertainment (AMC), GameStop (GME), iShares Silver Trust (SLV) and Dogecoin tokens (DOGE) and the FTX Token (FTT) .
Sam Bankman-Fried, CEO of FTX, also explained that the WSB index futures contract is cash-settled against the index of tokenized stocks on FTX.
Each asset has a weight of 16.5% in the basket, except for the native FTX token, which has a weight of only 1% .