Tribute to FTX? How are Binance Equity Tokens Different?

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What are equity tokens?

What are equity tokens?

That is, all tokens will be backed by stocks held by CM-Equity AG, a German regulated institution whose stocks are held in custody by a third-party brokerage company, and users are eligible for economic benefits from holding physical stocks , including Potential Dividends.

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According to Binanceannouncementannouncement

, at 9:35 p.m. on the 12th, the Tesla equity token trading pair "TSLA / BUSD" has been officially launched, and will be priced, settled and mortgaged in BUSD. As of now, a trading volume of $9.8 million has been reached in a 7-hour trading cycle. As shown in the picture below, equity tokens can be traded at the bottom of the "Trade Column" on Binance's official website.

As shown in the trading interface as shown in the figure below, it should be noted that equity tokens do not have an order book function, and can only enter the quantity, and click to buy and sell. In addition to the closed period and non-24/7 trading, it is also inconvenient to choose BUSD, which has a relatively low degree of adoption.

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How is the Binance version different from FTX?

Lianxin previously reported that FTX launched the equity token market as early as October last year. Coincidentally, the service providers that cooperate with Binance and FTX are both CM-Equity AG, which means that the two parties are different from each other.

Given that FTX invested in this product earlier, it is normal that the product maturity is better than that of Binance. The founder of FTX also tweeted earlier that this is just a beta product of Binance.

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In the face of similar products, SBF has three inner voices

SBF, the founder of FTX, tweeted shortly after Binance released the equity tokens. He first jokingly said: "Binance also has equity tokens, and FTX's equity tokens are over." Then, he objectively commented on the flaws of Binance products:

In the end, SBF still provided an "objective and decent official statement": "This is only a beta version of Binance, and only through peer competition and challenges can the encryption industry make more progress."

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Leveraged Token Controversy

When it comes to FTX and Binance, we have to mention leveraged tokens. Binance made a strategic investment in FTX in 2019 and listed its platform token FTT at zero cost. Since then, it has introduced leveraged tokens first issued by FTX.

However, in March last year, Binance CEO Changpeng Zhao (CZ) removed all leveraged tokens issued by FTX on the grounds of protecting users. He claimed at the time that "most users do not understand this product." And after foreign media research director Larry Cermak broke the news, he confirmed that Binance version of leveraged tokens will be issued.

Although there is still peaceful coexistence on the stage, the leveraged token incident seems to be the fuse for the two parties to part ways. Since then, including the explosion of Binance Smart Chain (BSC), SBF has also expressed not too positive views.

Overall, the performance of FTX since its launch is obvious to all. The product update speed is extremely fast, and it is also the favorite of many traders. However, according to Lianxin’s previous report, the FTX website ranks 16th in the traffic ranking in the encryption field, far away from the first place. Binance still has a gap.