Tesla tokenized stock and its FTX trading platform: What to know?

4 min read | April 04, 2022 10:08 PM AEST | By Ankit Sethi

Tesla tokenized stock and its FTX trading platform: What to know? — Image source: Pixabay.com

What are FTX’s tokenized stocks?

These are said to be spot tokens of popular stocks listed on traditional exchanges.

FTX claims that the tokens are backed by actual equity shares of the related company. Apart from stocks, currencies and ETFs can also be tokenized, FTX claims.

Tesla tokenized stock

The electric car maker's tokenized stock trades on FTX. It tracks the price of Tesla equity stock, but it is not guaranteed that the prices of Tesla equity stock and FTX’s tokenized stock would exactly be the same at all times.

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According to CoinMarketCap data, Tesla tokenized stock’s trading volume and price had gained over the past 24 hours as of writing.

Data suggests the TSLA stock started this year with a price tag of nearly US$1,070, but a sharp bearish trend took the price to nearly as low as US$700 by March 24.

Since then, an intermittent bullish phase has helped the price to recover.

FTX platform and FTX token

A crypto derivatives platform, FTX appears to be a distinctive project in the vast crypto verse. It does not, however, provide services in prohibited jurisdictions, which include the US.

The entity named FTX Switzerland is said to be providing brokerage services.

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FTX provides tokenized stocks and even leveraged tokens of BTC and other crypto assets. Besides, the project has its own token, FTX, which ranks among the top 50 crypto assets on the CoinMarketCap list.

As of writing, FTX token was trading in green. After starting this year with a price tag of nearly US$39, FTX token had a volatile journey, but it could breach the US$50 figure by late March.

Data provided by CoinMarketCap.com

Bottom line

Tesla's tokenized token trades on the FTX exchange, and as per the project, it is not available to users in the US and some other jurisdictions.

FTX claims that tokens are backed by equity shares of the company with Canco GmbH as the brokerage service provider.

FTX platform has its own native token, which so far has given better returns in 2022 as compared to most other large cap tokens. But since crypto assets are volatile when it comes to price, FTX token price prediction can be very risky.

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