Apr. 20, 2023
April 20, 2023 Crypto should not be used as a collateral for stocks. Recently, stocks have been tokenized into NFT tokens. Theses tokens have no value and no purpose, but market makers are using them as collateral for their stock purchases. I don't think this would be fair as the NFT tokens can be created out of thin air. There is no regulation on them, and the exchanges are located off shore. This means there is no way to check the books of a market maker to make sure they are not generating new tokens out of thin air. As a household investor this is very concerning because market makers can short a stock and use the token as locates. This inherently makes me distrust the market.