Interview with FTX founder SBF: Hope to provide users with any product they want to trade

The U.S. stock market in 2020 is so exaggerated that even movie scripts dare not shoot it like this.

In just 10 days within 3 months, when Warren Buffett said, "I have only experienced one blowout in my life" After that, the U.S. stock market was like the ebbing sea water, which melted four times without resistance. And just when the market was miserable, the U.S. stock market actually walked out of the V-shaped curve, and there was no sign of a rising tide, and various technology leaders were moving towards their own historical highs.

Apple's market capitalization exceeds 2 trillion US dollars, Tesla stock has risen from 600 US dollars to 2,500 US dollars, artificial meat leader Beyond Meat has risen from US$90 to a maximum of US$160, including Weilai, the Internet giant Meituan, etc., which have recently increased by 6 times. A series of technology assets are the leaders of this historically rare secondary market bull market.

And this kind of background has also made the US stock market successfully attract the attention of a large amount of funds, subject matter, liquidity, trading volume, Volatility, any element perfectly meets the needs of traders, and the US stock market has become a trading holy place for traders.

On October 29th, the global cryptocurrency derivatives trading platform FTX announced that it has cooperated with Digital Assets AG (DAAG) and CM Equity Join hands to launch equity token trading for the first time, introducing US stocks to the cryptocurrency trading platform, allowing cryptocurrency users to participate in the US stock market with the world's largest liquidity and trading volume.

Rhythm BlockBeats recently interviewed FTX co-founder Sam Bankman-Fried (hereinafter referred to as SBF) and chatted with him What difference will FTX's latest equity token product bring to the currency circle?

Rhythm BlockBeats: The U.S. stock market is extremely hot this year, especially Nasdaq. Many targets are at record highs. Apart from the traffic perspective, what other factors prompt FTX to introduce U.S. stock trading?

SBF:US stocks The introduction of trading will make FTX one of the few platforms that covers all types of secondary markets in the world. The trading categories include cryptocurrencies, fiat currencies, and stocks, and the trading tools include spot, futures, and OTC. This also gives cryptocurrency users the opportunity to trade stocks, and vice versa, stock investors get access to cryptocurrencies.

Rhythm BlockBeats: What are the tendencies in the choice of US stocks sex? At present, there are TSLA, AAPL and other assets belonging to the technology field. Can it be understood that FTX’s US stock trading will be more inclined to technology assets?

SBF:Global Digitization is becoming more and more obvious, and the performance of the technology sector is quite good, which is why the top 6 stocks in the S&P 500 (Standard & Poor's 500 Index) are all technology assets. We will provide the products that users need most. Looking at the world, technology companies are the most valuable and most acceptable assets at the same time.

Rhythm BlockBeats: Can you share the underlying architecture of this product ? How does FTX do it in order to allow users to own 0.1 TSLA stock tokens?

SBF:We Working with CM-Equity, they take care of the custody of the shares. FTX provides tokens backed by these stocks, and users can trade fractional shares of U.S. stocks through token transactions. At the same time, users can also exchange tokens for corresponding stock assets through CM-Equity.

Rhythm BlockBeats: A question that everyone is most concerned about at present, It is compliance. Can you briefly introduce how to complete compliance through partners? Will FTX US stock equity token trading restrict users in China?

SBF:CM -Equity is a compliant financial institution in Germany with a license for C-end stock trading. FTX launched this US stock trading product together with them. CM-Equity can carry out stock custody, and at the same time needs to complete KYC, compliance, and transaction supervision. FTX does not provide trading services in restricted regions, including the United States. At the same time, FTX also requires KYC Level 2 users to trade. At the same time, users are encouraged to evaluate this product according to their own personal situation and region.

Rhythm BlockBeats: Another concern is procedures At present, Tiger Securities, a popular US stock trading platform in China, actually uses the service of IB, so it means that users will have two parts of the service fee, which are paid to Tiger and IB respectively. How will FTX’s US stock token transaction fees be charged?

SBF: FTX Only standard rates are charged on stock trades. Unlike most brokerages on the market, FTX is not a single-dealer platform, any user can inject liquidity on FTX, in other words, the liquidity of all users and market makers can be aggregated on the FTX platform . Some people will use IB for hedging, some people will use other platforms, and some people may trade directly on the NYSE.

Rhythm BlockBeats: In the global secondary market, In addition to US stock trading, does FTX have other plans? For example, mainstream commodities such as silver and rubber?

SBF:Yes Yes, we are working on this part of the layout.

Rhythm BlockBeats: FTX US stock token trading will be There is a 7x24-hour market, but U.S. stocks have closing hours. Will the price fluctuations of U.S. stock tokens during the U.S. stock closing time affect the pre-market prices of U.S. stocks?

SBF:FTX The price of stock tokens on the platform is regulated by the market. I think the ideal situation is that when the US stock market is closed, FTX’s US stock token trading does not have much liquidity, and the volatility should be very violent at the opening. But everything still depends on the relationship between supply and demand, and what signals traders pay more attention to.

Rhythm BlockBeats: Will traditional assets be tokenized Trending to be a cryptocurrency trading platform? Recently, SBF has also made many moves, such as investing in Math Wallet. What is SBF's vision for FTX?

SBF:Yes I'm not surprised by this, although it's a lot of operational and compliance work to get started. My ultimate vision for FTX is to become the world's leading trading platform that can provide any product that users want to trade. We do everything possible to integrate all kinds of commodities into trading products, so that FTX can cover all secondary markets as much as possible.

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