Business

Elon Musk Demonstrates How Cryptocurrency Trading Can Destroy Stock Traders’ Weekends

Digital tokens linked to real shares plummeted over the weekend after Elon Musk’s Twitter followers suggested he sell 10% of his investment in Tesla.

The crypto-revolution has accomplished many things, like converting photos of dogs into digital gold, luring talent and real money away from Wall Street, and introducing a baffling assortment of language into mainstream finance. You can now add this: predicting what will happen in the stock market.

Tesla Inc.’s stock dropped on Monday morning, but crypto-watchers expected this. That’s because digital tokens tied to real shares plummeted over the weekend after Elon Musk’s Twitter followers suggested he sell 10% of his investment in Tesla.

On Fridays, the stock market in the United States closes for the weekend at 8 p.m. New York time, and does not reopen until 4 a.m. Monday. Crypto, on the other hand, operates 24 hours a day, seven days a week. On Sunday and early Monday, traders on the FTX market and other venues were able to bet on Musk’s tweets. They were mostly correct.

On Friday, the real stock closed at $1,222.09, and when trading resumed on Monday, it had fallen as low as $1,133. On FTX, Tesla tokens traded between $1,110 and $1,170 on Sunday.

Tesla and other well-known companies’ tokens aren’t actually issued by the companies themselves. According to FTX’s website, the tokens are backed by genuine Tesla shares held by a company called CM-Equity, and the tokens “may be redeemed with CM-Equity for the underlying shares if desired.” In the United States and other prohibited jurisdictions, they are not available for trading.

On Sundays, stock traders can unplug until 6 p.m. New York time, when the S&P 500 and other index futures resume trading at CME Group Inc.’s exchange after a weekend hiatus. However, if cryptocurrency becomes more mainstream, their days may be numbered.

If you liked the content, please share, follow and like us:

Leave a Reply

Your email address will not be published.