What you need to know
- A new report has revealed that millions of dollars worth of fake Apple stocks are being traded over blockchain.
- Bloomberg says around $34 million in "synthetic" Apple stocks that track the real-world price of AAPL exist.
- Users can trade tokens on decentralized markets.
A new report from Bloomberg has revealed that around $34 million in "fake" Apple stocks are being traded over blockchain.
The new report states:
The report says that these new tokens occupy the same grey area of DeFi (decentralized finance) as NFTs and the like. The report explains:
According to the report these tokens are traded on decentralized and automated markets, rather than crypto exchanges like Coinbase. The report says that the volumes aren't anything to wake up Wall Street at the moment, given that $34 million of mirrored Apple tokens are currently in circulation, 1/1000th of Apple's full market cap.
An expert in the report stated that because the synthetic stocks aren't regulated or traded on the national securities exchange the SEC "would take issue with them", and that regulators may look to stop the practice, but that doing so would require them "to shut down the underlying open-source software code that makes up the blockchain and is used by a global user base that includes many anonymous players."
You can read the full report here.
Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9
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