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Opinion: How does Binance Equity Token differ from FTX?

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FTX founder also tweeted earlier that this is just a beta version of Binance product.

FTX founder: They should still be in beta

Original source: Chain News

April 12 was a special day for Binance, whose platform BNB hit an all-time high of $638 that day, a close third to Ethereum in market capitalization, and a series of late-night product "equity tokens" announcements.

What is an equity token?

Equity tokens are tokens that track the price performance of traditional financial stocks, backed by physical stocks. Binance, like FTX, the exchange that pioneered the product, works through a partnership with CM-Equity AG, an asset manager.

This means that all tokens will be backed by shares held by CM-Equity AG, a German regulated agency whose shares are held in custody by a third-party broker, and users will be eligible for the economic benefits of holding physical shares, including "potential dividends."

How do Binance Equity Tokens Trade?

According to Binance announcement, at 9:35 on the evening of the 12th, Tesla equity token trading has been officially put on the platform of "TSLA/BUSD", which will be priced, settled and mortgaged by BUSD. So far, $9.8 million has been traded during the seven-hour trading cycle. As shown below, equity tokens can be traded at the bottom of the "Trading Field" on Binance's official website.

Users must pass through Level 2 KYC (Level 3 for German users), and users in China, the United States, Turkey and other countries are prohibited from trading.

In the trading interface shown in the figure below, it should be noted that the equity token does not have the order book function. It can only enter the quantity and click buy and sell. In addition to the closed period, non-24/7 trading, the choice of BUSD is relatively low level of inconvenience.

How is Binance version different from FTX?

As previously reported by Link News, FTX launched the Equity token market as early as last October. Coincidentally, CM-Equity AG is the service provider in cooperation with Binance and FTX. The two sides have a strong sense of departure from each other.

Relative to Binance only launched the "Tesla spot market" first gear; FTX has a larger number of equity targets and provides spot and contract markets. USD is used for trading, and the order book and trading interface of FTX are no different from that of cryptocurrency trading, which will be more friendly to users.

Given FTX's early involvement in the product, it is normal that the product maturity is better than Binance. FTX founder also tweeted earlier that this is just a beta version of Binance product.

In the face of similar products, SBF has three inner voices

FTX The founder, SBF, took to Twitter shortly after Binance's launch. "Binance has an equity token," he joked at first. "FTX's equity token is dead." He went on to comment objectively on the shortcomings of Binance's products:

Binance has only one Equity token product, which is only open for trading for 33 hours a week. There is no futures and users cannot redeem the underlying stock through CM-Equity.

In the end, the SBF provided a "decent and objective official statement" : "This is only a test version of Binance, and only through peer competition and challenges can the crypto industry progress."

Leveraged token controversy

When it comes to FTX and Binance, it has to introduce leveraged tokens. Binance made a strategic investment in FTX in 2019 and put its platform currency FTT on the market at zero cost. Later, it introduced the first leveraged token issued by FTX.

However, in March last year Binance Chief Executive Zhao Changpeng (CZ) withdrew all leveraged tokens issued by FTX on the grounds of protecting users, claiming at the time that "most users don't understand the product". And outside media research director Larry Cermak confirmed after breaking the news, will issue a Binancean version of the leveraged token.

Despite the peaceful coexistence on the stage, the Leverage Token incident seems to have been the trigger for the two parties to go their separate ways, and since then the SBF has expressed a less than positive view, including the BSC's popularity.

Overall, FTX's performance since its launch has been obvious. The product update rate is very fast and it is the favorite of many traders. The FTX website is ranked 16th in the crypto traffic ranking, which is still a long way behind Binance.

Ann and currency this year has been very bright eye transcripts, BSC red, BNB continue to refresh the historical high price, but still noticed that compared to its main competitors, their lack of products - equity tokens, and before the Coinbase direct public release, believe in "equity tokens" will be after the last lever tokens, both sides compete next battleground.