Binance ceasing support for stock tokens

[FatFork]

According to the Binance announcement, crypto exchange is halting operations for its stock tokens offering, which let users buy and sell tokenized stocks of popular equities such as Facebook, Tesla, and Google, among others. Users who have such assets will have 90 days to sell them or move their holdings to a soon-to-be launched CM-Equity's portal (if they are residents of the EEA). All stock token positions on Binance will be closed after the deadline of October 15, 2021 13:30 (UTC).

Today, we are announcing that we will be winding down support for stock tokens on Binance.com to shift our commercial focus to other product offerings. Effective immediately, stock tokens are unavailable for purchase on Binance.com, and Binance.com will no longer support any stock tokens after 2021-10-14 19:55 (UTC).

https://www.binance.com/en/support/announcement/3a0304f3ee1c43668959c1b01f610d59

[1714880103]

1714880103

[1714880103]

1714880103

[mk4]

Pretty much expected due to the far higher demand for cryptocurrencies compared to stocks. Same thing happened to the Abra exchange in the past. Stocks in general just moves a lot less violently(unless we're talking specifically about meme stocks) compared to most cryptocurrencies, knowing that a huge majority of cryptocurrency traders are pretty much just gamblers.

[dkbit98]

I am not surprised witth this news, they made so much problems with this risky move when they introduced stock tokens and that is one of the reasons why many countries banned Binance recently.

[FatFork]

Pretty much expected due to the far higher demand for cryptocurrencies compared to stocks. Same thing happened to the Abra exchange in the past. Stocks in general just moves a lot less violently(unless we're talking specifically about meme stocks) compared to most cryptocurrencies, knowing that a huge majority of cryptocurrency traders are pretty much just gamblers.

Yeah. Binance said it would stop operations "so that the company could focus on other product offerings." But given the fact that the stock token offering was launched in April, and they plan to open a new platform in collaboration with CM-Equity, I am more inclined to think that they're being pushed to take this step due to regulatory pressure.

[mk4]

I am not surprised witth this news, they made so much problems with this risky move when they introduced stock tokens and that is one of the reasons why many countries banned Binance recently.

I am more inclined to think that they're being pushed to take this step due to regulatory pressure.

Definitely also possible. Wondering what kind of sort of voodoo magic FTX has for them to get away with their synthetic stocks for a while now though, with all these crypto exchanges halting stock offerings.

[dkbit98]

Definitely also possible. Wondering what kind of sort of voodoo magic FTX has for them to get away with their synthetic stocks for a while now though, with all these crypto exchanges halting stock offerings.

How about bribing of politicians and supporting their campaigns, like Sam did in previous US elections with his ''donations'' and I am sure he did something similar in other big countries where FTX is operating.

[mk4]

How about bribing of politicians and supporting their campaigns, like Sam did in previous US elections with his ''donations'' and I am sure he did something similar in other big countries where FTX is operating.

I'm not going to be surprised if it was actually bribes, but I totally doubt that Binance doesn't have the capability of making such bribes as well. Like, I don't have a single idea of which exchange has a better balance sheet but it's probably a safe assumption that Binance is at the very least slightly more capable.

[leea-1334]

In case people did not understand what this is,,, just imagine Robinhood or similar apps. If you never know, just download one of those free to play games and install and play, and when the ads come you will eventually see one app that lets you buy and sell (trade) stocks.

But these are not real stocks of course, just stock tokens:)

They will figure out another way do not worry!

[shield132]

Binance is really trying to do a lot. They acquired Coinmarketcap, they created BUSD, an analogue of USDT and they pushed BNB to enormously grow in price from scratch. Then they added stocks trading without fees, a lot of "Safe High-Yield" stakings. Oh, they also have Binance Card, Binance Pay, they even have their own casino (which is meh but maybe in near future they'll seriously work on it).

Binance risked and violated securities rules by launching stock trading in that form. Their CEO and overall the company is very hyperactive. It will be better for them to know their limit and know when to start and when to stop.

[mk4]

Binance is really trying to do a lot. They acquired Coinmarketcap, they created BUSD, an analogue of USDT and they pushed BNB to enormously grow in price from scratch. Then they added stocks trading without fees, a lot of "Safe High-Yield" stakings. Oh, they also have Binance Card, Binance Pay, they even have their own casino (which is meh but maybe in near future they'll seriously work on it).

Binance risked and violated securities rules by launching stock trading in that form. Their CEO and overall the company is very hyperactive. It will be better for them to know their limit and know when to start and when to stop.

Binance is a really huge company that has huge amounts of revenue, and that I assume continues to increase every quarter. And with almost any other tech company, high growth is almost always the play. (not to mention that even Binance itself has their own early-stage investors)

[Woodie]

An unfortunate  development, Am sure Binance adopting stock tokens to be listed on its platform had invited all sorts of regulations and they felt the pressure.

From the look of things the only way out seems to be to part ways with stock tokens and run the business without much interference and stick to cryptos only.

[ChuckBuck]

I am not surprised witth this news, they made so much problems with this risky move when they introduced stock tokens and that is one of the reasons why many countries banned Binance recently.

Personally, I consider this a step backwards in their development. Binance has been trying to get into a lot of different areas, their introduction of stock tokens was a risky move and they had to face many bans. Stopping at this point is not necessarily the right decision when they have encountered many bans of many countries. Stopping now means they accept that they can't do it, it doesn't look like how Binance used to with many other problems.

[stomachgrowls]

I am not surprised witth this news, they made so much problems with this risky move when they introduced stock tokens and that is one of the reasons why many countries banned Binance recently.

Personally, I consider this a step backwards in their development. Binance has been trying to get into a lot of different areas, their introduction of stock tokens was a risky move and they had to face many bans. Stopping at this point is not necessarily the right decision when they have encountered many bans of many countries. Stopping now means they accept that they can't do it, it doesn't look like how Binance used to with many other problems.

They are much pretty aware with the risks or the outcome of that particular plan that they had integrated and im bit agree that this is a step backwards but lets see on what would be the future progress.

I would really recommend the same thing too that they should've stick with crypto rather than trying to cope up all sorts of corners and now trying to mix out with those stock tokens?

Expanding the business is good but they should consider on what are the boundaries.

[ChuckBuck]

Expanding the business is good but they should consider on what are the boundaries.

On this point alone, I don't think so, as long as they have the right strategy, I think their boundaries are unlimited. Unlike other exchanges that were born at the same time, Binance always knew how to adapt to the market and gradually became the largest exchange in the world, this rich giant even spends millions of dollars to attract new customers. Most recently, Binance opened their affiliate and new user spin program with a total prize pool of millions of dollars. Obviously there's nothing they can't do to attract customers, so I believe this setback will soon disappear 

[hugeblack]

Binance is really trying to do a lot. They acquired Coinmarketcap, they created BUSD, an analogue of USDT and they pushed BNB to enormously grow in price from scratch. Then they added stocks trading without fees, a lot of "Safe High-Yield" stakings. Oh, they also have Binance Card, Binance Pay, they even have their own casino (which is meh but maybe in near future they'll seriously work on it).

Binance risked and violated securities rules by launching stock trading in that form. Their CEO and overall the company is very hyperactive. It will be better for them to know their limit and know when to start and when to stop.

ineeded, however, they don't want to comply with regulatory laws or try to stay away from them. Their plans for expansion and the exclusion of many competitors may make them manipulate many markets, especially the altcoins markets, on which they have great influence.
And I expect that the reason they stopped supporting stocks tokenization will lead many regulators to ask them questions and thus more oversight with few benefits.

[FatFork]

Binance is really trying to do a lot. They acquired Coinmarketcap, they created BUSD, an analogue of USDT and they pushed BNB to enormously grow in price from scratch. Then they added stocks trading without fees, a lot of "Safe High-Yield" stakings. Oh, they also have Binance Card, Binance Pay, they even have their own casino (which is meh but maybe in near future they'll seriously work on it).

Binance risked and violated securities rules by launching stock trading in that form. Their CEO and overall the company is very hyperactive. It will be better for them to know their limit and know when to start and when to stop.

ineeded, however, they don't want to comply with regulatory laws or try to stay away from them. Their plans for expansion and the exclusion of many competitors may make them manipulate many markets, especially the altcoins markets, on which they have great influence.
And I expect that the reason they stopped supporting stocks tokenization will lead many regulators to ask them questions and thus more oversight with few benefits.

Yeah, exactly. Recently, regulatory crackdowns on Binance has been increasing around the world. As CZ Binance said a few days prior to this announcement, Binance "still has a lot of room to grow" and "compliance is a journey" in the nascent digital assets market.

[Darker45]

Binance is really trying to do a lot.

They seem to want to excel in everything. Almost every craze and trend in crypto, Binance wants its own version. But I'm not sure if they have started an original one themselves.

From merely a typical crypto exchange, they made their own blockchain, issued their own token, created their own DEx, made an IDO platform, offered their own token launch platform, issued a card, added stocks, margin trading, P2P trading, lending, and so on. And when DeFi made significant success, they also started their own. I suspect they were the ones who created PancakeSwap out of UniSwap. And now that NFT has hit the crypto market, they are also very quick to create their own NFT platform.

I give them credit for that. I just hope they are not biting off more than they could chew.

[ChuckBuck]

And now that NFT has hit the crypto market, they are also very quick to create their own NFT platform.

Indeed, even they are pioneering this movement of NFT trading, they are creating an open market for NFT trading for everyone, for all games, I feel that they are trying strive to be the leader in every area in this crypto space, there are many games that are releasing NFT in their market, and they are achieving certain success, which shows that they are very successful. According to some sources, I see that they are even hiring digital artists to work and create more different NFTs in their market. Binance's doing everything!