Report Suggests FTX's Tokenized Stocks Might Not Have Been Backed 1:1, Synthetics May Have Been Used to 'Manipulate' Real Stock Prices – Bitcoin News

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FTX offered 36 tokenized stocks but speculators believe it’s questionable whether or not the firm actually held the real stocks.

show that while FTX’s terms of service said the firm’s synthetic stocks were backed 1:1, that may not have been the case.

“FTX listed wrapped AMC token[s] for trading on its synthetic derivatives trading platform,” Chainsaw’s Twitter account details. “[Etherscan.io] currently shows that there are 545,000 synthetic AMC tokens on the Ethereum blockchain. FTX claimed that the underlying stocks were custodied with asset manager [CM Equity AG],” Chainsaw’s tweet adds. The publication’s Twitter account continued:

However, a recent rectification from CM Equity shows that the firm terminated its relationship with FTX in December 2021, which means that FTX lied about the custody of AMC tokens for the better part of 2022. Report Points Out That FTX Terms of Service Said: ‘Buyers of the Fractional Stocks Have Neither a Claim to Delivery of the Underlying’that details that Gamestop and Tesla shares could have been manipulated as well. Furthermore, the researchers note that the leaked FTX balance sheet disclosed by the Financial Times shows the company only holds Robinhood shares. There’s no documentation that’s been made public that shows FTX actually owned any of the 36 tokenized stocks it listed.

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Rehypothecation, fractional reserve, and synthetic coins.

Isn’t that like synthetix_io

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