eli5 tokenized stocks. other than pure speculation with no connection whatsoever to the performance of the company, what gives these value?

Solving public goods value capture. | /impact | book.abundance.id

Hi, I’m Jack.🤷‍♂️ chronically unserious, cautiously cynical. @crybabygoblin is my gf.                          

Customer/User Experience Specialist/Consultant

c-crypto-member

Republic launching Space X Mirror Token on Solana

--------------------

Republic, a leading alternative investment platform, Is launching mirror tokens of private US companies starting with Space X. A $50 minimum is required and it is targeted at US investors. 

The “Mirror Tokens” will be on the Solana blockchain and be tradable post launch. The documents imply you will share in any upside/appreciation of the private stock if it IPOs. There is a 1 year lock up on the tokens.

I’m intrigued as this seems like an easy way for non accredited investors to get exposure to private US companies. 

The waitlist is open and has over 3,000 pledges so far. 

Interesting note From their FAQ:

If I invest, am I now an owner of SpaceX?

No. If you invest, you’re buying a debt instrument (a “Note”) offered by RepublicX - you have no right whatsoever to equity in SpaceX by v

-----News-Link------

https://republic.com/r-spacex

-------CA--------

0xF4fCDFDFeD9a1664B2e40Dc5BDA017e41723997a

but is it fully backed by their stake or they're not offering 100% of the tokens to trade? (ie. fully supply != circulating token supply)

it all seems very sketchy to me. if I understand the logic (and I'm not sure I do) you're essentially trading against Robinhood (and/or Republic), and since they're offering the tokens they seem to think that they'll beat investors in this game

seems like this all may blow up in people's face. you have both Robinhood & Republic offering tokenized stocks of the same companies (so already 200% of the value).

presumably they need to take the reverse bet on these companies to meet their obligations to investors

Pi-chi.eth Artist /animeoutcasts
Hosting: /sakura /kyoto /anime-manga /farcasterunion

https://portrait.so/pichi

For Republic you are buying into a Note which I assume is them tokenizing their own equity they purchased through the company. It’s definitely unique and pushing the envelopes of crowdfunding to a new level!

seems like this all may blow up in people's face. you have both Robinhood & Republic offering tokenized stocks of the same companies (so already 200% of the value).

presumably they need to take the reverse bet on these companies to meet their obligations to investors
https://farcaster.xyz/abundance/0x9329501d

Supposedly upside at IPO….

https://farcaster.xyz/pichi/0x0865e849

Studying MPC, progcrypto buzzword enjoyor, intern @ InternDAO

yes, just like Circle issued erc-20 tokens backed by *their own share* of treasuries and other reserve assets

there are many other examples of doing the exact same thing, e.g. Paxos (gold), Ondo (bonds). They tokenize their own share of something, instead of tokenizing the actual tradfi mechanism.

so they're saying that they tokenized OpenAI/SpaceX etc but they actually tokenizing *their own share* of those companies?

> "no connection whatsoever to the performance of the company"

no connection? tokens are linked to an SPV that has ownership in OpenAI. if OpenAI becomes more valuable, the SPV and its tokens also become more valuable

they just haven't released any details about the book value so far

The peg to the underlaying asset gives the value

Actually it’s backed by Robinhood’s stake in OpenAI by what I don’t get is that means it limits the supply side to the amount of the investment. Once all tokens are bought, it becomes supply and demand on robinhood’s stake which might disconnect from the actual openAI valuation. Or am I not understanding this clearly? https://x.com/amitisinvesting/status/1940521584307089519?s=46&t=K4GIh0DK9OyTnjBcntN7qA

Apparently the robinhood ones have connection to the real company but it’s limited to the portion owned by robinhood, so not sure how the value mechanism will work once they sell all equivalent tokens

Apparently the robinhood ones have connection to the real company but it’s limited to the portion owned by robinhood, so not sure how the value mechanism will work once they sell all equivalent tokens https://farcaster.xyz/xr0am-/0x8a3a4360