Stocks Go 24-7 in Crypto Betting Markets With 100x Leverage

Watch Stocks Go 24-7 in Crypto Betting Markets With 100x Leverage - Bloomberg on Dailymotion

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00:00Muyao, just give us the overall overview of what the pros and cons of a perpetual swap are.

00:07Yeah, of course. So perpetual swaps are sort of futures contracts, but they never expire.

00:11They sort of sort of like I think the concept itself is not very new, but it became hugely successful in crypto.

00:18I think a couple of years ago with BitMEX, which is an exchange that came out a couple of years ago.

00:23It's very successful in crypto because it offers this leverage to special retail investors so we can put bet on cryptocurrencies prices

00:32without getting into very complicated products like options. In terms of cons, and we definitely saw that in the market crash in October

00:40with what happened with Binance and other exchanges, I think there's just too much leverage in the space.

00:46I think it escalated what happened in the market crash. And, you know, we saw some of the token prices even went down to zero

00:53for brief moment during the October market crash. The timing of this is just a little notable to me, at least, because we're in a

00:59risk-off sort of mood. I mean, what is the effect this has on trading or could have?

01:04I think what is very interesting here is that a narrative I keep on hearing from people after the October market crash is that

01:11why we're trading all these tokens that had no utility whatsoever, right? And then all of a sudden I'm hearing all these new products are coming

01:18out on blockchains like Hyperliquid and others that allows you to trade equity instead of crypto. So it seems like part of the retail

01:26investors in crypto was tired of what's going on in the crypto market. They were like, we want to trade equities, we want to trade

01:33Nvidia, we want to trade Tesla, all these firms, right? And so, you know, and then they came in at the perfect timing to offer this

01:39leveraged product for retail investors.