Post
Topic
Board Economics
Re: Tokenization of real-world assets
by
squatter
on 04/01/2019, 21:28:02 UTC
It's really not decentralized, because you still have to trust a middleman, but hey. Though it's definitely not for everyone, having the option to invest in "tokenized" versions of stocks is a good thing in my opinion; I just hope that people know how it actually works before throwing their money into it. In this case, it's pretty much just the case of, if you don't like it, then don't buy it.

Will I be using it? I really don't know. I'd have to do some research on DX if they really actually are trustworthy enough or not.

I suppose with tokenized assets, there's always trust involved. Even if you could use a DEX to trade tokens that are built on decentralized platforms, you still have to trust that the issuer will redeem them for real assets.

We're seeing this situation with new stablecoins like PAX. Paxos is analyzing the blockchain and freezing funds when customers attempt to deposit and redeem for real dollars. This will unfortunately become commonplace in the future. The idea of tokenized assets seems great if it means you can avoid KYC by trading on P2P or DEX markets. Unfortunately, the centralized issuer model can throw a wrench into such plans.