Apple-Fi Update — Things Are Starting to Move Fast
For many years, investing was purely for stockbrokers.
Reality was not far from scenes out of the movie Trading Places… with hundreds of brokers packed together like sardines, constantly yelling.
And those men and women made a killing speculating on things like the price of orange juice.
But for too long, the American public was almost entirely locked out of the action.
Fees back in the ’80s were around $45, but could climb into the hundreds or even thousands depending on the size of the order.
Fortunately for us, the internet put brokers in their place. And it opened up the wide world of trading to the public.
Sitting at home with just your computer, you have the ability to invest in nearly any stock out there… in any way you want to do it.
Stocks, bonds, options… you name it.
But still even to this day, there are limitations to what people can do.
If you want to invest in private companies (or even illiquid assets like real estate), you’re going to face major challenges. While the regular stock market has evolved, there are plenty of other industries that have not.
But soon there may be sweeping changes to how we invest…
A Huge Step Forward for Investing
Blockchain technology is nothing new. And as of June of this year, another tech firm — tZERO — started to use blockchain technology to develop a way for a person to buy digital securities, cryptocurrency and even traditional stocks.
The difference is that tZERO’s Alternative Trading System (ATS) platform is the first SEC-regulated ATS to support secondary trading of crypto securities.
And it’s owned by online retailer Overstock.com (NASDAQ: OSTK).
OSTK is up over 900% this year alone… COVID-19 forced many to take to the internet to receive purchases, which has boded well for a company like Overstock.
TZERO has experienced similar growth but is still just a small percentage of OSTK, giving it plenty of room to grow.
It’s a huge step forward for blockchain technology and trading as a whole.
But what does it mean for you?
Well first, having the SEC regulate the trading system allows tZERO to potentially provide services not available at other platforms.
But the biggest potential I see here is the ability for tZERO to fully advise companies on how to raise money on their platform through the use of tokens.
A token represents an alternative method for companies to raise capital. Investors can buy and sell tokens just like they would stock.
And because tZERO’s platform is SEC regulated, they have to abide by all the rules any other trading platform does.
That means no pump-and-dump schemes like we’ve seen in some of the altcoins… no Chinese investors blowing up the price off hours… and no insider trading by CEOs who know the news before it breaks.
Plus, there’s a lot of potential here beyond just an alternative method of buying stocks.
TZERO’s platform has the ability to tokenize nearly anything that might be traded. That means not only public and private stocks but also items that may have a hard time finding buyers.
Real estate… fine art…
Heck, even your stamp collection (if it’s worth enough) has the chance to get tokenized.
This blockchain player has developed a platform that allows people to invest in products they would have been otherwise locked out of.
Previously, if a company wanted to create tokens to raise funds, it would have needed to develop its own platform and have required a large amount of expertise and investment.
TZERO provides that service to these companies with the prowess of SEC regulation to boot.
Right now, on its platform, you can invest in three different tokens: Overstock’s stock token (OSTKO), tZERO’s private stock token (TZDROP) and a third known as Aspen Digital (ASPD).
Aspen Digital is a company formed solely to own a portion of the St. Regis Aspen Resort in Colorado. It’s the first of many to come.
There’s a lot of potential through tZERO.
The setup process is no different than for a regular broker account and has all the security necessary to keep your information private.
I’d like to hear your thoughts on the matter. Do you think tZERO will survive? Or will they fail like plenty of others in the past…
Send me your thoughts at AskRay@SevenFigurePublishing.com.
To a bright future,