FTX derivatives exchange has launched a composite index for trading in stocks and assets discussed on the famous Reddit group WallStreetBets (WSB).
FTX Adds WSB Index for WallStreetBets
FTX exchange has launched the Wall Street Bets index (WSB-0326) which allows users to assets that are popular on the Reddit group. The index tracks futures prices of the March 2021 index on German brokerage, CM-Equity.
The index assets currently include Nokia, BlackBerry, AMC Entertainment Holdings, GameStop, iShares Silver Trust, and Dogecoin. Assets are equally weighed, accounting for 99% of the index’s value. The rest 1% is assigned to FTX’s native cryptocurrency FTT.
The index starting trading at $320 last night and has gained 100% since then, last trading at $622.
FTX Tokenizing Spree
Lately, FTX has been on a stock market tokenizing spree. The exchange has issued tokenized versions of Tesla, Google, Alibaba, Pfizer and many others. FTX appears to be on a mission to tokenize all assets gaining popularity on the internet. The exchange has even attempted to tokenize future events by facilitating betting on the U.S. election and this year’s Superbowl results.
These five assets recently became popular on WallStreetBet group, following their strategy to “short-squeeze” low liquidity stocks. Many investors are choosing to spot-hold the most shorted stocks in the hope that others will follow as well.
WallStreetBets has quickly become the most active subreddit on the news aggregation and discussion website. At the time of writing, it had 1.1 million active users out of a total of 6 million. By comparison, the number of users on other top groups like /r/AskReddit were 71,000 active users out of 31 million. Active users on /r/Pics 40,000 out of 29 million.
The WSB group’s astonishing success has the investors monitoring the group carefully, and FTX has designed what may prove to be a very popular solution indeed.
Disclosure: The author held Bitcoin at the time of press.
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