Tesla CEO Elon Musk shows how cryptocurrency trading can ruin the weekends for stock traders
Musk’s Twitter followers recommended he sell 10 percent of the carmaker’s stake,
The crypto revolution has done many things: Transformed images of dogs into digital gold, lured talent and real dollars from Wall Street, and introduced a confusing array of jargons into mainstream finance. And now you can add this: Shows what will happen in the stock market in advance.
Tesla Inc.̵[ads1]7;s shares rose Monday morning, but crypto monitors already knew it was likely. This is because this weekend, after Elon Musk’s Twitter followers advised him to sell 10 percent of his stake in the carmaker, digital tokens related to the real shares had fallen.
The US stock market closes for the weekend at 20:00 New York time on Fridays, and does not reopen until 04:00 on Monday. But crypto runs 24/7/365. It allowed traders on the FTX exchange and other arenas to bet on Musk’s tweets on Sunday and early Monday. They were mostly right
Photo credit: Bloomberg
The real stock closed at $ 1,222.09 on Friday and fell as low as $ 1,133 when trading resumed on Monday. Tesla tokens ranged on Sunday between about $ 1110 and $ 1170 on FTX.
Such tokens, for Tesla and other well-known companies, are not actually issued by the companies themselves. FTX products are backed by genuine Tesla shares owned by a company called CM-Equity, and tokens “can be redeemed with CM-Equity for the underlying shares if desired,” according to FTX’s website. They are not available for trade in the United States and other prohibited jurisdictions.
Traditionally, stock traders could disconnect until at. 18.00 New York time on Sundays, when the S&P 500 and other index futures resume trading on CME Group Inc.’s exchange after a weekend break. But now, with crypto rapidly becoming more mainstream, these days could be numbered.
(Apart from the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
