FTX, which is a popular cryptocurrency exchange, is listing tokenized silver stocks and futures. This was in response to the rising demand for the physical asset.
A news publication on cryptobriefing said that Sam Bankman-Fried’s cryptocurrency exchange added silver to its growing traditional assets list. This is because of a market surge due to a group of Reddit users.
If you thought the GME drama was over, you are wrong.
Silver found itself reaching a new high in almost 7 years and is up 20% since Thursday. With the rise in demand, the precious metal is running scarce among several established dealers.
Yahs Sojourners is a crypto analyst who had this to tweet on FTX adding silver stocks in a Reddit market that witnessed a surge.
FTX Adds Silver Stocks Amid Reddit-Led Market Surge https://t.co/GzNfl81RQo
— Yahs Sojourners (@YSojourners) February 1, 2021
Reddit seems to be an action-packed social media platform for a majority of users to hit back at the market. Last month saw GME, and now it is silver. FTX has no other option but to list more stocks.
The Sam Bankman-Fried cryptocurrency exchange added the stocks over the weekend. Just last week, FTX listed GME stocks for traders to speculate. Its investors were able to push the GME to $490 pre-market on Thursday.
Last week was undoubtedly one of the most unforgettable ones in the history of the trade market.
Why is the market turning to silver?
The weekend saw some activity on Reddit with their users on the subreddit r/wallstreetsilver.
Many were on active threads titled “Silver $25 to $1000 #silversqueeze.”
Surprisingly, investors are delved into silver as these threads argue that larger-scale institutions are immensely controlling precious metal’s prices. The original post read that large financial institutions are manipulating the price of metals.
You would be glad to know that silver is around $30 per ounce today. This makes it the highest it has ever been since 2013. That is almost after a gap of 7 years. Since Thursday last week, the precious metal was up 20%.
Silver dealers have woken up with the new development. Like SD Bullion, JM Bullion, and Apmex, a few of them are actively trading the physical asset and reported shortages. The dealers have expressed their inability to provide the silver products on time due to the unexpected demand.
One thing is sure, the movement of the market is going to be critical this week, as if the last month of the new year, 2021, had no action.