Someone explain to me like I’m 5 how tokenization makes it possible to trade private companies. Wouldn’t that mean that the owners of those private companies are somehow issuing tokens related to their ownership?
Or is this yet another magical crypto thing where we collectively agree/imagine that tokens are somehow pegged to private companies, without any direct ownership to said companies?
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Someone explain to me like I’m 5 how tokenization makes it possible to trade private companies. Wouldn’t that mean that the owners of those private companies are somehow issuing tokens related to their ownership?
Or is this yet another magical crypto thing where we collectively agree/imagine that tokens are somehow pegged to private companies, without any direct ownership to said companies?
It's naked forwards, except with even less regulation.
Matt Levine has a good rundown here: https://www.bloomberg.com/opinion/newsletters/2025-06-26/any...
Thanks
Makes me wonder what happens if/when the next WeWork or Theranos rolls around, and people are invested via these types of trades.
Equity of private companies is bought from employees and investors (not real equity, often, but promise to give equity after exit), then tokenized