Tokenization Sparks Liquidity Dilemma, Tristero Research Cautions About Financial Instability
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Liquidity Paradox in Tokenization: Tristero Research warns that the tokenization of slow-trade assets like real estate and commodities is creating a liquidity paradox, reminiscent of the 2008 financial crisis, where rapid trading on Blockchain can lead to significant discrepancies in asset values and potential market collapses.
Emergence of RWA-Squared Products: A second wave of asset tokenization has introduced derivative products known as "RWA-squared," which, despite seeming to diversify risk, actually connect all assets to a fragile infrastructure, increasing vulnerability to systemic failures and necessitating stronger compliance and collateral standards.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
