Latest news with #JohnMurillo
Crypto Insight
a day ago
- Business
- Crypto Insight
Tokenized equity still in regulatory grey zone — Attorneys
Tokenized stocks and private equity may face several legal challenges, as the emerging real-world asset (RWA) sits in a gray zone that does not grant holders the same legal rights as traditional asset owners, according to industry executives and attorneys. In an email to Cointelegraph, John Murillo, chief business officer of fintech company B2BROKER, said investors should understand the fundamental attributes of any prospective tokenized equity instruments, including any dividend streams, profit-sharing arrangements, or whether the tokenized RWAs simply provide capital appreciation to the holder. The executive said: 'It is crucial to understand that investors do not own actual shares; they hold tokens issued by intermediaries, which may entitle them to payouts if the underlying shares increase in value or are sold. 'There is no direct claim on company assets, no voting rights, and no access to internal financial information,' Murillo continued. This important distinction came into sharper focus after the mixed-asset trading platform Robinhood announced offering OpenAI and SpaceX 'private equity' tokens to European users, prompting OpenAI to clarify that the tokens are not equity in the company. 'I believe it's reasonable to expect that incidents like the 'OpenAI Token' event will recur, where retail investors are marketed tokenized securities in a way that creates material confusion,' attorney Tyler Yagman of the Ferraro Law Firm told Cointelegraph. Despite the confusion, tokenized equities provide a 'compelling' use case, which 'integrate multiple functions of a securities marketplace into a single technology,' Yagman added. The attorney called for clear and comprehensive regulations for tokenized equity instruments, which 'democratize' access to previously inaccessible asset classes. Crypto firms push for tokenized equities trading in the US to a receptive SEC Robinhood is far from the only brokerage firm exploring tokenized equities trading; the platform joins a growing list of crypto titans actively pushing for tokenized stock trading or already offering those services. Tokenized stock trading is already live on crypto exchanges Kraken and Bybit, with over 60 publicly listed companies available for trading across both platforms. Centrifuge, a blockchain platform that integrates RWAs into decentralized finance (DeFi) applications, announced a partnership with the S&P Dow Jones Indices to tokenize the S&P 500 stock market index. Crypto exchange giant Coinbase is reportedly seeking approval from the United States Securities and Exchange Commission (SEC) to offer tokenized stock trading to its customers. The US SEC, under the leadership of chairman Paul Atkins, is reportedly receptive to industry requests pushing for tokenized financial assets. 'Tokenization is an innovation. And we at the SEC should be focused on how we advance innovation in the marketplace,' Atkins told CNBC on Wednesday. Source:
Yahoo
19-04-2025
- Business
- Yahoo
Best Buy Stock: 4 Experts Argue Pros and Cons of ‘Buying the Dip' Amid Trump Tariff Drama
To call the stock market 'volatile' over the past two months would be an understatement. Still, volatility sometimes creates buying opportunities. Best Buy (BBY) stock has fallen roughly 37% in the past six months, and most of that came in the past six weeks. Be Aware: Check Out: If you've been considering buying Best Buy stock, does now offer a good opportunity to buy? Here's what stock experts have to say about buying this stock amid the tariff drama. At its current price ($61.23 as of April 17), Best Buy could be underpriced. 'The stock is currently trading below its fair value,' said John Murillo, chief dealing officer of B2BROKER. 'While there is a potential upside if and when the sentiment towards the tariff talks improves, it's not immediate or guaranteed.' The consensus on stock analysis platform Zacks agrees, with an average brokerage recommendation of 2.17 (out of five, with five representing a 'Strong Sell' recommendation). Best Buy also has a low price-to-earnings ratio of just 9.35, according to Morningstar. Read Next: Murillo cautioned, however, that Best Buy remains extremely exposed to tariffs on Chinese imports. 'Let's not forget that the biggest U.S. electronics and home appliances retailer was punished for a reason — namely, tariffs. Best Buy faces harsh headwinds since most of its retail items are imported from China,' he said. That said, it remains to be seen exactly how those tariffs will unfold. Javier Palomarez, CEO of the U.S. Hispanic Business Council, pointed out just how quickly the tariff rules keep changing. 'While Best Buy was initially impacted by the extreme tariffs on China, we have since seen various exemptions for smartphones and other electronics,' he said. Just beware that trying to predict the final tariff tally remains pure speculation at this point. Electronics retailers like Best Buy are vulnerable to recessions. And the risk of recession looks awfully high right now, with J.P. Morgan forecasting it at 60%, per Reuters. 'Though initially driven by speculation, Best Buy's stock dip could be worsened by the development of a recession,' Palomarez said. Even before all the talk of tariffs and heightened recession risk, Best Buy hadn't exactly impressed with its performance. 'Best Buy has been lagging behind investors' expectations for many quarters in a row,' Murillo said. 'Their fiscal year 2024 sales came in at $13.9 billion, posting a drop of 5%.' David Capablanca, stock trader and host of 'The Friendly Bear' podcast, also sees reason for pessimism. 'Best Buy could end up like Blockbuster Video in the early 2000s, just phasing out. They've been cutting down on their stores, and with Amazon and other online retailers eating into their business, I don't think Best Buy is a good long-term hold.' When you try to outsmart the rest of the market by timing it right, you have to be right twice. You have to buy near the bottom and then sell near the top, and in the moment, neither of them feels like the bottom or the top. Chad Gammon, owner of Custom Fit Financial, emphasized this point: 'Whether it's Best Buy stock or other stocks or funds, we don't advise buying at perceived dips. Market timing is extremely difficult, even for professionals.' Instead, consider dollar-cost averaging. Buy the stocks or funds that you like at regular intervals — such as every paycheck — and then simply let time and compound returns do the heavy lifting for you. More From GOBankingRates Mark Cuban: Trump's Tariffs Will Affect This Class of People the Most4 Affordable Car Brands You Won't Regret Buying in 2025How To Get the Most Value From Your Costco Membership in 20255 Types of Vehicles Retirees Should Stay Away From Buying This article originally appeared on Best Buy Stock: 4 Experts Argue Pros and Cons of 'Buying the Dip' Amid Trump Tariff Drama Sign in to access your portfolio
