Liquidity for Private Investors

This week’s Panic with Friends, as always, was a deep dive into the Golden Age of Finance. It didn’t disappoint. Towards the end of the interview, Sam asked Howard what’s the one product, trading related, you would really love to see somewhere? One you’ve never seen, or you’ve seen, but not in a way that’s really accessible?

Howard’s response: Liquidity for private investors. Maybe you’re in Robinhood, or Uber (back in the day), or whomever; but you want to take some money off the table before they go public. There isn’t an efficient way to do that.

Sam says you shouldn’t be beholden to the NASDAQ; the future “product” would be a way to collateralize your private investments. A “token” collateralizing your private investment without having to sell it would give you the opportunity to trade elsewhere.

Howard thinks this that last gap, and a big one. It allows private investors to leave some money on the table for someone else who’s willing to take the risk, while the investor can continue to live a normal life. Maybe not sexy, but a small little gap, that as soon as it gets filled will lead to a lot more happiness and volatility and liquidity. More liquidity will create a stronger kind of global economy. There’s much creativity left, and much room to innovate on these types of products.

You can catch the entire interview on your favorite podcast app: Sam Bankman-Fried of FTX on Futures, the Global Scale of Crypto and More (EP.159)

Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. Tao of Pete has a disclosure policy.

Originally published at https://taoofpete.substack.com.