kaal:claim:3411110-019

A blockchain based offering routed through a single broker produces a specific cluster of risks, including limited price discovery, no market making and therefore less liquidity, constrained short selling, impaired best execution, and no print to a tape or national exchange.

Source quote, verbatim

Several additional risks are associated with the limited trading and associated limited material liquidity that results from a blockchain-based offering involving only one broker.

From

Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019), IV.1 Limited Liquidity, p. 19
https://ssrn.com/abstract=3411110 · source PDF

Cite as

Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110

Holds when

offering structures with only one authorized broker-dealer
single non-scalable ATS

Classification

failuresupport: arguedfailure: single broker liquidity trapfamily: liquidity-and-market-structure-failuredefieconomics

Verify

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