Carlos Domingo warns most tokenized stocks are unauthorized offshore paper with insider trading risks

Carlos Domingo, CEO of Securitize, used a Wall Street Journal piece on July 15 to fire a shot across the bow of the tokenized stock market. His core argument is straightforward: most tokenized stocks floating around crypto exchanges are little more than unregulated synthetic wrappers with no proper backing, no issuer authorization, and zero compliance with insider-trading rules. The 300% problem Domingo didn’t mince words, calling the current state of unauthorized tokenized equities a “can of worms” that will eventually “explode.” Some unauthorized tokens that claim to track the performance of major corporations like Apple and Amazon have shown price deviations of up to 300% from the actual underlying equity values. In many cases, there’s no relationship between the token issuer and the company whose shares are supposedly being represented. Nobody at Apple or Amazon signed off on these products. Nobody at those companies is ensuring accurate price feeds, proper custody of underlying assets, or compliance with securities regulations. Securitize’s counter-pitch Securitize became the first pure-play tokenization firm to list on the New York Stock Exchange when it completed a SPAC merg...