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One thought on “Blood Crypt”
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During the great modern gold rush earlier this year I spent some time thinking about what an MTG derivatives platform would look like. I actually think TCGplayer has most of the infrastructure in place to do this with the new TCGP Direct program. They have the processes in place for inventory, storage and drop shipping. Essentially the modification required would be for traders to pre-ship any cards they want to write options on to TCGP for their account inventory, plus a of margin account. This would allow for all sorts of covered derivatives, and be a very efficient way to speculate as it would prevent the need to ever ship if the buyer just wants to hold the cards in their own trading account.
The fact that the news has been full of the effects of massive UNcovered derivatives for the past decades has created a legitimate fear, but I think the risks be safely mitigated. I think this sort of platform allowing strictly covered derivatives would be beneficial and actually reduce price volatility. Spikes are frequently caused due to shipping time, so removing that barrier will smooth out the price action in many cases. Also the ability to take the other side of a bet introduces negative feedback further smoothing it out.