Today my friend told his idea. He said he would create "game" platform where people can buy & sell "virtual coin" that follows real world commodity price, but have no intrinsic value by itself

For example, one can buy CTSLA (short for TSLA coin) now with real money, and then sell later when real TSLA stock price rise to another platform users

Owning this "virtual currency" doesn't mean hold any real shares to company stock (more like in-app currency like diamond commonly found in games to buy items)

So only the price that reflect real world price (from precious metals, company stock, agriculture, etc). The rest is simply trading game, all transaction can only done inside the platform

I wonder if this even allowed? Wouldn't he need trading platform license too? As he keep insisting "it's just a game"

  • $\begingroup$ This is not the right site for this question, but apart from issues such as trademarks, who would ensure that the price in the platform would match the price in the real market? I.e if I buy CTSLA at 200 (perhaps initially from the developer) and TSLA then rises to 250, who promises to buy my CTSLA at 250? If this is in effect an investment with real money, the SEC might be interested $\endgroup$
    – Henry
    Commented Feb 7, 2023 at 10:52
  • $\begingroup$ I don't see any issues with price matching, as these data can be easily obtained in real time (just like google does), and people in the platform can always cross-checking them with other sources if they're unsure. I'm quite positive he would need at least banking license, since there's clearly transfer of wealth (as opposite to common in-app credit that's not transferrable nor withdrawable, unless done in secondary market) $\endgroup$
    – gardin
    Commented Feb 7, 2023 at 11:39


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