Michael Burry: "Stock Trading on Blockchain Will Collapse into a Huge Bubble"...Warns of the Collapse of Humanity

▲ Blockchain, Tokenization/ChatGPT Generated Image

Investor Michael Burry, known as the real-life protagonist of the movie 'The Big Short,' expressed strong concerns about the trend of tokenizing traditional stocks on the blockchain and trading them. He warned that a future where digital value is embedded in everything could weaken human relationships and diminish human value.

According to Benzinga on May 20 (local time), Burry reacted on X (formerly Twitter) to reports that the U.S. Securities and Exchange Commission (SEC) is preparing to launch a framework for trading cryptocurrency versions of major Wall Street stocks. Burry expressed a pessimistic view of this trend, referring to it as a "Snow Crash-style future."

Snow Crash is a 1992 science fiction novel by Neal Stephenson. The work depicts a future where hyper-capitalism and corporate-controlled zones spread, and people spend much of their time in the metaverse, a virtual reality world. Benzinga reported that Burry interpreted the current trend of tokenized stocks as linked to such a dystopian future.

Burry warned to the effect that "embedding digital value in everything will erode personal relationships and devalue humanity." He also added, "Now might be the time for any future entity to stop moving forward."

Other market participants showed mixed reactions. Some X users argued that tokenized stocks could be positive in terms of individual ownership, as they allow holding stocks without disclosing one's identity. Another anonymous user, peeks, interpreted Burry's remarks as a short-term bullish signal for crypto stocks. He said, "This is very bullish in the short term, enough to become a huge bubble, problem, and collapse."

Burry's latest warning comes after he stated that he was learning about tokenization. Last December, he mentioned that he was "learning" about tokenization, referring to the spreading trend of tokenization on Wall Street. Benzinga reported that Burry's warning came at a time when regulators and companies were beginning to recognize the potential of blockchain technology and tokenization.

According to Benzinga, the SEC approved a rule change in March allowing Nasdaq to support the trading of tokenized stocks on its exchange. Burry views the spreading trend of cryptocurrency versions of traditional stocks not merely as a financial innovation, but as a change that could shake human relationships and social structures.

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