How the ‘Dole Stock Crisis’ is Reigniting the Push for Blockchain
Earlier this year, a rare window opened into the way the stock market currently operates when a class action lawsuit revealed that there were recently 12 million more shares of Dole Foods than the company thought existed.
Patrick Byrne, Overstock CEO, in 2004 first encountered the so-called ‘slop’ in the financial system resulting from two main issues: 1) it takes three days for a trade to settle, and 2) the beneficiary of a stock rarely ever actually owns the stock, but rather an IOU.
Byrne describes the Dole discrepancies as an “expression” of the way the current system is “architected”, adding that without a certainty of how many stocks actually exist at any time, the price people are paying is little more than a guess at the actual value.
Blockchains, Byrne argues, both clarify who actually owns the stock, and make the time between when a stock is sold, and cleared, nearly instant.
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