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Securitize (SECZ), BlackRock’s tokenization partner, falls 20% after earnings miss

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Securitize (SECZ), BlackRock's tokenization partner, falls 20% after earnings miss

Securitize (SECZ) shares plunged 20% in after-hours trading Wednesday after the tokenization firm fell short of Wall Street’s second-quarter expectations in its first earnings report since going public last month.

The company, best known for issuing and managing BlackRock’s BUIDL tokenized money-market fund, reported revenue of $14.4 million, down 5% from a year earlier and missing analyst estimates of $20.6 million.

Securitize posted a $2.37 per-share loss, compared with an expected loss of just $0.15 per share. Its net loss totaled $21.7 million, while adjusted EBITDA swung to a $5.5 million loss from a $1.8 million gain a year ago.

Wall Street has grown increasingly excited about tokenization, the effort to bring funds, equities and other financial assets onto blockchain rails. Securitize sits at the center of that push, but the growing interest has yet to materialize as sustained revenue growth.

CEO Carlos Domingo called the quarter “softer” when reporting earnings on Wednesday, while pointing to a stronger start to the year. First-half revenue remained 16% higher year-over-year, including a record $19.5 million in the first quarter.



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Options trading vs. stock trading: Key differences explained

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Options trading vs. stock trading: Key differences explained


Both options and stocks can deliver quick profits amid substantial risk. Beyond that, these two trading instruments work very differently. Those differences affect your profit potential, loss exposure, and the skills you need to trade successfully. Here’s what you need to know.

Trading options vs. stocks at a glance 

Option contracts are sold by option writers (sellers) to option holders (buyers). The price paid for the contract is called the premium. The contract itself gives the holder the right to buy or sell an underlying security at a stated price within a defined time frame. If the holder chooses to proceed with the transaction, called exercising the option, the writer must fulfill it. 

Stock trading involves actively buying and selling ownership shares in a company. Once a stock trade is complete, the buyer and seller in the transaction have no further obligation to one another. 

The table below outlines how stock trading differs from options trading in terms of ownership rights, capital required, risk, time horizon, and income potential.

How stock trading works 

Stock traders actively buy and sell stocks to produce short-term capital gains. This activity is separate from investing, which involves decades-long holding periods and compounded returns over time.

The basic stock-trading strategy is to buy shares at a lower price and then sell them quickly at a profit. This is not guesswork or good luck. Short-term traders monitor stocks closely and identify events that can move prices higher or lower.

For example, the markets may overreact to a negative headline, pushing a stock below its fair value. Short-term traders capitalize by purchasing the stock when it’s down, assuming the low price will be temporary. If it is and the stock price rises later, the trader can sell the position at a profit.

Stock trading risks 

The primary risk is that the stock price won’t move in the right direction quickly enough for the trader to sell and recoup the funds. Traders require available cash to take advantage of time-sensitive opportunities as they arise. Having capital tied up in positions that didn’t appreciate as expected either slows trading activity or forces the trader to sell, incurring losses.  

Many short-term traders use borrowed funds to invest, which increases risk. Buying on margin, as it’s known, raises the trader’s loss potential and adds interest costs. Borrowed funds must be repaid, no matter how the stock performs.

How options trading works 

There are two sides to every options contract, and each side has its own goals and risks. Options holders, or buyers, pay premiums for the right to buy or sell securities at a certain price within a defined time frame. If the security moves in the right direction, the option contract increases in value. The holder can sell the contract profitably or exercise the option to make a profit.

For example, consider an options contract that allows the holder to buy 100 shares of Walmart (WMT) stock at $95 per share. If the market price of Walmart stock suddenly rises from $95 to $110, this contract gains value. In the reverse, if Walmart stock falls to $90, the option to buy it at $95 is worthless.

Option writers (sellers) earn income by collecting premiums from holders. They keep the premium regardless of how the underlying security performs, but they must fulfill the contract if a buyer chooses to exercise it.

Explore options contracts with AlphaSpace

Options trading risks 

Option holders risk losing their entire investment. If the security moves in the wrong direction, the options contract expires without value.

Writers risk having to complete an unprofitable transaction, such as selling Walmart stock for $95 per share when the market price is $110.

The writer’s loss potential depends on whether the option is covered or naked. A covered position is backed by shares or cash, while a naked position has no backing. If the seller already owns Walmart stock, the loss involves missing out on the gains above $95. If the seller doesn’t own Walmart stock, the losses could be substantial. 

Which has more risk: Options trading or stock trading? 

Risk varies across and within the different types of stock and options trading. A general ranking of these activities from lower to higher is as follows:

1.        Selling options on stocks you own

2.       Short-term stock trading with cash

3.       Buying options  

4.       Short-term stock trading on margin

5.       Selling naked options

There are two caveats here: First, the nature of a specific stock or options contract can add substantial risk, such that this activity ranking no longer applies.

Second, buying options is ranked as riskier than short-term trading because the probability of losing your entire investment is higher compared to stock trading. Even so, stock trading can result in larger losses in dollar terms. This is because buying stock shares outright usually costs more than buying options on the same number of shares.  

Is options trading or stock trading better for beginners? 

Options and stock trading are short-term activities that require a nuanced understanding of market dynamics and stock prices. Neither is as appropriate for beginners as long-term investing.

Confident long-term investors can move into selling covered options as a strategy to generate income from their portfolio. The next step would be short-term trading rather than option buying. Short-term trading is simpler to understand because the goal is straightforward: Buy low and sell high.

Can you use options trading and stock trading together? 

You can use options and stock trading together. Advanced traders will buy options on stocks they trade as a strategy to reduce their loss potential. This involves taking an options position that gains value if the stock price falls. The earnings on the options contract would offset the losses you incur owning the stock, while the cost of the options (the premium) would reduce any gains.

Options trading vs. stock trading FAQs 

Can options trading wipe out your account?

Yes, options trading can wipe out your account. Option buyers can lose their entire investment, and option sellers without collateral can realize unlimited losses. Active trading in risky positions can quickly consume a lot of cash.  

Is options trading riskier than stock trading?

Options trading can be riskier than stock trading, partly due to complexity. Buying options comes with a higher risk of losing the entire investment. For context, 30% of options expire worthless, according to widely quoted Chicago Board Options Exchange (CBOE) data. When that happens, buyers lose their full premium. 

Selling options carries the risk of having to execute an unprofitable transaction. Losses there could be potentially unlimited if the seller does not have cash or stock backing.

Do options traders make more money than stock traders?

Options traders can make more or less than stock traders. Options can offer greater percentage returns, but the probability of a total loss on each contract is higher. Generally, options are more complex and harder to execute successfully.  

Editorial disclaimer: Information on this page is for educational purposes and not investment advice or a recommendation to buy any specific asset or platform or adopt any particular investment strategy. Independently research products and strategies before making any investment decision.



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Canva was the rare startup that grew fast and made money—then AI cut its growth forecast by a third

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moneyvests
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Canva was the rare startup that grew fast and made money—then AI cut its growth forecast by a third

Canva has spent years proving that it can do something many high-growth startups struggle to achieve: grow rapidly while making money. Then came generative AI.

The design-software company cut its expected revenue growth rate by a third to 20% after the unexpectedly high cost of delivering AI features prompted it to slow its rollout. Canva CEO and co-founder Melanie Perkins told Fortune users’ demand for new AI features “significantly exceeded” the company’s expectations, 

“This validated the demand, but also showed us we needed to reduce the cost of completing an AI task to support a broad rollout,” Perkins said over email. “Rather than broadly rolling out a product before the underlying economics were ready, we decided to slow the rollout while we rebuilt the architecture, reduced unit costs and strengthened the business model.”

The cost problem lands at a pivotal moment for Canva because AI is central to its effort to become a broader workplace-software platform. Perkins previously told Fortune that the AI market was too fragmented, and Canva has since added tools including Canva Code as it seeks to expand beyond design into enterprise workflows. 

This illustrates a broader dilemma spreading across the software industry: Companies can’t afford to sit out the AI boom, yet embracing it can undermine the lucrative economics of the businesses they are trying to protect.

“AI is making SaaS no longer a zero marginal cost solution, which has really been what I would call a lot of software’s secret sauce up until now,” Derek Hernandez, Pitchbook’s senior research analyst covering the intersection of SaaS and AI, told Fortune. “People want a much more capable product and solution, which through today’s technology means cost of usage is becoming a really global challenge for all of these companies.”

Perkins said in her email that Canva has reduced the cost per task by nearly 90% since launching Canva AI 2.0 in April, an agentic upgrade to the Canva platform, but with Canva AI users creating three times as many designs as in the previous version of Canva AI, the company is focusing on improving its economics. Figma, Canva’s public-market parallel, has disclosed its version of AI trade-offs: Its free-cash-flow margin fell to 14% in the second quarter from 27% in the first, forecasting third-quarter revenue growth at 36%, a deceleration from its June quarter 48%. 

AI costs compress margins for SaaS

Hernandez told Fortune that Canva and Figma are the “biggest signals” that AI is breaking SaaS’s traditional model, as rising inference expenses—the recurring cost of processing AI requests—now show up as slower growth for Canva and margin compression for Figma.

“If you have a basic analogy of a car, everything it takes to build a Ford F150 would be training, and then gas, mechanic costs, and anything else would be inference, because that’s the point of using the product,” Hernandez explained. “Canva and Figma both hit the same wall about five days apart, but they cited it in different places.”

The AI cost reset carries particular weight as Canva evaluates a potential IPO. Fortune reported last year that an employee share sale valued Canva at $42 billion when experts said the company could go public in 2026, though now Hernandez told Fortune Canva might be targeting a time next year. By “making the decision to basically tap the brakes” on the AI rollout, Canva is thinking of investors. 

“I’m sure they’re trying to protect their profitability, especially if they want to go to public investors,” Hernandez said. 



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Prediction markets should dial back faulty filings for incentives to boost trading: CFTC

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moneyvests
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Prediction markets should dial back faulty filings for incentives to boost trading: CFTC

Like any regulated trading platform under authority of the Commodity Futures Trading Commission, prediction markets firms try to encourage heavy traders and for firms to act as market makers in ways that can deepen participation and trading volume. But the CFTC is concerned about how they’re doing it, according to guidance issued on Wednesday.

The U.S. derivatives regulator cautioned the event-contracts platforms that it’s seeing an increase in their filings in pursuit of incentive programs, and they are often “procedurally or substantively deficient,” the document said. That hinders the agency from figuring out whether the platform “has provided adequate notice of the terms of the program and sufficiently evaluated the program’s compliance.”

The CFTC is seeing some of the features of these rewards programs “present compliance concerns.” Some of the rewards for high-volume participants can encourage them “to trade solely to reach volume targets, heightening risks of wash-trading, pre-arranged trading, or other fraudulent, manipulative, or disruptive trading practices.”

And market-maker programs, in which firms are encouraged to handle either side of a market, have been guaranteeing net process or to cover losses “through stipends and rebates,” which the regulator warned could also encourage fraudulent behavior and market manipulation.



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Uniswap slides 10%, below key support level: Will sell pressure lead to more losses?

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moneyvests
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Uniswap slides 10%, below key support level: Will sell pressure lead to more losses?


Uniswap [UNI] is under massive downside pressure. After holding between $3.9 and $4, this consolidation range broke down. As a result, $3.9, which has acted as support the past week, failed to hold, with UNI plunging to a low of $3.4.

As of this writing, Uniswap was trading around $3.5, marking a 10.5% drop on the daily charts. However, the altcoin trading volume surged 151.8% to $319 million, suggesting rising activity on the sell side.

Uniswap $3.5 million in long liquidations sparks panic

This sudden market drop triggered a massive wave of long liquidations. According to CoinGlass data, over $3.25 million worth of long positions were liquidated. 

Uniswap Liquidation
Source: Coinglass

With the risk of liquidation surging, traders who had long positions panicked and increased spending significantly. 

Over the last 24 hours, UNI saw $137 million in Futures outflows compared to $106 million in inflows. As a result, the altcoin’s Futures netflow dropped 328% to -$31 million, a clear sign of aggressive selling in the Futures market. 

Uniswap futures inflowsUniswap futures inflows
Source: CoinGlass

The increased selling activity on Futures further weakened the market, leading to a price decline.

Spot sellers show more determination

After Uniswap [UNI] failed to defend the key support level, traders, especially on the Spot, panicked. Most of them sold their holdings, fearing making more losses.

Uniswap Exchange Inflow (Total) Uniswap Exchange Inflow (Total)
Source: CryptoQuant

Exchange activity confirms this bearish shift. According to CryptoQuant, Uniswap’s exchange inflow surged to 5.1 million while outflows also rose to 3.9 million. 

As a result, altcoin’s exchange netflow rose to a monthly high of 1.2 million. The rising inflows and outflows showed both buyers and sellers stepped into the market as the market slip continued. 

Uniswap Exchange Netflow (TotalUniswap Exchange Netflow (Total
Source: CryptoQuant

However, sellers showed greater determination and overpowered buyers. Historically, such market conditions have often preceded weaker price action and more losses on the price charts. 

What’s next for UNI?

Uniswap is overrun by sellers across the market, and the downside risk is higher than ever. For starters, the altcoin positive index continued to decline, falling from 26 to 19 at press time.

At the same time, the ADX rose from 34 to 40 while the negative index climbed from 14 to 13. When ADX and -DI are rising while the +DI is falling, it reflects strengthening downside momentum and weakened bullish momentum.

UNI ADX SMIUNI ADX SMI
Source: TradingView

The Relative Vigor Index [RVGI] further confirms this bearish structure, holding on a downtrend for five consecutive days. 

Taken together, these two indicators point towards the likelihood of some more losses on Uniswap’s price charts. Therefore, if selling pressure continues to rise from all directions, UNI is likely to lose the $3.4 support with $3.0 as the next key levels.

Final Summary

  • UNI declined 10%, breaching the $3.9 support level, to a three-week low of $3.4. 
  • Uniswap dropped as traders across the market panicked and hurriedly closed their positions. 



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Kalshi taps DoubleZero for Wall Street-style high-speed data feed

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moneyvests
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Kalshi taps DoubleZero for Wall Street-style high-speed data feed

The growing presence of financial institutions in cryptocurrency brings with it increasing demand for Wall-Street style systems in digital asset markets, such as servers that offer split-second advantages when executing trades.

Kalshi is looking to meet that demand by adding Solana-based DoubleZero’s low-latency market data feed to its prediction market order book.

The DoubleZero Foundation said this will provide trading firms with a machine-readable view of a prediction market for pricing, hedging and signal generation on Solana, one of the major layer-1 blockchains.

The foundation described DoubleZeroEdge as a transport layer, sending live exchange and onchain data over dedicated fiber, publishing the data and distributing it simultaneously to all connected traders.

In traditional finance (TradFi), institutions use specialized networks to access data at high speed, whereas in crypto, traders still largely rely on the internet. DoubleZero attempts to address that through a bespoke onchain system.

“This is the same distribution model that has underpinned traditional financial exchanges, from NYSE to Nasdaq to the CME, for decades,” the foundation said in an emailed announcement on Wednesday.



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