Tokenized Crypto Treasury Companies Magnify Risks of Volatile Assets: Execs

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Digital asset treasury (DAT) companies that tokenize their stocks on the blockchain compound the risks to investors and their own businesses, according to several crypto industry executives.

“Blockchains trade 24/7, whereas traditional markets have specific hours of operation,” Kadan Stadelmann, chief technology officer of the Komodo decentralized exchange platform, told Cointelegraph.

Sharp onchain price movements that occur outside of traditional market operating hours could lead to a run on the stock of a treasury company that has issued both…



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Tokenized Crypto Treasury Companies Magnify Risks of Volatile Assets: Execs


Digital asset treasury (DAT) companies that tokenize their stocks on the blockchain compound the risks to investors and their own businesses, according to several crypto industry executives.

“Blockchains trade 24/7, whereas traditional markets have specific hours of operation,” Kadan Stadelmann, chief technology officer of the Komodo decentralized exchange platform, told Cointelegraph.

Sharp onchain price movements that occur outside of traditional market operating hours could lead to a run on the stock of a treasury company that has issued both…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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