Tokenized Crypto Treasury Companies enlarge the risks of PABAGU -CHANGE OF ASSETS: EXECS

Digital Asset Treasury (DAT) companies tokenize their stocks in the blockchain compound the risks to investors and their own businesses, according to some crypto industry executives.

“Blockchain Trade 24/7, while traditional markets have a specific operation time,” Kadan Stadelmann, chief officer of the Comodus decentralized exchange platform, told Cointelegraph.

The price movements of sharp onchain that occur outside the traditional operating time of the market can lead to a running stock of a treasury company that has released both tokenized and traditional shares, without a company with sufficient time to respond to a hit hit.

Smart contract risks Through the exploitation of the code or the risk of hacking both underlying funds held by the Crypto Treasury Company and the tokenized shares will further increase the risk, Stadelmann added. Kanny Lee, the CEO of Decentralized Exchange Secondswap, said:

“The tokenizing dat equity creates a synthetic on top of a synthetic. Investors end exposed twice, once in volatility of treasury crypto and again in the complexity of equity equity, management, and security law. That’s a lot of risks at the same time.”

Tokenized stocks are gaining popularity as Dose -Docated companies now have tokenized sharingand the US Securities and Exchange Commission (SEC) is teasing 24/7 capital markets. However, the lack of legal clarity leaves tokenized stocks in a Regulatory Gray Zone.