Exchange Tokens Are Skyrocketing as They Act More Like Equity; That Could be ...
Centralized exchange tokens have been skyrocketing this year, but there is one problem behind the astonishing performance: they are becoming more equity alike.
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With both types of tokens forming the bulk of crypto-asset purchases, both utility and equity tokens serve different purposes. Read here! Utility tokens vs. equity tokensInvestors familiar with the concept of equity investing will find equity tokens to be an extension of the same thought process as initial public offerings while those with a riskier appetite can venture into plonking their capital on the utility tokens in which they believe.One glaring difference between utility and equity tokens is the fact that the former is not regulated as they provide access to a service rather than a....
Bitfinex has announced that it has formally signed a letter of intent with the online investment platform BnkToTheFuture to provide solutions towards compensating customers with equity in Bitfinex. The BnkToTheFuture platform for financial innovation and technology investment opportunities will be providing a Special Purpose Vehicle (SPV) through which qualifying BFX token holders can contribute their tokens in exchange for an equity interest in compliance with their individual jurisdictions. Exchanging BFX tokens for equity in iFinex Inc. Following a hack on its system on August 2 and....
Bitfinex customers may soon have a way to convert the digital assets they were issued following the exchange's decision to socialize losses into equity in the company. Weeks after a debilitating hack, Bitfinex has signed a letter of intent with UK investment platform BnkToTheFuture that finds the two firms collaborating to enable the redemption of BFX tokens for equity in iFinex Inc, its British Virgin Islands-based parent company. Introduced when the exchange came back online on 11th August, BFX tokens are meant to make up for the 36% customer losses imposed after the incident. Issued to....
Bitfinex has announced that many of its largest BFX token holders have agreed to exchange over 20 million BFX tokens for equity in the company, marking a step in its recovery following the August theft of approximately 119,756 bitcoins valued at more than $70 million. The equity consists of shares of Bitfinex’s owner, iFinex Inc. “This is a significant step towards the recovery and stabilization of our company,” said Philip Potter, the company’s chief strategy officer. “ He added: We are very pleased with this highly favorable trend of conversions. Since the theft more than two months ago,....
Shortly after the exchange launched stock token trading, German and British financial regulators are reportedly looking into whether the offering complies with securities laws. Cryptocurrency exchange Binance's latest product — digital stock tokens representing fractions of equity shares like Tesla and Coinbase — is reportedly being studied by European and British regulators over its possible non-compliance with securities laws.A new report from the Financial Times claims that regulators are concerned the tokens may not provide sufficiently transparent corporate disclosures, specifically....