Risk and Investment Strategy of "Securities Digital Assets"
In the previous article, I shared with you the risks and investment strategies of native digital assets and token assets in the investment process. Today I will share with you the risks and investment strategies of securities digital assets in the investment process.
1. Characteristics of securities assets
Securities digital assets are represented by platform currency, which is what we call exchange platform currency, typically BNB, HT and OKB.
The platform currency of the exchange is closely related to the interests of the platform, and the innovation and business operation capabilities of the platform will affect the value of the platform currency. As the most commercially valuable business form in the blockchain industry, the platform currency of the exchange relies on its own huge commercial value, and its asset value potential is constantly released.
It is said that this type of asset is a securities asset because it represents the equity of the project operated by the asset issuer. When the project party makes a profit, it will share part of the income with the holder; some major operating decisions of the project party will also be made by the holder. Currency holders vote to decide.
Let's take Binance's platform currency BNB as an example to see how BNB plays a role similar to stocks in the system.
Binance will take out 20% of the profit every quarter to share dividends with currency holders. But this dividend model is different from traditional stock dividends. The dividend of traditional stocks is that each share holder gets cash according to the shareholding ratio. However, because Binance cannot make detailed statistics of each BNB holder and distribute cash directly to the holder, it destroys the platform currency instead. When BNB is destroyed, the supply will decrease, and the price will rise, and the holders will share the benefits.
BNB holders have another right, that is, when Binance chooses to list coins, some projects will let BNB holders vote to decide which project gets more votes, and which project will be listed on the exchange. In the traditional stock market, when a listed company holds a general meeting of shareholders to make decisions on major issues of the company, it is voted by shareholders. The more shares they hold, the greater the weight of shareholder votes. So BNB is similar to stocks in this regard.
Because of these two characteristics, the platform currency is very similar to the stocks we see in the traditional stock investment market.
2. Risks of securities assets
The risk of such securities assets is almost the same as that of stocks in traditional stock markets.
The biggest risk of stocks in the traditional stock market is that the poor management of listed companies leads to the poor operation of the company and the inability to make profits, which leads to a decline in stock value. In the same way, the biggest risk of this type of security token is that the poor operation of the project side makes the project unsustainable and unprofitable, and the project tokens eventually return to zero.
The most important thing for an exchange platform to be profitable is to have popularity and participants to trade on the platform. Therefore, all exchanges have tried their best to acquire new users while retaining old users. Especially in the current bear market environment, the snatching of user traffic is the focus of various exchanges. Therefore, we have seen that various exchanges have resorted to various tricks to give various discounts and benefits to users who hold platform currency.
However, there are already hundreds of exchanges, and there is no special technical threshold in this industry, so many small and medium exchanges are actually struggling to support. Closing is possible at any time when the flow of funds dries up and the platform can no longer sustain itself.
3. Matters that investors should pay attention to when investing in such assets
As an investor, the most important criterion for judging the risk of such assets is the credit and strength of the project operator. The project operator has good credit and strong strength. Generally speaking, the continuous operation of the project is guaranteed. If the project operator does not have credit accumulation , and the strength is average, then the project has greater risks.
Going back to the case of the exchange, for our investors, the easiest way is one: choose the platform currency of the top exchange. For small and medium-sized exchanges, no matter how much temptation they offer, don't easily participate.
