We've written about tokenized shares before, but haven't delved into their structure. Read on to learn what they are and how they work.
What they are: Digital tokens on the blockchain that replace company shares and legal shares.
How they work: Issued on a licensed platform; one token usually represents a fraction of a share; rights are exercised through smart contracts.
Rights granted: share ownership, potential dividends, and voting rights (depending on the platform).
Differences from regular shares: Recorded on the blockchain; fractional shares—you can only buy a fraction of a share.
Advantages and risks: Pros: Accessibility, 24/7 trading on some markets; Cons: Regulatory differences, smart contract bugs, key storage, and liquidity.
The price of a tokenized share follows the stock thanks to oracles (price feeds) and arbitrageurs.
Want to buy a tokenized share? Nothing could be simpler – just visit AlfaBit and choose the one that's right for you! Trading will delight you with a user-friendly interface, including market and limit orders. Nothing complicated – it's just like token trading. Here are some of the most popular tokenized stocks among our users: NVDAX, TSLAX, AAPLX, CRCLX, HOODX, METAX, GOOGLX.
