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Cryptocurrency executives: Tokenization of DAT shares increases investor risk

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2025-10-04 19:04:10
Kanny Lee, CEO of decentralized exchange SecondSwap, said: Digital asset repository (DAT) companies that tokenize shares on the blockchain exacerbate the risk for investors and their own businesses. Tokenization of DAT equity is equivalent to recreating a synthetic asset on top of a synthetic asset. Investors end up with a double risk: one is the volatility of cryptocurrencies in treasury securities, and the other is the complexity of corporate equity, governance and securities laws. This adds significant risk to an already volatile asset.
Violent on-chain price fluctuations that occur outside of traditional market hours could result in a run on the shares of a finance company that has issued tokenized and traditional shares, leaving the company with insufficient time to respond to price shocks.
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