Trump Media and Expertise Group, operator of US President Donald Trump’s Fact Social platform, mentioned Wednesday it plans to roll out a blockchain token for shareholders that entitles them to perks and rewards.
The DJT token might be launched in collaboration with crypto trade Crypto.com, and the distribution to current shareholders set at a 1:1 ratio, or one token per share owned, in accordance with the announcement from the corporate.
The token “could” embody rewards and perks for DJT shareholders, together with reductions on the Fact Social media platform, the Fact+ media streaming platform, and prediction market Fact Predict.
Nonetheless, the token is just not a tokenized inventory and doesn’t entitle holders to shareholder rights or a declare on the corporate’s future earnings, Trump Media confirmed to Cointelegraph.
The token showcases how blockchain know-how might be paired with conventional asset courses to offer advantages to holders, but additionally highlights how tokenized equity products don’t essentially grant the identical rights as possession of the underlying asset.
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Robinhood tokenizes non-public fairness, however customers don’t have similar rights as stockholders
In June, asset brokerage platform Robinhood introduced the launch of tokenized stock trading for purchasers within the European Union.
Robinhood supplied prospects $5 in SpaceX and OpenAI “non-public fairness” tokens as a part of the rollout.
Nonetheless, OpenAI disavowed the tokens nearly instantly, warning potential holders that they did not represent a private equity stake within the firm nor entitle holders to any shareholder rights.
“We didn’t companion with Robinhood, we weren’t concerned on this, and don’t endorse it. Any switch of OpenAI fairness requires our approval. We didn’t approve any switch,” OpenAI said in response to the Robinhood announcement.
Attorneys and crypto trade executives instructed Cointelegraph that many tokenized fairness merchandise are supposed to observe the worth of the underlying asset, however do not actually represent equity in an organization or the contractual rights related to conventional fairness possession.
“There is no such thing as a direct declare on firm belongings, no voting rights, and no entry to inner monetary data,” in accordance with John Murillo, chief enterprise officer of fintech firm B2BROKER.
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