Amazon, and many other top stocks in the traditional market, have equivalent decentralized tokens that give investors price exposure to these real-world stocks.
For AMZN, one such token is dAMZN that’s listed on DeFiChain. With a minted dAMZN, an investor can gain investment opportunities closely mirroring the Amazon stock, only that this DeFi token does not offer holder ownership in the company.
So, how does Amazon’s stock split affect the available dAMZN tokens? Should you be worried as an investor? Here’s what you might want to know, but first – the Amazon stock.
Amazon shares after 20-for-1 split
Shares of Amazon (AMZN) currently trade around $118.28, about 2.4% down as the stock market hits another downside amid concerns over economic slowdown.
The AMZN stock is down 4.8% over the past five days and more than 31% year-to-date, with the latest losses for the tech stock coming after Monday’s brief rally. That aside, if you have followed market events over the past few weeks, then you know that Amazon announced a 20-for-1 stock split in early March.
The split took place on 3 June 2022, with each shareholder receiving 20 shares for every AMZN share they held. Trading for the split-adjusted stock opened on Monday, and at current prices, relatively cheap and accessible to small investors.
What it means for DeFi tokens tracking AMZN
It’s notable that the crypto market continues to show a high correlation with the stock market, with the latter’s performance invariably influencing crypto. The mirroring also reflects in the DeFi tokens sector, and as such, the stock split does have an impact on dAMZN.
dAMZN was also split into 20 tokens, with holders receiving 20 tokens for every one of their dAMZN tokens. However, it does not mean that the holder’s investments will increase 20 times. Rather, the value of their holdings will remain the same as before the split.
What investors will see is a reflection of the current Amazon stock price, and with the split concluded smoothly, nothing much changes.
Here’ what a DeFiChain developer Prasanna Loganathar said after the split.
AMZN Token Split in #DeFiChain went through on the blockchain on Monday (2022-06-06), in accordance to the 1:20 split.
– Split on the blockchain has been been successful and the users funds are safe, split as expected.
(1/N)
— Prasanna Loganathar (@prasannavl) June 8, 2022
The post Amazon stock split: What it means for DeFiChain’s dAMZN token appeared first on CoinJournal.