Types of Crypto Stocks

There are two main types:

1. Tokenized Stocks

These are digital tokens backed 1:1 by actual shares in a listed company.

They are issued by brokerage firms or platforms like FTX (before its collapse), Bittrex, or Synthetix.

For example: You can buy a TSLA token representing a Tesla share.

Advantages:

Trading 24/7 without interruption.

The ability to buy fractional shares.

Disadvantages:

They usually do not grant you voting rights.

They rely on an intermediary to hold the actual shares.

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2. Crypto-native Stocks

These are not representations of traditional stocks, but rather represent ownership or participation in projects that operate entirely on the blockchain.

For example: Buying a UNI token grants you voting rights in Uniswap.

They are sometimes referred to as Governance Tokens.

Examples:

BNB for Binance.

CAKE for PancakeSwap.

COMP for Compound.