Known for harnessing Bitcoin’s security, transparency, and decentralization and upgrading it with DeFi capabilities, DeFiChain brought Decentralized Finance to individuals worldwide. And now, the blockchain is furthering its services with the launch of four new dTokens to its ecosystem.
DeFiChain takes Disney and more.
After the Ticker Voting, the community decided on adding the new tokens, which the users will be able to mint and trade on DeFiChain. The four new tokens are $dDIS – Walt Disney Co, $dMCHI – iShares MSCI China ETF, $dMSTR – MicroStrategy Incorporated, and $dINTC – Intel Corporation.
Owing to geographical restrictions, many people across the globe cannot invest in US-based securities. Thus by issuing these dTokens, DeFiChain tracks the price of the issued asset through which investors can gain exposure to the security of their choice without actually investing in it.
However, it must be noted that buying the dTokens does not provide the user ownership stakes as the traditional shares do in the stock markets. The only purpose they serve is – investment.
This way, DeFiChain is creating an amalgamation of traditional finance with the decentralized capabilities of crypto. Adding to the same, the Lead Engineer at DeFiChain, Prasanna Loganathar, said,
DeFiChain is continuously expanding the dToken universe to give users a serious alternative to the traditional financial broker – all whilst offering the flexibility and benefits of decentralization.”
The ETFs of cryptocurrencies
That is how these dTokens act. In fact, not only for investment, but these tokens can be traded, transferred, and used for liquidity mining on the DeFiChain DEX. Users can simply deposit Bitcoin, USDT, USDC, or other acceptable assets as collateral.
This opens up an entirely new space for investors globally who would preferably buy such tokens that mirror the price of securities like Tesla, Apple, Alibaba, GameStop, Nasdaq 100, Nvidia, Amazon, Microsoft, Netflix, Meta, etc.
But while the opportunity does sound alluring, the risks of DeFi cannot just be ignored. Last month, the crypto world witnessed the biggest hack in its history when Axie Infinity’s Ronin Network lost over $625.5 million.
At the same time, the regulations pertaining to cryptocurrencies and associated assets might also pose a threat to such investments. Just recently, the European Union Parliament concluded the ECON – LIBE voting session.
The votes that came in favour of pushing the bill would place “unhosted” wallets or self-hosted wallets at the risk of extinction as crypto services providers would be forced to reveal their hosts’ identities. This came days after the EU’s ‘proof-of-work ban’ bill was shut down. Thus investors must be alert to any development and its potential effects on their investments.