What is NEX for the law? Corporate shares? Startup shares? Cryptocurrencies? Or what else?
Ok, securities, I know. But I’ve heard some weird things about NEX, like: NEX aren’t shares, NEX just give you the right to dividends. I am a little confused.
Here is my best explanation as to what NEX is.
First of all NEX is not shares of the company Nash, NEX is a European registered security. This means that the token is legal, and protects an investor from market manipulation, fraud, or insider trading. You do not however own shares of the company by purchasing NEX tokens.
As for NEX, you earn a share of exchange fees (dividends as you say) up to 75% of a share for 2 years of locking/staking your tokens, or 25% if you only lock/stake for 1 month (of course you can lock any amount of months between this).
Here you can see the various different sources of dividend fee revenue that you can make off of staking the NEX token:
Hope this helped, let me know if you have further questions!
Basically, Nex is the shares of profit, not of the company. This is a new type of security enabled by blockchain which we will see more and more of in this industry in the coming years.
That’s not 100% correct though.
NEX is a digital right to get a share of the companies REVENUE (not profit) depending on the duration of your stake.
Absolutely, I stand corrected, thanks.
The security token - often also called equity token - conveys company rights or similar rights to an issuing company. They are viewed as a combination of crypto tokens and classic securities that deposit financial value. According to this, a security token is a digital security that pays a dividend, can increase in value and has rewards. Security tokens can be modeled in many variants and appear in the following form:
Shares in investment funds
Profit participation rights
Accordingly, one can say that ICOs are usually referred to as utility tokens, whereas security tokens represent regulated investments that have a clear focus on investments with increased value. In fact, security tokens are digital assets based on blockchain, which at the same time meet specific restrictions of securities supervision.
As has been written, the nex token is a regulated financial instrument with the dividend function. however, it is not a share of neon exchange AG
So if one day Nash goes public, is there a risk of losing the right to the dividend? Or vice versa, can NEX become a share?
if nash starts an ipo then only to have another round of financing. you cannot switch the acquired right on / off.
No. neon exchange ag has 50,000 shares. the number of shares can be increased. just like the amount of security. but if you personally have 100 and it is doubled you also have 200.
Since you can only stake whole nex, the question has come up before. if the price of a single nex becomes unaffordable