Amazon and many other top stocks in the traditional market have similar decentralized tokens that give investors price exposure to these real-world stocks.
As for AMZN, one such token is dAMZN which is listed on DeFiChain. With mined dAMZN, an investor can gain investment opportunities that closely mirror 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 need to know, but first — Amazon stock.
Amazon Shares After 20-for-1 Split
Shares of Amazon (AMZN) are currently trading around $118.28, down about 2.4% as the stock market took another drop amid concerns of an economic slowdown.
AMZN stock is down 4.8% over the past five days and more than 31% year-over-year, with the latest losses for the tech stock coming after Monday’s brief rally. Plus, if you’ve followed market events over the past few weeks, 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 each AMZN share. Trading for the split-adjusted stock opened on Monday, and at current prices, is relatively cheap and accessible to small investors.
What this means for DeFi tokens tracking AMZN
It is worth mentioning that the crypto market continues to show a high correlation with the stock market, with the performance of the latter always affecting crypto. The mirroring is also reflected in the DeFi token sector, and therefore, the stock split has an impact on dAMZN.
dAMZN was Also divided into 20 tokensWith this, holders receive 20 tokens for each of their dAMZN tokens. However, this does not mean that the holder’s investment will increase by 20 times. Rather, the value of their holdings will remain the same as before the partition.
What investors will see is a reflection of the current Amazon stock price, and with the split going smoothly, nothing much changes.
Here’ what DeFiChain developer Prasanna Loganthar said after the split.
AMZN Token Split In #DeFiChain As per the 1:20 split, went on the blockchain on Monday (2022-06-06).
– The split on the blockchain is successful and the user’s funds are safe, split as expected.
— prasanna lognathar (@prasannavl) 8 June 2022