Tokens as Shares: A Reality Check

Some tokens are considered shares of crypto companies, issued through Security Token Offerings (STOs). These tokens can represent ownership, offer dividends, or other benefits. Polymath is a well-known example.

Another example? LKK. Issued by Lykke, these tokens were marketed as shares: 100 LKK equaled one share of the company. Back in 2017, intrigued by this concept, I bought 100 tokens to experience tokenized share ownership.

Here’s how it turned out:

• No dividends.
• No shareholder meetings.
• The only direct communication was a late 2024 email informing me that Lykke had declared bankruptcy.

So, the first time I felt like a shareholder was the moment I was told I owned nothing anymore. Honestly, it feels like I never owned anything at all during those eight years.

The one clear advantage of tokenized shares? Liquidity. Unlike traditional shares, tokens can be easily traded. For instance, Polymath tokens are always available for exchange on rabbit.io.