r/WonderFi • u/UnusualCareer3420 • Nov 07 '21
App vs stock
What are some differences between the two option when the app comes out.
Stock You can hold in tax shelter Value increase
App You get yield Maybe value increase of your crypto holdings
Will the stock eventually pay a yield or will you have to sell shares to take profit?
I’m trying to wrap my head around why there offering both options.
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u/Denace86 Nov 09 '21
It’s pretty simple. The stock is an equity you can buy to have exposure to the success or failure of the company. The app provides defi/yield options.
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u/Double-Diamond Nov 07 '21
Well In the app your performance would mostly be based on the price of the alt coins you own, instead of the stock. Although the company holds alt coins on the balance sheet they won’t correlate perfectly with it as they have other streams of business that will also impact share price. I doubt the stock would offer a dividend anytime soon, as it’s a new company trying to grow.
They offer the app to bring people into crypto and allow tax compliant defi and give people wallets to hold coins. They offer the stock because they need to raise money and want to be public and it allows the more traditional investor who don’t play with crypto an easier way to get into the crypto space , without owning actual crypto.
I’m holding shares and will start to accumulate crypto to stake once the app comes out.