Token split in the cryptosphere are similar to stock split
Decentral Games is a metaverse and Play-to-Earn platform. Notably it has become the most recent project that introduced its token split. Such events prove to be an exciting addition in the digital assets ecosystem. The concept of token split shows similarities to corporate stock splits, that attracts the attention of newbies in the market. Additionally, splitting crypto coins is a good way for such protocols to increase their market valuation and enhance its liquidity. Following the factors, the metaverse announced to split its native DG tokens into 1:1000.
Decentral Games announces token split
Decentral Games will split its native cryptocurrency DG into 1:1000. The brain behind the gaming metaverse consulted the community first through a referendum regarding the split. Notably, more than 99.5% of the token holders voted in favour of the split. Although the split will have no impact on the market cap of the project, the DG token worth $500 will then be worth $0.50 only. However, the investors will see an increment in the number of tokens they hold as the value of the portfolio will remain the same.
Crypto splits have become the new paradigm
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Veterans in the financial market must be familiar with the concept of stock split. Such events often are deployed to attract newbies in the market and tap additional liquidity. Unsurprisingly, splits show some potential market volatility, and the price begins to head towards the strict direction. As the tokens value decreases, more investors will be able to acquire the tokens that will ultimately boost the value of the tokens. Although token split is not a standard method yet, there are some intriguing examples available.
Benefits of token split
According to the team behind Decentral Games, there are numerous benefits of performing a token split. The first impact of such measures will be on the price of each DG tokens, which will become more affordable to gain mainstream adoption. Moreover, such measures also work towards future price increment. On the other hand, the split of the DG tokens will offer a better token distribution for the network’s governance system. More the token, the more democratic the community will become. Ultimately, the process will help a lot in the decentralized decision making process.
Overall, the splitting of DG tokens decision has some crucial takeaways from the gaming metaverse community. It is significant to note how the community overwhelmingly voted in favour of this idea. Indeed, the community understands the benefits of making tokens more accessible and distributed.
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.