What will happen to bStock if the company is acquired or delisted?
I thought for a long time that corporate actions in bStocks are only dividends and splits. But in the list of categories used by Binance, the range is much wider: mergers, tender offers, buyout rights, warrants, spin-offs, delisting, ETF distributions, and liquidations. And next to the ways these events are handled, it mentions not only Multiplier adjustments or reinvestment, but also “sale of property” and “cash-in-lieu.”
I asked myself: what exactly happens if the real company is bought and removed from the exchange?
In the traditional market, in such cases shareholders receive cash compensation instead of shares. Logically, something similar happens with bStock: a regulated custodian receives compensation for the underlying shares, and the token holder receives an equivalent in a stablecoin instead of the bStock itself.
This means the token doesn’t remain a “dead” asset in your wallet forever if the company disappears from the market. But it also means the moment you exit the position isn’t chosen by you—your corporate event decides it, not your order.
Do you factor in the risk of a company takeover when choosing bStock for a long-term portfolio?
@BinanceCIS #bstockscis
I thought for a long time that corporate actions in bStocks are only dividends and splits. But in the list of categories used by Binance, the range is much wider: mergers, tender offers, buyout rights, warrants, spin-offs, delisting, ETF distributions, and liquidations. And next to the ways these events are handled, it mentions not only Multiplier adjustments or reinvestment, but also “sale of property” and “cash-in-lieu.”
I asked myself: what exactly happens if the real company is bought and removed from the exchange?
In the traditional market, in such cases shareholders receive cash compensation instead of shares. Logically, something similar happens with bStock: a regulated custodian receives compensation for the underlying shares, and the token holder receives an equivalent in a stablecoin instead of the bStock itself.
This means the token doesn’t remain a “dead” asset in your wallet forever if the company disappears from the market. But it also means the moment you exit the position isn’t chosen by you—your corporate event decides it, not your order.
Do you factor in the risk of a company takeover when choosing bStock for a long-term portfolio?
@BinanceCIS #bstockscis
