Tokenizing stocks of DATs compounds investor risk: Crypto execs

**Cryptocurrency executives warn that tokenizing stocks of Digital Asset Treasuries (DATs) significantly amplifies investor risk in an already volatile market.** As crypto treasury companies capitalize on Bitcoin and blockchain investments, the tokenization of company shares creates unprecedented exposure to digital asset fluctuations.

Industry leaders highlight that DATs already face substantial volatility through their cryptocurrency holdings, including Bitcoin, Ethereum, and other digital assets. Adding tokenized equity structures compounds this risk, potentially creating dangerous leverage scenarios for investors. The **DeFi tokenization trend** introduces regulatory uncertainties and liquidity challenges that traditional stock markets don't face.

**Blockchain-based equity tokens** lack the regulatory protections of conventional securities, while their values become doubly exposed to crypto market swings. This creates a cascading risk effect where both the underlying cryptocurrency investments and the tokenized shares fluctuate simultaneously.

Crypto executives emphasize that while **tokenization offers innovative investment opportunities**, the combination of volatile digital assets with tokenized equity structures requires careful risk assessment. Investors should understand that DAT tokenization represents a high-risk, experimental approach that merges traditional equity exposure with cryptocurrency market volatility.