Smart Contracts Outperform Broad Digital Assets Amidst Overall Crypto Weakness
As digital assets prices struggle through a typically volatile September, 4 of the top 5 best-performing digital assets have been smart contract protocols.
Read BlogISIN: DE000A3GSUD3
Risk: You may lose money up to the total loss of your investment due to the Main Risk Factors described below and additional risks described in the sales prospectus.
Solana is the fastest blockchain platform, allowing blockchain developers to scale global smart contract transactions at very low cost.
Solana’s blazing speeds make it ideal for blockchain applications. It’s by far the fastest smart contract platform and has one of the lowest transaction costs.
The protocol is based on ‘proof-of-history’ crypto technology that is the key to its greater speed.
The platform is backed by a proven Silicon Valley entrepreneur, who discovered that the rival Ethereum was just not fast enough for blockchain apps. Today, Solana is one of the fastest-growing crypto platforms, with use-cases that range from finance to NFTs to gaming.
The Solana platform has been developed to meet a basic need identified by the market: a lightning-speed ecosystem that can scale to a billion simultaneous users.
It’s quickly attracting users, as the blockchain ecosystem rapidly evolves.
This ETN tracks the value of SOL and uses the MVIS CryptoCompare Solana VWAP Close Index for the calculation of its NAV.
The VanEck Solana ETN is based on the MVIS CryptoCompare Ethereum VWAP Close Index and closely tracks the solana price.
ISIN: DE000A3GSUD3
Lower risk: Typically lower reward
Higher risk: Typically higher reward
Despite all the hype, digital assets are a highly risky investment. Below are key risk factors that need to be considered before making an investment.
The trading prices of many digital assets have experienced extreme volatility in recent periods and may well continue to do so. Digital assets were only introduced within the past decade and regulatory clarity remains elusive in many jurisdictions. Digital assets' value depends on such regulation remaining favorable, as well with the technological capabilities, the development of protocol networks, competition from other digital asset networks and from forks. Volatility can be strongly amplified by transactions from speculative investors, hedge funds and other large investors. You may experience losses if you need to sell your Shares at a time when the price of the underlying digital asset is lower than it was when you made your prior investment. Even if you are able to hold Shares for the long-term, your Shares may never generate a profit.
If the currency of the Product differs from the currency you invest in, your final return depends on the exchange rate between your investment currency and the currency of the Product.
Trading venues and systems used by market participants to trade the Digital Asset may be subject to hacking and could result in loss of the Product.
As a later entrant, Solana may struggle if emerging regulation entrenches market position of current leaders or otherwise hinders new development.
If the network model doesn’t attract developers to build dApps and other blockchain projects, then SOL token price will likely struggle.
Solana is still transitioning to a user-governed protocol and there is still uncertainty regarding the model.
For more information on risks, please see the “Risk Factors” section of the relevant ETN’s prospectus, available on www.vaneck.com.
As digital assets prices struggle through a typically volatile September, 4 of the top 5 best-performing digital assets have been smart contract protocols.
Read Blog