SK Hynix

• A blockchain token designed to track the price of SK hynix Inc. (KRX: 000660).

• It is not a share. Holding the token does not confer ownership of the company, voting rights, or a direct claim against it.

• It offers fractional, round-the-clock price exposure without opening a foreign brokerage account.

• Founded: 1983, as Hyundai Electronics

• Headquarters: Icheon, South Korea

• CEO: Kwak Noh-jung

• Listed on: Korea Exchange (KRX: 000660)

• Sector: Memory semiconductors

• SK hynix manufactures DRAM and NAND flash memory.

• It is a leading supplier of high-bandwidth memory used alongside AI accelerators.

• Memory is a cyclical commodity business with sharp swings in pricing and margin.

• DRAM, including high-bandwidth memory, is the largest product line.

• NAND flash, including its Solidigm subsidiary, makes up the rest.

• HBM sales to AI accelerator makers drive results.

• You get price exposure to the underlying instrument.

• You do not get shareholder voting rights.

• Dividend or distribution treatment depends on the issuer's structure and is often not passed through.

• You take on issuer and custodian risk in addition to the price risk of the underlying.

Pros:

• It leads the HBM market.

• It is a key supplier to NVIDIA.

• It has posted record profits in the memory upcycle.

Cons:

• Memory is cyclical.

• Shares trade in Korean won, which adds currency risk for overseas investors.

• A large share of HBM demand comes from a single customer, NVIDIA.

• Counterparty risk: if the issuer or custodian fails, the backing may not be recoverable.

• Tracking risk: the token price can diverge from the underlying, particularly outside US market hours when the underlying does not trade.

• Liquidity risk: on-chain liquidity is thinner than the underlying market, so spreads can widen sharply.

• Regulatory risk: India does not yet have a settled framework for tokenised equities, and tax treatment remains unclear.

• Price risk specific to the underlying instrument.