Tokens.com (OTCQB:SMURF, NEO:COIN.AQN) Corp, a Toronto-based company that invests in web3 assets and building businesses linked to crypto staking, the metaverse and play-to-earn gaming, said it has sold some of its tokens for gross proceeds of C$1.4 million in a bid to hold more cash on its balance sheet while eliminating some of the price volatility associated with current crypto prices.
The company said, in consideration of crypto price volatility and the ongoing turmoil caused by the bankruptcy of FTX and BlockFi, it has sold some of the staking rewards it has generated this year and divested of its smaller non-core holdings of Oasis Rose, ANKR, Mana, and SHIB.
Tokens.com said it would continue to focus on holding Layer 1 digital assets, primarily Ethereum and Polkadot, following this rebalancing.
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It added that it remains well capitalized with a strong cash balance and inventory of blue chip tokens that enables the company to withstand a prolonged crypto winter.
Tokens.com CEO Andrew Kiguel said the events at FTX and BlockFi have negatively impacted the crypto space, but noted that these issues were caused by human negligence, and were not because of crypto itself.
"Despite this, we have made the decision to de-risk our balance sheet by selling some digital assets to boost our cash reserves,” he said.
“While this eliminates some potential upside from holding those tokens, we believe the company is better served by preparing for what could be a prolonged downward cycle for crypto and technology stocks."
The company also noted that while Tokens.com holds digital assets for staking, its metaverse and gaming businesses are not linked to price fluctuations within the cryptocurrency sector.
It said its key subsidiaries, Metaverse Group and Hulk Labs, continue to show increased revenue and growth within their respective web3 categories.
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