What Are the Financial Implications for Token Holders When a Hard Fork Occurs?
A hard fork typically results in token holders receiving an equal amount of the new coin on the new chain, in addition to their original coins on the old chain. The financial implication is that they now hold two different assets.
The value of each asset is determined by market forces and which chain gains the most economic activity and hash rate. Holders often experience a period of high volatility as the market determines the price of the new token.
