Why Does SKHYON Track SKHY? ADS Ratio, FX and Price Differences Explained

Summary

SKHYON is designed to track SKHY through underlying security backing, minting, redemption, market makers and arbitrage.

The tracking process is more complex than a token linked to an ordinary U.S. common share because SKHY is itself an ADS representing Korean stock.

The price chain is:

SK hynix business performance

↓

000660 in KRW

↓

SKHY in USD

↓

SKHYON in USDT

Three conversion factors matter:

1. One SKHY represents 0.1 Korean share;
2. KRW/USD affects the ADS reference value;
3. USDT/USD affects the SKHYON trading price.

How the ADS Ratio Works

SK hynix’s SEC prospectus confirms that each SKHY ADS represents one-tenth of one common share.

If a Korean share is worth KRW 2,000,000 and the exchange rate is KRW 1,500 per dollar:

Theoretical ADS value = 2,000,000 × 0.1 ÷ 1,500

= approximately $133.33

This is only an estimate. The live ADS price can be higher or lower.

Why SKHY May Differ From Converted 000660

SKHY may trade differently because:

• Nasdaq and KRX are open at different times;
• Currency values change;
• U.S. investors may assign a different valuation;
• ADS supply may be limited;
• Depositary conversions involve procedures and fees;
• News may be reflected first in one market.

How SKHYON Tracks SKHY

Ondo states that its tokenized securities are backed by corresponding securities and cash and use low-cost minting and redemption to inherit liquidity from traditional markets.

Premium Scenario

If SKHYON trades above its reference value, eligible participants may mint additional tokens and sell them, increasing supply.

Discount Scenario

If SKHYON trades below reference value, eligible participants may buy and redeem tokens, reducing supply.

These processes may narrow dislocations but do not guarantee instant convergence.

How to Calculate a Simplified Premium

Suppose:

• SKHY trades at $150;
• USDT trades at $1;
• The token ratio is one SKHYON per SKHY;
• SKHYON trades at 153 USDT.

The approximate premium is:

(153 − 150) ÷ 150 × 100 = 2%

The calculation may be wrong if:

• The current token ratio differs from one;
• SKHY’s market is closed;
• USDT is not exactly $1;
• A dividend or corporate action is being processed;
• Minting or redemption is unavailable.

Trading-Hour Effects

SKHYON may trade while Nasdaq and KRX are closed.

During those periods, the token can respond to:

• NVIDIA or AI-sector news;
• Memory-price reports;
• Korean economic developments;
• Changes in the won;
• U.S. interest-rate expectations;
• SK hynix product announcements.

A price difference during closed market hours may be an attempted price discovery rather than a permanent tracking failure.

Liquidity and Order-Book Effects

A shallow MEXC order book can cause:

• Wider spreads;
• Larger market-order slippage;
• Short-term premiums;
• Short-term discounts;
• Greater volatility.

The last traded price alone does not show how much liquidity is available.

Dividend and Corporate-Action Effects

Dividends pass through the ADS structure after taxes, conversion and depositary expenses.

Ondo’s total-return structure is designed to reinvest net distributions, potentially changing the shares-per-token ratio. Corporate actions may temporarily halt minting or redemption.

When a Difference Is More Concerning

A price difference deserves closer analysis when it is:

• Large during overlapping market hours;
• Persistent for an extended period;
• Accompanied by suspended redemptions;
• Associated with very low liquidity;
• Unsupported by movement in SKHY, 000660 or FX;
• Related to a platform disruption.

Practical Checks Before Trading

1. Confirm the latest SKHY price.
2. Check whether Nasdaq is open.
3. Review 000660 and KRW/USD.
4. Check the current Ondo token ratio.
5. Review USDT/USD.
6. Examine MEXC order-book depth.
7. Check Ondo’s service status.
8. Use a limit order when liquidity is limited.

FAQ

Why does SKHYON track SKHY instead of 000660?

SKHYON’s corresponding publicly traded security is the Nasdaq-listed ADS.

Can FX change SKHYON even if the Korean stock is unchanged?

Yes. KRW/USD affects the dollar value associated with the ADS.

Can USDT affect SKHYON’s displayed price?

Yes.

Does arbitrage guarantee identical prices?

No. It helps align prices but cannot eliminate every dislocation.

Risk Disclaimer

Tracking mechanisms do not guarantee identical prices, immediate convergence or sufficient liquidity. SKHYON carries business, ADS, FX, issuer, custody, blockchain, MEXC and USDT risks.