MEXC Renames USOon Token to OIL(USOON), Exposing Investors to Oil Price Volatility

The Ondo tokenized product, USOon, is listed on MEXC under the ticker OIL(USOON). This product provides economic exposure linked to the United States Oil Fund (USO), which invests in oil futures and related financial instruments. The immediate underlying reference for OIL(USOON) is USO, not physical crude oil or a direct investment in light sweet crude oil.

USO itself uses oil futures to pursue its investment objective. However, this means that OIL(USOON)'s return can differ significantly from spot WTI due to factors such as contango, backwardation, collateral income, expenses, and tracking differences.

Ondo's USOon token is not issued by USCF, NYSE Arca, CME Group, or MEXC. Instead, it is issued by Ondo Global Markets (BVI) Limited, while Ondo Finance provides tokenization services to that issuer.