AMC Chief Executive Officer Adam Aron Public Criticism Robinhood Provides AMC Tokenized trading of stocks, stating that such products are akin to "forged" securities, and raises questions about their issuance structure and compliance issues. This debate has once again brought tokenized stocks to the forefront of regulatory and market discussions.
The focus is on Jersey Island itself.
On Friday, Aron posted on social media in response to Robinhood, the CEO of Vlad Tenev. Aron stated that it is "shocking and shameful" for a US-based company like Robinhood to issue relevant tokens through a Jersey-based entity and promote products linked to AMC to the market.
According to the official website documents of Robinhood, the issuers of these stock tokens are registered in Jersey. Aron believes that this arrangement constitutes a sort of "fictional synthetic equity market" and may weaken the ability of listed companies to raise funds through formal capital markets.
AMC demands the cessation of trading
Aron indicates that he has requested Robinhood to voluntarily cease trading in AMC stock tokens. If Robinhood takes no action, AMC has already asked external securities lawyers to study whether legal means can be used to compel them to stop.
He also stated that his concerns regarding this product "almost involve a matter of survival." This indicates that the management of AMC believes that tokenized stocks are not just a matter of product innovation; they may also affect the company's rights and interests as well as its pricing mechanism in the capital market.
Robinhood continues to defend the product
Robinhood A spokesperson responded that the company firmly supports stock token products, believing that such products can provide international users with exposure to U.S. stocks, while also promoting the modernization of the financial system and expanding holding opportunities on a global scale.
This is not the first time that Robinhood has encountered opposition from relevant companies regarding its stock tokenization products. Last year, Robinhood stated that it would allow users to trade tokens linked to OpenAI. However, OpenAI quickly retracted this statement, claiming that it had not collaborated with Robinhood and was not involved in any related arrangements.
Additional information:The controversy surrounding tokenized stocks currently focuses on two main issues: whether investors will regard these tokens as a substitute for real stocks, and whether offshore issuance structures are used to circumvent U.S. securities regulations.
