AMC CEO Called Stock Tokens Fake Equity. Now Robinhood Is Responding
Robinhood has promised to give its stock token holders the one thing that could wreck its own legal defense; votes, and the real shares sitting behind them.
The offer landed on Monday, and comes only 10 days after the boss of cinema chain AMC called the same tokens a quasi-fake market and told Robinhood to stop selling them.
What Robinhood Users Are Actually Buying
A Robinhood stock token is not a share, it is an IOU. The tokens come from Robinhood Assets (Jersey) Limited, a company registered on a small island in the English Channel. It is not regulated, rather, each token tracks a share price and pays the cash value of dividends.
"This quasi-fake market you are creating on the island of Jersey sows distrust amongst the public about financial markets in general. There already is distrust in financial institutions, you are potentially making it far worse," AMC CEO Adam Aron stated recently.
Follow us on X to get the latest news as it happens.
What it does not do is make you an owner. You cannot vote and your name never reaches the company's share register and you cannot hand the token back and walk away with the real stock. Robinhood now says two of those things will change.
โฆ Continue reading the full article at the original source below.
