Robinhood is one of several platforms issuing such tokens without the consent of the companies they track, and it has faced the backing question before. AMC Entertainment chief executive Adam Aron asked Robinhood yesterday (Saturday) whether the shares backing its AMC stock tokens are still there once some are lent to short sellers.
AMC Entertainment chief executive Adam Aron asked Robinhood yesterday (Saturday) whether the shares backing its AMC stock tokens are still there once some are lent to short sellers.
He put the question on X to Robinhood chief executive Vlad Tenev and chief legal officer Dan Gallagher.
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AMC Entertainment chief executive Adam Aron asked Robinhood yesterday (Saturday) whether the shares backing its AMC stock tokens are still there once some are lent to short sellers. He put the question on X to Robinhood chief executive Vlad Tenev and chief legal officer Dan Gallagher. Hey there @DanGallagherDC, in the past week you and @vladtenev CEO of Robinhood have made public comments defending your use of and "standing behind" your relatively new Stock Token concept.
Aron called the token model "abhorrent" and said it turned investing into a "gamified business-oriented casino." Robinhood describes each stock token as a debt security backed one-for-one by a share held as collateral, with dividend adjustments and no voting rights. The collateral question reaches beyond one cinema chain.
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