AMC CEO once again lashes out at Robinhood, questioning stock token shareholder rights and 1:1 backing mechanism

Odaily News: AMC CEO Adam Aron has once again lashed out at Robinhood's stock token business, raising multiple questions directed at Robinhood CEO Vlad Tenev and Chief Legal Officer Dan Gallagher. Aron stated that stock tokens go against the fundamental concept of stock ownership, and questioned why Robinhood continues to heavily promote stock tokens on its U.S. website when it cannot offer such products to U.S. users.

Aron also questioned whether stock tokens could lead buyers to mistakenly believe they can obtain the same rights as actual shareholders, as well as the 1:1 stock backing mechanism: if some of the underlying real shares used to back stock tokens are simultaneously lent out to short sellers, can the related tokens still be considered truly 1:1 backed. Aron also criticized Robinhood for conducting the related business through a Jersey entity, and said that while stock tokens may represent innovation in Robinhood's view, in his view they "only bring shame to Robinhood."