AMC CEO Criticizes Robinhood's Tokenized Shares; AMC Rises While HOOD Slips
AMC Entertainment (NYSE:AMC) shares rose by 6% on Friday after its CEO, Adam Aron, publicly criticized Robinhood Markets' tokenized share program. The tokens are not available to U.S. investors but have generated over $3 billion in volume globally across 190 companies. Robinhood's stock fell 3%, partly due to profit-taking following a recent rally. Aron condemned the practice as unethical and questioned its legality, noting that AMC has no involvement or approval of these tokens. He stated they are traded without company consent and aren't registered under U.S. securities laws. This marks one of the first public criticisms from an executive regarding tokenized shares rather than a private concern. Robinhood describes the products as debt instruments offering economic exposure to stock prices but not legal ownership rights in underlying assets. The tokens face restrictions beyond the U.S., including Canada, the UK, and Switzerland.
Topics: AMC Robinhood stock_movement tokenized_shares