Memecoin Spurts Sends Nasdaq Penny Stock Soaring

A memecoin called Money Mushroom (JINQIAN) caused a stir in the market when it started trading on Robinhood Chain, sending shares of Farmmi, a Chinese supplier of dried mushrooms and bulk farm commodities listed on the Nasdaq Capital Market, soaring by as much as 321%.

The token traders were buying into what they thought was tokenized Farmmi stock, but in reality, it was created by one wallet that minted the entire supply in a single transaction and kept 38% of it. The price of the token is managed by this wallet using a contract called PoolRepricer.

The FAMI token, which trades against JINQIAN on Robinhood Chain, has a fixed supply of 37,430,000 tokens, close to Farmmi's entire share count. Its two mint events sit inside the deployment transaction, and its price is adjusted by the wallet that created it.

The pairing mechanism has been running on Robinhood Chain since July without moving an underlying stock, but this time it had a significant impact on the market.