Tokenization Tussle: AMC vs. Robinhood Over Blockchain Control
Rivalry between AMC and Robinhood has come to a head over tokenized stocks. The debate revolves around who should have control over blockchain products referencing shares.
AMC CEO Adam Aron expressed his frustration, calling the practice 'contemptible' and claiming it allows people to invest in AMC without any connection or approval from the company.
However, Robinhood's Vlad Tenev defended their tokenized stocks by arguing that issuers should have control over rights and obligations but not everything about the stock. He believes that once shares are publicly traded, investors have property rights.
Tenev proposed a basic test: issuer approval is necessary if the token changes underlying stock rights but not otherwise. AMC's Aron is still unhappy with Robinhood's actions, calling them 'outrageous' and criticizing their lack of transparency.