Robinhood confronted by OpenAI: Tokens are not shares, be careful of being ripped off!

Robinhood announced the opening of stock tokens for over 200 unlisted companies to EU users, including OpenAI and SpaceX, and was immediately confronted by OpenAI.

OpenAI issued a statement:

We have not authorized, participated in, or recognized Robinhood's operation; any transfer of shares must be approved by us, this is entirely fabricated by you.

Robinhood explained: We are only issuing on-chain contracts that track valuations, not actual shares.

This means that what you are buying is not shares of OpenAI, but rather a betting contract on what you think its value is, with no shareholder rights whatsoever.

Robinhood's approach is a typical way to skirt the edges and grab attention.

Retail investors may easily misunderstand and think they can buy into OpenAI or SpaceX early, but in reality, it's just a bet on the market.

The method is not illegal, but it can easily lead to losses.

Don't be blinded by the term tokenized stocks; at its core, it's just financial derivatives speculation, and you haven't obtained even a tiny bit of shares. Recognize the essence, and don't make reckless moves.

#Robinhood #OpenAI #EquityTokens #InvestmentTrap