The debate over Robinhood's AMC token has intensified with AMC CEO Adam Aron calling the tokenized shares a 'quasi-fake market' and threatening legal action. According to reports from CoinDesk, Robinhood's Vlad Tenev responded by stating that a public company cannot approve every product built on its stock. The controversy centers on which tokenization model is legitimate, with the SEC drawing clear lines on acceptable market structures.
Across seven sessions between August 31 and September 9, Robinhood's AMC token closed within 0.87% of AMC's NYSE close price at the median, and 2.71% at the widest as measured in the Uniswap pool carrying around 95% of its trading volume. However, as reported by CoinDesk, a different pattern emerged when the underlying market was closed. Leading up to midnight on Thursday, September 3, the token spiked from $2.55 to as high as $23.16, which is nine times the $2.54 AMC closed on NYSE seven hours earlier, before recovering to $3.26 within the same hour with $10.5 million volume during the hour.
According to CoinDesk's analysis, wrapped tokens such as Robinhood's AMC are structured as claims against offshore issuers that collateralize tokens with underlying shares. The report notes that the Jersey issuer names only one authorized participant able to create and redeem tokens, and 47 mints occurred on Friday, September 4, between noon and 7 p.m. ET, comfortably inside cash session hours. The analysis reveals that no actual shares changed hands during the spike, with sellers being holders taking profit rather than arbitrageurs, as no infrastructure exists to borrow tokens outside regular market hours.
As reported by CoinDesk, the SEC's exemption caps onchain trading at 0.25% of large-cap stock's average daily volume and 2.5% for all other listed stocks. However, wrapped tokens issued offshore to non-U.S. holders, including Robinhood's, fall outside SEC jurisdiction and operate independently. The report emphasizes that price discovery does not stop when NYSE or Nasdaq close, with many brokers remaining operational, but the ability to source underlying shares in size is severely diminished during off-hours when primary exchanges are closed.
According to CoinDesk's analysis, wrapped tokens have demonstrable utility, especially in emerging markets where US equity access is restricted or expensive, with Robinhood's Stock Tokens covering more than 190 companies across 120 countries. The report concludes that no single firm can build the entire infrastructure needed, requiring coordination between exchanges, brokers, fund managers, market makers, transfer agents and clearinghouses. Industry groups like the IST Coalition are working to achieve this coordination to build a continuous market beyond issuance.
