According to IOSG researcher Mario Chow, Robinhood's tokenized AMC product reached $18.04 after AMC Entertainment shares closed at $2.54 on September 3. AMC subsequently rose as much as 22% in premarket trading before surrendering most of the advance. The episode demonstrates that an onchain premium can generate demand for the corresponding shares when an authorized participant creates additional stock tokens. However, it does not establish that token trading caused the entire move in AMC, as reported by crypto.news.
IOSG research reconstructed creation and redemption transactions for the AMC-linked token, estimating supply rose from 152,106 tokens to 2.90 million within three days. The researcher counted approximately 3.05 million newly created tokens and 310,000 redeemed tokens during the period, producing a net increase of approximately 2.74 million. IOSG estimated that approximately $7.6 million of real AMC shares was purchased as the token supply increased, representing as much as 7.6% of trading during the busiest premarket interval, as reported by crypto.news.
Dynamic creation and redemption mechanisms limit sustained squeezes in genuinely backed stock tokens. When a token trades above the value of its reference share, an authorized participant can potentially acquire share exposure, create more tokens and sell them into the premium. Additional supply reduces scarcity and creates negative feedback rather than the self-reinforcing demand associated with a short squeeze. Redemption can reverse the process, potentially unwinding corresponding market hedges, as reported by crypto.news.
Robinhood describes its Stock Tokens as tokenized debt securities issued by Robinhood Assets (Jersey) Limited, tracking economic performance of referenced U.S. securities but granting no ownership or voting rights. AMC CEO Adam Aron objected to the product, calling it 'contemptible, outrageous, disgusting' and stating the company had not authorized participation. Robinhood rejected AMC's demand to discontinue the product, arguing it could continue offering the AMC-linked instrument as Robinhood's debt security rather than an AMC-issued share, as reported by crypto.news.
The episode suggests tokenized equity products can experience short-lived squeezes when new creation is unavailable, though such moves do not necessarily transfer proportionally to underlying shares. Activity around these products is growing, with Robinhood Chain's RWA-linked trading volume reaching $390 million, including $217 million from meme coin and stock-token pairs. The risk may be greater for newly launched products with limited supply, as wider adoption increases consequences of unclear ownership disclosures, according to crypto.news.
