Ripple CTO Warns Robinhood Users: “You Can Sue Them” Over Tokenized Private Stocks
2025-07-09 10:20:14
Main Idea
Ripple CTO David Schwartz warns Robinhood users about the risks of tokenized private stocks, stating that legal action may be their only recourse if Robinhood fails to deliver on its promises.
Key Points
1. David Schwartz highlights that Robinhood's tokenized stocks do not provide actual equity, ownership, or voting rights in the underlying companies.
2. Schwartz emphasizes that users must understand the legal and financial implications of investing in synthetic, tokenized assets.
3. Robinhood claims these tokens offer retail users exposure to pre-IPO companies, but Schwartz warns they may not fulfill their promises.
4. If Robinhood fails to accurately reflect the underlying stock's behavior, users may have to resort to legal action.
Description
Ripple Chief Technology Officer (CTO) David Schwartz has issued a cautionary statement regarding Robinhood’s new offering of tokenized versions of private company stocks, such as OpenAI and SpaceX. While Robinhood asserts these tokens provide retail users with “exposure” to pre-IPO companies, Schwartz highlights a critical distinction: these digital assets do not confer actual equity, ownership, … Continue reading "Ripple CTO Warns Robinhood Users: “You Can Sue Them” Over Tokenized Private Stock...
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