Recently launched tokenized stocks have experienced significant price volatility, with Amazon's tracking token, AMZNX, soaring to $891.58, four times its stock price. Robinhood's unauthorized launch of OpenAI tokens has attracted regulatory scrutiny, with Lithuania's central bank demanding an explanation. Experts warn that trading tokenized stocks on anonymous platforms could lead to insider trading and market manipulation.
The introduction of tokenized stocks has not been smooth. Tokens designed to track popular stocks like Amazon and Apple have shown considerable price deviations from their underlying assets. Robinhood Markets faces scrutiny from European regulators after launching a token allowing bets on OpenAI without the company's consent. The Wall Street Journal highlighted concerns about tokenized stocks enabling illegal activities.
Several cryptocurrency exchanges, including Robinhood, Kraken, Gemini, and Bybit, have released blockchain-based versions of U.S. stocks and ETFs for non-U.S. customers. These tokens provide global investors access to popular securities like Tesla and NVIDIA. However, significant price deviations have raised doubts about their reliability.
Backed Finance, the issuer of these tokens, acknowledges the volatility and is working with exchanges to address price discrepancies. Meanwhile, regulatory scrutiny intensifies as Robinhood promotes tokenized stocks linked to unlisted companies like OpenAI and SpaceX, raising concerns about regulatory evasion.
