Latest / The Paul Barron Crypto Show / AMC CEO Attacks Robinhood Tokenized Stocks!🔥Solana Steals The Show

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AMC CEO Attacks Robinhood Tokenized Stocks!🔥Solana Steals The Show · The Paul Barron Crypto Show

• 0:00
  Speaker 1: There's a lot of confusion in the market today, especially
• 0:03
  Speaker 1: around what's going on with Robinhood and Solana. We'll break
• 0:05
  Speaker 1: it down for you. Hopefully it will help kind of
• 0:08
  Speaker 1: get some explanation of where this is heading. Before we
• 0:11
  Speaker 1: do that, I want to thank our sponsor. That's iTrust Capital,
• 0:13
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  Speaker 1: are one of the diversification things that you should be doing.
• 0:45
  Speaker 1: Let's lead off with this tweet right here from Adam Aaron.
• 0:47
  Speaker 1: He is the CEO of AMC, extremely upset with what's
• 0:52
  Speaker 1: going on with Robinhood and the idea that they are
• 0:55
  Speaker 1: not registered under U.S. securities laws when they're going out
• 0:58
  Speaker 1: with tokenized real world assets, stock tokens, specifically to AMC.
• 1:04
  Speaker 1: And he says here, I find this practice to be contemptible, outrageous, disgusting, detestable, inexcusable,
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  Speaker 1: basically vile. How can this possibly be legal? We have
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  Speaker 1: no connection to this at all and do not condone
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  Speaker 1: it in any way. This is the attack that went
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  Speaker 1: forward on, of course, Robin Hood. And if you look
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  Speaker 1: at the AMC stock token, or I shouldn't say stock token,
• 1:27
  Speaker 1: if you look at the AMC stock in general, from
• 1:31
  Speaker 1: what was happening this morning, we had an immediate spike
• 1:34
  Speaker 1: on the shares and then a full retracement. This is
• 1:38
  Speaker 1: on the five-minute chart right now. So you can kind
• 1:40
  Speaker 1: of see the explosion there in the beginning, over 20%,
• 1:43
  Speaker 1: and then back down. So interesting timing here with all
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  Speaker 1: of this coming out, airing their dirty laundry and kind
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  Speaker 1: of getting to this whole point. The other response that
• 1:54
  Speaker 1: came out was Vlad Tenev, this, of course, CEO of Robinhood.
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  Speaker 1: What's the concern? Here was his tweet. Seriously, the concern
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  Speaker 1: is the list of concerns is almost existential. This is
• 2:03
  Speaker 1: where they don't want any holders to be able to
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  Speaker 1: do anything with it. They want full control of those shares,
• 2:08
  Speaker 1: even though you're buying them. And that is, I think,
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  Speaker 1: where this argument has started and, of course, started to escalate.
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  Speaker 1: In addition to my own comments back to Vlad Tenev
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  Speaker 1: about strongly held concerns, he tweets another guy. that is
• 2:23
  Speaker 1: out there trying to explain this. Now, just to be clear,
• 2:26
  Speaker 1: this is an account that is very pro-AMC, almost like
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  Speaker 1: a fanboy of sorts. So the point is that they're
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  Speaker 1: literally tweeting each other trying to combat this issue around
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  Speaker 1: the AMC stock tokens and, of course, trying to stop
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  Speaker 1: a bunch of shorting, all these different versions of the
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  Speaker 1: token itself. Next up, of course, was Carlos Domingo, who
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  Speaker 1: came in from Securitize. He jumps into this. and simply
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  Speaker 1: said the AMC's tokenized stock was trading at 60x the
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  Speaker 1: actual AMC stock price. Now, that is kind of true
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  Speaker 1: and not kind of true. And we'll kind of show you, well,
• 3:02
  Speaker 1: we'll show you an example of what he's referencing there.
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  Speaker 1: Not necessarily the case. So when we looked into the
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  Speaker 1: blockchain data, right here it is, July 29th. This is
• 3:11
  Speaker 1: the reference point they're getting at. So in the response
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  Speaker 1: on this, they had to literally track it down to
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  Speaker 1: a low liquidity trading pair here on ETH. which is
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  Speaker 1: exactly opposite of what the real tokenized stock was trading
• 3:24
  Speaker 1: on under USDG. So that's the point I'm getting at.
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  Speaker 1: This is not necessarily a regular. And of course, it
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  Speaker 1: re-pegged back to it. And of course, Vlad came out
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  Speaker 1: and said, well, hey, we stand behind stock tokens. And
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  Speaker 1: Dan Gallagher, their chief counsel, came in and simply said,
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  Speaker 1: we know a little about this securities law and will
• 3:44
  Speaker 1: not desist. send your lawyers, we'll educate them. So I
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  Speaker 1: want to go over and show you something here. This
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  Speaker 1: is AMC versus Robinhood. And this is kind of the
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  Speaker 1: control versus the hypocrisy that's laying out. And forget about
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  Speaker 1: the tweets. This is what kind of happened. All right.
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  Speaker 1: So remember in 2022, the CEO lost the vote to
• 4:05
  Speaker 1: where he was trying to essentially create more common share.
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  Speaker 1: Shareholder said, no. So what did he do? He made
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  Speaker 1: a new share. They were called ape units. You probably
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  Speaker 1: remember this. There was $ 1 billion authorized. Then underneath that,
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  Speaker 1: then he sold them. He gave away $ 517 million. He
• 4:22
  Speaker 1: raised $ 272 million in capital. And then from a creditor,
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  Speaker 1: $ 110 million, $ 91 million that was swapped for debt. So
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  Speaker 1: apes traded at a very deep discount. This is an
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  Speaker 1: example of a CEO doing this. Then he got sued.
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  Speaker 1: He was sued by the shareholders that he went around.
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  Speaker 1: And then they settled for $ 129 million. So this is
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  Speaker 1: happening right now because they were trying to maintain control.
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  Speaker 1: He could not maintain control. And that's when it got real.
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  Speaker 1: So what happened was is Apes converted. This was a
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  Speaker 1: 1 for 10 split. The workaround became the dilution. So
• 5:00
  Speaker 1: stock went down 34%, 40 million more shares. That's the
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  Speaker 1: issue that, of course, all of this boiled down to.
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  Speaker 1: So just to look at the hypocrisy, he was diluting
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  Speaker 1: shareholders completely without their permission. And this is what he's
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  Speaker 1: claiming Robinhood is doing, and it's not necessarily happening. So
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  Speaker 1: the same idea, opposite result. These were the ape units.
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  Speaker 1: This was AMC that made them. Right now, stock tokens
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  Speaker 1: are made by a third party, as you know. This
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  Speaker 1: was diluted if you were a holder. In this particular case,
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  Speaker 1: they're untouched. Holders voted no. AMC was not asked, don't
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  Speaker 1: need to be. And then, of course, the cost to
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  Speaker 1: you as a shareholder on the ape side was real money.
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  Speaker 1: And over on stock tokens, no cost. So one took
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  Speaker 1: your money, the one took nothing. And then he said this,
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  Speaker 1: contemptible and disgusting and vile. This is about a product
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  Speaker 1: that created zero new AMC shares. No dilution whatsoever. He's
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  Speaker 1: the one who was actually diluting AMC. So one of
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  Speaker 1: the big topics is out there is really who owns
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  Speaker 1: the real shares. And this is kind of a misnomer
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  Speaker 1: that I think a lot of people don't understand. When
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  Speaker 1: you buy something, a share on Schwab, you get an entitlement,
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  Speaker 1: simply saying it's kind of like an IOU. If you
• 6:10
  Speaker 1: buy the token, it's a debt security. So you don't
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  Speaker 1: get it there either, but it's backed one to one
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  Speaker 1: by real shares. So it's essentially the same thing. So
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  Speaker 1: no American really holds legal title. And that's the system
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  Speaker 1: that we've been in and around for a long time.
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  Speaker 1: But it traded at 60x. That was the argument that
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  Speaker 1: they said. This happened over seven minutes in one ETH
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  Speaker 1: paired pool with 139,000 of liquidity, almost non-existent. Those kinds
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  Speaker 1: of liquidity pools are going to create volatility. Every other
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  Speaker 1: live pool today against their stock was almost literally on par.
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  Speaker 1: So it happened fast. It happened in one candle and
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  Speaker 1: it's gone. This is the kind of thing that they're arguing.
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  Speaker 1: And of course, it's an argument they're trying to make
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  Speaker 1: because it's the only one they have. And who's raising
• 6:55
  Speaker 1: the alarm? Well, it's a competitor. Securitize sells a rival
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  Speaker 1: product and a CEO whose stock rose 21% on the rant,
• 7:04
  Speaker 1: and then he printed a billion shares without asking anyone.
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  Speaker 1: So neither one is a ref in this particular case.
• 7:11
  Speaker 1: More democratized or less? That's really the question you're going
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  Speaker 1: to ask. If you have to ask the issuer first,
• 7:16
  Speaker 1: then it's going to be less democratized. If you have
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  Speaker 1: to go through a KYC wall, it's less democratized. If
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  Speaker 1: it's open to anyone, which is what we're talking about
• 7:25
  Speaker 1: on tokenized stocks, that's much more democratized. And I think
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  Speaker 1: that is the argument. So then you have this tweet
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  Speaker 1: right here. Do we really think Vlad knows what he's doing?
• 7:34
  Speaker 1: Just a puppet for Ken Griffin. I think that's the
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  Speaker 1: exact opposite. Citadel has been a thorn in their side.
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  Speaker 1: That's one of the reasons they had moved to Robinhood chain.
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  Speaker 1: It's also been the antithesis of really where Robinhood is
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  Speaker 1: trying to create the next generation of finance. And then
• 7:48
  Speaker 1: you have this. This was bad timing. Today, Robinhood Chain
• 7:52
  Speaker 1: halts block production. And again, this was because of heavy load. Now,
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  Speaker 1: the outage struck the Arbitrum Orbit Layer 2. Not good
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  Speaker 1: timing with the same time that you have AMC. Almost orchestrated,
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  Speaker 1: it looks like here, guys. Very interesting with what's happening.
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  Speaker 1: The transaction fee costs right now, this is the kind
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  Speaker 1: of explosion. Over 100x on Solana and more than double
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  Speaker 1: on Ethereum. That's the average transaction fee surge that we saw.
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  Speaker 1: And this, of course, traces into this right here, which
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  Speaker 1: is Arbitrum chain, remember, gets 10% of the net protocol
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  Speaker 1: revenues back to the Arbitrum ecosystem. And when you look
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  Speaker 1: at Robinhood, they have to be asking 10% of these
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  Speaker 1: kinds of volumes. This is going to become a big problem.
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  Speaker 1: And let's go remember what happened on and with Coinbase. Eventually,
• 8:43
  Speaker 1: that became them developing their own L2. That became Base.
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  Speaker 1: Of course, sidestepping optimism. That might be an interesting scenario
• 8:51
  Speaker 1: that's playing here. Speaking of shots fired, Solana goes on
• 8:55
  Speaker 1: the offensive. They issued backpack securities for AMC. It's now
• 8:59
  Speaker 1: listed on Solana with Sunrise. You can kind of see
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  Speaker 1: it's live now, AMC. It is pegged, so it is
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  Speaker 1: trading exactly like what any other stock token is doing
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  Speaker 1: out there. So you look at this Blockworks research, backpack
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  Speaker 1: fills cost less than in four stock samples that they did. Basically,
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  Speaker 1: you're looking at much cheaper fees here on backpack than
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  Speaker 1: on Robinhood. And this means that Arbitrum is going to
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  Speaker 1: have to deal with this in some way. to be
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  Speaker 1: able to appease what the market demand is going to be.
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  Speaker 1: All right, when you've got this issue going on with equities,
• 9:30
  Speaker 1: you've got to look at this headline right here. This
• 9:32
  Speaker 1: is Uniswap buying and purchasing ponds. This means that we
• 9:36
  Speaker 1: could see meme coins going back on the offensive here
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  Speaker 1: as we see some rotation of capital. So Uniswap and
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  Speaker 1: ponds perfectly aligned right there. I want to go back
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  Speaker 1: to Solana for a second. We showed you the rundown
• 9:49
  Speaker 1: on how Robinhood is dealing with tokenized securities. I want
• 9:51
  Speaker 1: to jump over here on the Solana model. Same idea.
• 9:54
  Speaker 1: And I think this one is done right. And if
• 9:56
  Speaker 1: you look at it, so let's say you want to
• 9:58
  Speaker 1: trade your securities. okay? And this is where the restriction
• 10:03
  Speaker 1: starts to come in on what TradFi is doing here.
• 10:05
  Speaker 1: You look at Securitize, the company has to approve it
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  Speaker 1: for you to be able to do it. Robinhood, Backpack, nobody.
• 10:12
  Speaker 1: Who can buy? This is an allow list, so it's
• 10:14
  Speaker 1: kind of the insider's. That's not necessarily the case. Well,
• 10:17
  Speaker 1: it's not the case with Robinhood Backpack. On a DEX,
• 10:20
  Speaker 1: no way, because that's, of course, losing control. Robinhood, yes.
• 10:23
  Speaker 1: Of course, Jupiter and Radium for Backpack. And then you
• 10:26
  Speaker 1: can get a real share, but it's gated. And of course,
• 10:30
  Speaker 1: with Robinhood, it's insiders only through the model that they're using.
• 10:35
  Speaker 1: And with Backpack, you can actually redeem it. You This
• 10:41
  Speaker 1: is the right way to do it. So one needs
• 10:44
  Speaker 1: permission and one leaks value, the other one doesn't. So
• 10:47
  Speaker 1: this is the compromise. This is kind of the honest
• 10:50
  Speaker 1: catch to this. Trading's wide open on Jupiter. This is
• 10:52
  Speaker 1: a backpack. Any wallet, no permission. Redeeming isn't the case.
• 10:57
  Speaker 1: This still needs a verified account. KYC at the door
• 11:00
  Speaker 1: when you come back in. So this is the challenge
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  Speaker 1: I think that we are going to be facing. Robert eventually,
• 11:05
  Speaker 1: I think, is going to have to meet that kind
• 11:08
  Speaker 1: of market pressure. It's an open market gated exit, and
• 11:12
  Speaker 1: it's still the better deal. So when you look at this,
• 11:15
  Speaker 1: it boils down to who wants control. If you look
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  Speaker 1: at Solana and Uniswap, the two that are really essentially
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  Speaker 1: democratizing how this is going to work, no allow list,
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  Speaker 1: no company permission, the AMM on Robinhood chain launched with
• 11:30
  Speaker 1: day one. So they're essentially giving you open rails to win.
• 11:35
  Speaker 1: And I think that's the challenge that we're facing right now.
• 11:37
  Speaker 1: I think we are going to have to see TradFi
• 11:40
  Speaker 1: make a major leap forward or things could start to
• 11:43
  Speaker 1: change with the SEC. So let's not completely be out
• 11:47
  Speaker 1: of the water just yet. I want to finish up
• 11:49
  Speaker 1: with this right here. Jerry Miller says it right here.
• 11:52
  Speaker 1: Over 1% of Circle is held as tokenized stock. That's
• 11:55
  Speaker 1: 280 million more than any other publicly traded company in
• 11:59
  Speaker 1: the world. Well, you're the flippening. So you've got one
• 12:02
  Speaker 1: executive that's embracing it. of the next generation finance era
• 12:06
  Speaker 1: and one executive that wants control that isn't embracing it.
• 12:10
  Speaker 1: Think about that. Last up, I'll just take a look
• 12:13
  Speaker 1: at Hood on the stock price. This is on the 30-minute.
• 12:18
  Speaker 1: Pedaling out right now, and this, of course, has been
• 12:20
  Speaker 1: after several days of uptrends on Robinhood. Great product launches,
• 12:25
  Speaker 1: but I think they are going to have to make
• 12:27
  Speaker 1: a new strategy here going forward when it comes to
• 12:30
  Speaker 1: tokenized stocks. We'll cover this very closely, so stay tuned.
• 12:39
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• 12:42
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• 12:45
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