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OpenAI has rebuked Robinhood’s new crypto token launch, warning buyers the belongings should not official shares within the firm.
“These ‘OpenAI tokens’ are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it,” the corporate posted on X. OpenAI added that “any transfer of OpenAI equity requires our approval — we did not approve any transfer.” Robinhood had promoted the tokens to European customers as a solution to achieve oblique publicity to non-public corporations like OpenAI and SpaceX.
Robinhood’s inventory soars after crypto token reveal
Robinhood’s inventory surged previous the $100 threshold to report highs after the corporate launched tokenized shares of personal corporations throughout a product occasion in Cannes. This occasion headlined a broader push into crypto merchandise, together with staking and blockchain infrastructure.
Eligible European customers had been supplied 5 euros value of OpenAI and SpaceX tokens for signing up earlier than July 7, whereas US customers had been excluded as a result of regulatory restrictions.
However, the rally rapidly reversed course. Robinhood’s inventory declined after OpenAI publicly denied any involvement and cautioned buyers that the tokens didn’t signify legit fairness stakes.
Musk mocks OpenAI’s fairness declare
While OpenAI distanced itself from the token launch, SpaceX CEO Elon Musk took intention on the firm as an alternative. In response to the AI firm’s put up on X denying any fairness switch, Musk replied, “Your ‘equity’ is fake.” The remark didn’t tackle Robinhood immediately, selecting as an alternative to jab at OpenAI’s for-profit pivot.
The CEO made no point out of Robinhood’s sale of SpaceX tokens, and SpaceX has issued no public assertion. Unlike OpenAI’s express denial, there was no affirmation, or objection, concerning the legitimacy of tokenizing SpaceX fairness, leaving its standing unsure.
Tokens are publicity, not fairness, says CEO
Robinhood CEO Vlad Tenev addressed the controversy on X, defending the corporate’s giveaway. He acknowledged the belongings aren’t technically fairness however argued they supply efficient publicity to corporations like OpenAI and SpaceX.
Tenev described the initiative as “a seed for something much bigger,” including that because the launch, “many private companies” had expressed curiosity in becoming a member of Robinhood’s push to tokenize personal markets.
Not everybody sees this tactic as innocent, although. Some buyers warning that providing artificial publicity with out firm approval may elevate critical authorized and contractual dangers. Dragonfly General Partner Rob Hadick warned that such strikes may immediate personal corporations to cancel fairness gross sales completely if shareholders’ agreements are violated.
Without buy-in from issuers, publicity may flip into publicity threat.
Editor’s word: This content material was initially printed on our sister website TechRepublic on July 3, 2025.
