OpenAI forcefully rejected Robinhood’s new European offering today. The AI giant stated its tokenised “equity” lacks any authorisation. “These ‘OpenAI tokens’ are not OpenAI equity,” the company declared sharply. “We did not partner with Robinhood, were not involved in this, and do not endorse it.” As a result, investors are facing significant uncertainty. OpenAI emphasised strict equity transfer rules publicly. “Any transfer of OpenAI equity requires our approval,” their statement continued firmly. “We did not approve any transfer.” Therefore, the tokens’ legitimacy remains deeply questionable. Robinhood promoted these heavily just days ago.
OpenAI Issues Denial on X
The company delivered its warning directly via social media. OpenAI posted its rejection clearly on the platform X. It stated Robinhood’s tokens represent zero actual ownership. Moreover, OpenAI stressed it played no role in their creation. “We were not involved in this,” the post reiterated strongly.
Experts immediately recognised the potential fallout. Private companies like OpenAI often control share transfers tightly. They likely won’t honour unauthorised secondary market sales. “There is no requirement for these companies to honour the sale,” warned Rob Hadick, a Dragonfly General Partner. Investors could ultimately hold worthless claims.
Robinhood’s European Tokenized Stock Launch
Robinhood announced this initiative earlier this week. It launched tokenised stock trading for European Union users. The service uses the Arbitrum blockchain for efficiency. Users access over 200 tokenised equities and ETFs. Furthermore, Robinhood included hot private startups like OpenAI and SpaceX. They even offered €5 in free OpenAI/SpaceX tokens as a promotion.
However, the source of this private “equity” is murky. Robinhood CEO Vlad Tenev hinted vaguely at relationships. He mentioned a “wealthy investor” holding such shares. The following speculation suggests tokens track shares held by others. On the other hand, Robinhood claims these tokens offer “indirect exposure”. Yet, they provide no real ownership rights or dividends.
Legal Risk
OpenAI’s rejection shows serious legal risks. Private company equity transfers typically demand board approval. Unauthorised sales often breach shareholder agreements directly. Rob Hadick predicted a likely company response. “I expect… more private companies just cancelling equity sales,” he stated plainly. Violators could face severe consequences.
At the same time, Robinhood’s stock initially soared on the news. It jumped 11-13% to nearly $100 per share. However, OpenAI’s sharp rebuke caused a slight pullback later. After-hours trading saw a dip of around 1.3%. Elon Musk, an OpenAI co-founder, also mocked the situation. He labelled OpenAI’s equity “fake,” referencing past disputes.
Uncertain Future of Tokenized Private Shares
This clash highlights tokenisation’s persistent hurdles. Selling private company shares without consent is fraught. Similar issues arose back in 2018 with Swarm. Companies then also declared those sales unauthorised. Today, Robinhood faces identical accusations directly.
Investors must exercise extreme caution now. OpenAI explicitly warned the public: “Be careful.” These tokens likely offer pure price speculation only. Crucially, they confer zero shareholder status or rights. Regulatory scrutiny also seems inevitable following this dispute. As a result, the dream of easy private equity access faces major setbacks. The path forward for tokenised startups remains highly uncertain today.
Written By Fazal Ul Vahab C H
