On-Chain Short Squeeze Faces Challenges in Actual Stock Market Pressure

An analysis suggests that the on-chain short squeeze is unlikely to lead to pressure in the actual stock market. Robinhood's stock tokens are structured as tokenized debt securities that provide price exposure rather than actual ownership of stocks. Robinhood has stated that this product is a tokenized debt security issued by Robinhood Asset Management Limited. Controversy has grown as Hims & Hers Health's tokens have combined with the BONER meme coin, with BONER holding 53% of the circulating supply of HIMS stock tokens, which is only about 0.014% of the actual total shares of HIMS. The HIMS on-chain token rose to $132.64 at one point over the weekend, while the actual HIMS stock was at $28.84. The AMC token peaked at $166.86, but the actual AMC stock closed at $2.59. The on-chain prices diverged significantly, with HIMS being about 4.6 times the actual stock price and AMC about 64 times. The supply structure is key, and locking existing tokens in a liquidity pool does not compel actual stock purchases. Approximately 4,000 new HIMS tokens entered circulation after traditional financial markets opened, reducing the gap. In the Robinhood model, investors only gain economic exposure that follows the stock price, and rights to traditional stocks do not automatically accompany it. Korean investors need to verify whether these tokens grant stock rights. Galaxy has tokenized GLXY Class A common stock, and these on-chain shares have the same legal and economic rights as existing stocks. While on-chain stock tokens leave open new possibilities for utilization, to interpret them as pressure in the actual stock market, it is essential to confirm whether rights are granted.

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