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Deythere > News > News > Robinhood’s Tokenized Stocks Spark Fury: Why OpenAI and Elon Musk Say It’s a Scam
NewsCrypto

Robinhood’s Tokenized Stocks Spark Fury: Why OpenAI and Elon Musk Say It’s a Scam

Robinhood’s Tokenized Stocks Spark Fury: Why OpenAI and Elon Musk Say It’s a Scam
Maxwell Mutuma
Last updated: July 3, 2025 11:21 am
By
Maxwell Mutuma
Published July 3, 2025
6 Min Read
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OpenAI has publicly distanced itself from Robinhood’s latest crypto promotion in Europe, stating that its equity was tokenized without approval. The trading platform issued $5 worth of OpenAI and SpaceX tokens to EU users as part of its tokenized asset rollout. OpenAI emphasized that any equity transfer requires company approval and warned the public to remain cautious.

Contents
OpenAI Issues Warning Over Unauthorized TokensNew Robinhood Tokens Target Market AccessMusk Renews Criticism Amid Token ControversySummaryFAQsWhat are Robinhood tokens?Did OpenAI approve the tokenization of its equity?Who received these tokens?Are these tokens actual equity?What is a special-purpose vehicle?Glossary of Key TermsReferences:

OpenAI Issues Warning Over Unauthorized Tokens

OpenAI responded to Robinhood’s token giveaway with a firm public statement on Wednesday, clarifying its position. The company confirmed it neither approved nor participated in any tokenized equity transaction involving its shares.

“We are not involved in this and do not endorse it,” OpenAI stated clearly via social media.

These “OpenAI tokens” are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it.  Any transfer of OpenAI equity requires our approval—we did not approve any transfer.

Please be careful.

— OpenAI Newsroom (@OpenAINewsroom) July 2, 2025

OpenAI explained that equity transfers require formal approval and no such permission had been granted to Robinhood or its affiliates. The company’s message aimed to alert the public, especially in the European Union. OpenAI’s concern stems from potential investor confusion around what these tokens actually represent.

Robinhood Tokens
OpenAI Issues Warning Over Unauthorized Tokens

Robinhood has issued Robinhood tokens that give indirect exposure to shares in private companies like OpenAI and SpaceX. However, OpenAI maintains that these do not confer real ownership or voting rights. This distinction was at the heart of the clarification issued on multiple platforms.

New Robinhood Tokens Target Market Access

Robinhood has been actively expanding its crypto offering in the European market, focusing on tokenized real-world assets. On Monday, the company rolled out its layer-2 blockchain network alongside Robinhood tokens representing companies such as OpenAI and SpaceX. These tokens were distributed as part of a promotional giveaway to eligible users in the EU.

Johann Kerbrat, Robinhood Crypto’s senior vice president, spoke at Consensus 2025 in Toronto about the initiative. He said,

“This is about financial inclusion through the democratization of private market access.”

However, the company did not clarify whether it had consulted all firms whose equity was being tokenized. Robinhood claims that its Robinhood tokens enable fractional access to previously restricted asset classes like private equity. These traditionally remain limited to accredited investors under strict EU and US regulations. By using blockchain-based tokenization, the platform says it aims to bridge the gap between retail and institutional investing.

Musk Renews Criticism Amid Token Controversy

Elon Musk, co-founder of both SpaceX and OpenAI, took to social media to criticize the move and OpenAI itself.

“Your ‘equity’ is fake,” he wrote, referencing the Robinhood tokens given to users.

Musk previously left OpenAI’s board in 2018 and has become a vocal critic of its evolving corporate structure.

Your “equity” is fake

— Elon Musk (@elonmusk) July 2, 2025

Musk has also filed lawsuits against OpenAI, accusing it of breaching its original nonprofit mission. His comments add pressure amid the confusion surrounding the legitimacy of Robinhood tokens tied to private firms. While Robinhood used a special purpose vehicle to manage the equity exposure, OpenAI says this arrangement is unauthorized.

Elon Musk
Musk Renews Criticism Amid Token Controversy

Summary

OpenAI has rejected Robinhood’s tokenization of its equity, labeling it unauthorized and misleading for investors. Robinhood gave EU users $5 in Robinhood tokens linked to OpenAI and SpaceX, sparking criticism and confusion. Elon Musk called the tokens “fake”. At the same time, OpenAI warned that no equity transfer had been approved. Robinhood insists its tokens enable broader access via a special vehicle. 

FAQs

What are Robinhood tokens?

Robinhood tokens are digital assets representing indirect exposure to private equity shares, such as those in OpenAI and SpaceX.

Did OpenAI approve the tokenization of its equity?

No. OpenAI clearly stated that it did not approve any transfer or tokenization of its equity by Robinhood.

Who received these tokens?

Robinhood distributed the tokens to eligible users in the European Union as part of a promotional campaign.

Are these tokens actual equity?

No. The tokens do not provide ownership rights or shareholder privileges and do not represent actual equity in the companies.

What is a special-purpose vehicle?

A special purpose vehicle is a legal entity created to isolate financial risk and manage specific investments, including tokenized assets.

Glossary of Key Terms

Robinhood Tokens: Digital representations of indirect exposure to private market shares offered through the Robinhood platform.

Tokenization: The process of converting ownership of real-world assets into digital tokens on a blockchain.

Layer-2 Blockchain: A secondary framework built on top of an existing blockchain to increase scalability and transaction speed.

Private Equity: Shares in private companies not listed on public stock exchanges, usually restricted to accredited investors.

Special Purpose Vehicle (SPV): A legal entity created to fulfill specific investment objectives, often used to manage complex financial assets.

References:

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ByMaxwell Mutuma
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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
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