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Beware Fake OpenAI Equity (Patreon)

Published:
2025-07-02 23:27:28
Imported:
2026-06
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Content

Warning: The 'OpenAI' equity listed on Robinhood is not affiliated with OpenAI.

Its true identity is unclear.

This highlights the risks of widespread tokenization of everything.... do you research before parting with hard earned cash.

Thanks to Sanjay for the alert.

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Comments

MushroomCoffee

James, now Sei has 2x, is it time to rotate back into Sui? Or roll it into SOL?

Chewie

I thought it was privately owned shares (like those sold on Hiive) offered as equity?

Baki Novi

Robinhood never said the tokens ARE equity, they are derivatives backed by underlying securities held by US licensed institutions under Mifid II

MC102

Exactly what I feared

Foiler

That’s all tokenised stocks. Just OpenAI butt covering. Not a scam, but is adding counterparty risk. The Wild West of crypto always innovates first. Wait till black rock release theirs…

StarkBullish

Simple: You own a token that is linked to the share price and Robinhood claims to hold these shares for you. By having the token you hold something that tracks the share price, but you don’t have equity and stuff like voting rights, that stays with Robinhood. Theoretically a bit new scam can be done with it so look closely at what is going on and don’t put all your eggs in their basket.

seb
>>179174366

You hold something and Robinhood hold voting rights hence more power on the companies that they should. What could go wrong. This shouldnt exist.

GunBlazer

This is why i don't use robinhood they love the gray area too much

Adam Toth

The dumb money guys said that this kind of equity deal is common, they might have a contract with shareholders to buy their shares after IPO as it is illegal/complicated to trade now but such a contract is easy to sign.

Moonramp

SpaceX on Republic is the same fraud, isn't it????

Tux

I rewritten the all with AI for better understanding: This scenario describes a financial practice known as securities lending, which is a common occurrence in traditional finance (TradeFi) but can also be adapted in the context of digital assets and exchanges. Let's break down the process and its implications in detail: **Securities Lending in Traditional Finance:** In the traditional financial world, securities lending is a practice where financial institutions lend securities to other institutions or investors for a fee. This fee is often referred to as a "premium." The lender temporarily transfers ownership of the securities to the borrower, who then pays the lender a fee for the privilege of using those securities. This arrangement can last from a single day to several months, depending on the agreement between the parties. **Application in Digital Asset Exchanges:** In the context of digital asset exchanges, the concept can be adapted to tokenized securities. Here's a detailed explanation of how it might work: 1. **Tokenization:** The exchange tokenizes the underlying securities, converting them into digital tokens that can be easily traded on the exchange. This process involves creating a digital representation of the securities, which can then be used in various financial activities. 2. **Borrowing and Lending:** The exchange doesn't necessarily hold the physical securities but arranges for a holder to temporarily hold them on its behalf. This holder is paid a premium for this service. The exchange guarantees that the securities are held in trust, ensuring that the tokenized version accurately represents the underlying assets. 3. **Premium Payment:** The exchange pays a premium to the holder for temporarily holding the securities. This premium compensates the holder for the risk and opportunity cost of not being able to use the securities during this period. 4. **Risk Management:** There are risks associated with this practice, such as the potential for the holder to default or the exchange failing to fulfill its guarantee. However, if the institution is reputable, these risks are generally mitigated through robust risk management practices and regulatory oversight. 5. **Fragmented Banking:** This practice is an example of "fragmented banking," where financial services and activities are dispersed across multiple institutions and platforms. In this case, the exchange acts as an intermediary, facilitating the lending and borrowing of securities without necessarily holding them directly. **Risks and Considerations:** While securities lending can be a legitimate and profitable activity, there are several risks to consider: - **Counterparty Risk:** The risk that the holder of the securities will default or fail to return them as agreed. - **Market Risk:** Changes in market conditions can affect the value of the securities and the premium paid. - **Operational Risk:** Errors or failures in the tokenization process or the management of the securities can lead to losses. - **Regulatory Risk:** Compliance with regulatory requirements is crucial, and any violations can result in penalties or legal issues. **Conclusion:** Securities lending, whether in traditional finance or adapted for digital assets, is a complex but often legitimate financial activity. It allows exchanges to offer tokenized securities without necessarily holding the underlying assets, providing flexibility and potentially increasing liquidity. However, it requires robust risk management and a reputable institution to ensure its success and minimize potential issues. This practice is just one example of how traditional financial concepts are being adapted and evolved in the digital asset space, reflecting the ongoing transformation of the financial industry.