Robinhood is facing an investigation from European central banks regarding its stock tokens after OpenAI denied any association with the new product.
Request from Lithuania's Central Bank
Lithuania's central bank has instructed Robinhood to provide detailed information on how their stock tokens, claiming to represent equities in OpenAI and SpaceX, actually function. Giedrius Šniukas, a bank spokesperson, indicated that the regulator is awaiting clear information before making a decision on the legality of the tokens.
OpenAI Denies Connection to Robinhood's Product
OpenAI has made it clear that Robinhood launched the tokens without their consent. The organization emphasized that these tokens do not represent OpenAI equity and warned consumers against assuming they are buying real ownership. "We are not partners with Robinhood, and we did not authorize this product," OpenAI stated through social media.
Support for Robinhood from Compass Point
Despite facing scrutiny and questions from regulators, research firm Compass Point raised its price target on Robinhood from $64 to $96 just three days before the token launch. Analysts noted strong demand driven by younger retail traders and highlighted the potential of innovative blockchain-based tools.
The situation regarding Robinhood's tokens remains uncertain, with the company needing to provide necessary clarifications to regulators. Nevertheless, analysts continue to support Robinhood's long-term outlook amid changing user interests.