Just recently Robinhood has launched a subsiduary registered in lithuania (Europe).
Multiple times already they have "paused" trading in the stock " tokens " of $POET.
THEY ALSO DONT OFFER REAL STOCKS BUT STOCK TOKENS IN EUROPE.
They describe it as follows:
"Stock tokens are derivative contracts between you and Robinhood that reflect the price of a share or an exchange-traded fund, without granting rights to the underlying shares. Stock tokens carry significant risks and investors can lose up to the full amount of their invested capital. See Description of Services, Financial Instruments and Risks and the Important Information Document."
This is possible the biggest fleece waiting to happen? They sell "tokens", complex derivates tied to the value of stocks to young investors/traders. Without actually selling them the stocks. The stocks are held by Robinhood in the US.
Meaning they are the owners of the stock.
Also when the tokens fail, for whatever reason, they claim that this risk is for the investor!
WHAT THE ACTUAL F@$!%@
https://i.redd.it/6f0z5yqsgwxg1.jpeg
Posted by No-Delivery-7048
9 Comments
What the fuck is a token. Use a real broker LMAO
You know the risks? Its an option for the people that want it? Why cry about it? Just use another platform if you dont like it…
Just use a real broker like IBKR.
Fees are low and you won’t have problems like this and also own the actual stocks
I mean, is anyone actually surprised? Lool
yeah this is exactly why people igonore tokenized stocks. you don’t actually own the underlying…you just have a price-tracking contract that they control and what is worse is the imbalance. you eat all the downside, but they can pause trading whenever they want, control liquidity, and basically decide when you’re allowed to act… feels more like you’re playing inside their system and hoping it behaves normally
How is this token different than a CFD?
I grew up as a young boy in Bulgaria…
I was there when they turned off the buy button on gamecock.
Get a real broker.
there’s a sucker born every minute