Robinhood CEO Hits Back at Elon Musk’s ‘Fake Equity’ Claims

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Key Notes

In response to criticism, Robinhood CEO Vlad Tenev explained that while the tokens do not represent direct equity, they offer retail investors exposure to private firms.
Tenev described the initiative as a “seed for something much bigger” amid growing interest from other private companies.
Despite the backlash, Robinhood’s stock (HOOD) jumped 7% on July 2, reaching $97.8.
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Despite the successful launch of tokenized equity for private firms like OpenAI and SpaceX on June 30, Robinhood has been facing some backlash. Company CEO Vlad Tenev has responded to Elon Musk’s “fake” equity comments, stating that the tokenized assets still give retail investors access to private firms, which is otherwise absolutely not possible. Irrespective, HOOD stock continued to rally on Wall Street with 7% gains on July 2.

OpenAI Rejects Equity Claims for Robinhood Tokens

Robinhood faces backlash on its efforts to democratize retail participation in private companies. After the firm introduced tokenized stocks for OpenAI, Sam Altman’s AI company stated that they “do not endorse it”.

Distancing themselves from the circulation of “OpenAI tokens” on the Robinhood trading platform, the AI firm clarified that these tokens do not represent equity in the company.

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

This recent clarification also comes amid growing concerns over misleading investment products circulating under the OpenAI name. Elon Musk also commented on the launch of the “SpaceX tokens”.

Your “equity” is fake

— Elon Musk (@elonmusk) July 2, 2025

Robinhood CEO Vlad Tenev Clears the Air, HOOD Stock Jumps 7%

Responding to the ongoing criticism, Robinhood CEO Vlad Tenev stated that although the OpenAI tokens or SpaceX tokens aren’t technically equity, “they effectively give retail investors exposure to these private assets”. Besides, Tenev stated that this is just the beginning while hinting at broader ambitions ahead.

At our recent crypto event, we announced a limited Stock Token giveaway on OpenAI and SpaceX to eligible European customers. While it is true that they aren’t technically “equity” (you can see the precise dynamics in our Terms for those interested), the tokens effectively give…

— Vlad Tenev (@vladtenev) July 2, 2025

Additionally, Wall Street has been cheering this development, with Robinhood stock (NASDAQ: HOOD) rallying by another 7% on July 2, moving to $97.8. In 2025 so far, HOOD stock has already surged by 150%, and a staggering 328% over the last 12 months.

Currently, Robinhood’s tokenized stocks are trading on the Arbitrum blockchain network. However, it will soon introduce a Layer 2 blockchain to enable 24/7 trading, self-custody, and commission-free transactions for tokenized stocks.

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