Combination of Synthetic Stocks and Meme Coins Raises Concerns Over Complex Risks

Concerns have been raised that combining synthetic tokenized stocks and meme coins could overlap risks related to underlying assets, derivatives, custodians, and token issuers. It has been reported that such combined transactions have actually formed on the Robinhood chain. Brett Redfearn, president of Securitize, mentioned that this structure could make it difficult for investors to identify the sources of risk. According to official materials from Securitize, synthetic tokenized stocks are described as an exposure structure through foreign wrappers rather than actual stocks, which can lead to additional counterparty and intermediary risks. Bitquery reported that from July 16 to 28, the transaction volume of combined meme coins and tokenized stocks on the Robinhood chain amounted to $347 million, with meme coins accounting for 93.5% and tokenized stocks for 6.5% during this period. The trading targets included Apple, Nvidia, Intel, and GameStop. Securitize began trading its own tokenized stocks on the New York Stock Exchange on July 2, and this structure is linked to the existing shareholder registry. However, both structures can mislead investors regarding their actual rights and risks if the issuance and trading conditions of the tokens are not verified. It has been confirmed in previous reports that synthetic prices may differ from actual stock rights.

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