If you're upset that others made money, for quite literally ANY REASON...
Stfu and re evaluate yourself.
Others making absurd money is a clear indicator of a bull market right now.
Rising tides.
Embrace it.
Root for others.
Watch the energy flow back to you.
Robinhood memecoins <> Stock Tokens ELI5
>> The tokenized stock = base asset
>> The memecoin = a speculative wrapper that routes demand through it
1. How Robinhood tokenized stocks actually work
• Stock Tokens (e.g. $NVDA or $HIMS) are ERC-20s issued by Robinhood Assets
• They give economic exposure to the real NYSE stock but are legally debt securities, not shares
• You do not own HIMS stock, have no voting rights, and cannot redeem for the actual shares yourself
2. How stock tokens are minted
• Only Authorized Participants (KYB-onboarded partner market makers) can mint or burn tokens directly with the issuer
• Regular users can only buy and sell existing tokens on secondary venues: Uniswap AMMs, fomo app
• The market maker buys the real shares in the traditional market (NYSE hours only)
• They then request the issuer to mint the matching number of on-chain tokens (1 token ≈ 1 share)
• The new tokens are sent to the MM’s wallet and sold into on-chain pools (HIMS/USDG, HIMS/BONER, etc.) to keep the token price close to the real stock
3. Float squeeze
• Because minting requires buying the actual shares on the stock market, it can only happen while the stock market is open
• During market close / weekends the on-chain float is frozen (whatever tokens already exist is the entire supply until market opens)
• MMs decide when to mint by watching the on-chain HIMS.RH x USDG pool versus the NYSE price
• If the token trades at a meaningful premium, they mint and sell. If it trades at a discount they can buy tokens and burn them
• Off-hours they cannot do this, so premiums can balloon (this was what happened ytd with HIMS and AMC)
4. How a memecoin paired with the tokenized stock works (BONER <> HIMS)
• When someone buys $BONER, most sizeable buys route USDG → HIMS.RH pool first, then HIMS.RH → BONER pool
• Important: every net buy of BONER = creates a buy of tokenized HIMS
• Those HIMS tokens get locked inside the BONER/HIMS LP as the other side of the pair. The circulating on-chain float of HIMS shrinks
• BONER’s dollar price is (BONER per HIMS token) × (current HIMS.RH dollar price)
• If HIMS.RH is trading at a huge premium, BONER’s “market cap” is inflated by that phantom premium
5. Off-hours / weekend events (what happened with both AMC and HIMS)
• Demand for the memecoin keeps sucking HIMS tokens into the LP
• The remaining HIMS/USDG pool becomes extremely thin.
• Tokenized HIMS price opens far above the Friday NYSE close because nobody can mint new tokens (the memecoins like BONER looked like it is pumping hard in dollar terms)
• Then when the market re-opens, partner MMs buy real HIMS shares, mint fresh tokens, and dump them into the on-chain pools (which obv the premium will collapse)
• BONER holders lose in USD terms even if the BONER/HIMS ratio itself stays strong or keeps rising
• LP providers can theoretically pull liq and sell the HIMS tokens to help close the premium, but the dominant new-supply source is still the authorized MMs
6. What every memecoin<>stock token’s plans are
• Key goal is to squeeze the shorts on the token pairing
• Degens buy memecoin → the pool “sucks” the tokenised stock tokens out of circulation and locks them as LP
• Persistent demand for the memecoin forces MMs to keep minting more tokenised stock tokens during market hours
• Each mint corresponds to Robinhood (or its partners) buying and vaulting a real stock
• Some stocks have large short interest and over time the growing pile of vaulted/on-chain tokens is supposed to tighten the real-world float available to shorts
7. Important to note
• All the on-chain stock supply is tiny compared with the actual stock
• Minting currently has negligible impact on the real stock price or short squeeze dynamics unless the memecoin demand grows insanely large