Robinhood Token Proposal Fuels Wall Street vs Web3 Clash After Record Earnings
A viral HOOD token pitch ignited debate between Wall Street and Web3 advocates as Robinhood’s Q3 2025 earnings hit $1.27 billion in income and $556 million in web revenue.
The proposed fixed-supply token aimed to mix buybacks, person utility, and model loyalty, sparking a dialogue that prolonged past the business.
How the HOOD Token Pitch Spread
Jeff Dorman of Arca Capital Management launched the token idea as Robinhood posted file outcomes and CFO Jason Warnick introduced his retirement.
Dorman’s thought featured a fixed-supply $HOOD token, with 50% allotted to present shareholders and the remaining 50% airdropped to platform customers over time.
New account holders would obtain tokens throughout a six-month promotion. Value would come from 5% of Robinhood’s revenue directed to buybacks, the token’s utility as collateral or for discounted buying and selling, and its social standing as a first-of-its-kind company token.
“A HOOD token would instantly educate each firm the best way to problem a token as a third a part of the corporate’s capital construction, and have each funding banker instantly pitching each firm, sports activities group, college and municipality to do the identical factor,” Dorman shared on X.
Dorman estimated that the proposal might create $10 billion to $30 billion in worth for shareholders, suggesting that new customers and long-term loyalty would outweigh the misplaced revenues from reductions.
He referred to as the thought transformative for capital markets, far outpacing present blockchain fashions.
However, critics moved shortly, questioning Robinhood’s means to implement such a token construction whereas upholding fiduciary duties. One cited the danger of shareholder dilution by way of token distribution.
The HOOD token debate highlights fintech’s turning level. While Dorman’s proposal stays hypothetical, it spurred widespread dialogue in regards to the probably rise of tokenized fairness for public firms.
Coinbase’s report specializing in token design for its Base network is one other signal that tokenization is being taken severely as each a funding and engagement technique.
Wall Street Versus Crypto: Jennings Responds
Miles Jennings, General Counsel and Head of Policy at a16z crypto, led the rebuttal. With expertise at ConsenSys and Latham & Watkins, Jennings dismissed the token pitch as a brand new twist on an outdated safety construction—profit-sharing pursuits.
“That’s only a income curiosity, which is a kind of safety that’s been round for a very long time. Using a safety as collateral additionally isn’t new. Token + monetary engineering + buzzwords ≠ innovation,” Jennings stated.
Jennings’ critique illustrated the divide within the tokenization debate. On the one hand, proponents see tokens as revolutionary. On the opposite hand, skeptics see them as monetary engineering with new branding.
Jennings highlighted a16z’s name to separate real innovation from buzzwords.
The trade additionally pointed to regulatory problems. SEC filings and Commissioner Hester Peirce’s statements articulate that tokenized securities should adjust to US disclosure and fiduciary requirements.
Nasdaq’s 2025 proposal for tokenized fairness buying and selling highlights the push to mix blockchain with present markets, however at all times below regulatory oversight.
The debate coincided with Robinhood’s most spectacular quarter but. The firm reported Q3 2025 crypto revenue of $268 million, marking a 300% year-over-year leap.
Net revenues doubled to $1.27 billion, and transaction-based revenues soared 129% to $730 million. Options income totaled $304 million whereas equities income reached $86 million.
Still, Robinhood’s shares declined 5% after hours. The drop adopted a 280% rally earlier within the yr and information of CFO Warnick’s departure.
As of this writing, Robinhood’s HOOD inventory was buying and selling for $139.55, down by over 2% in pre-market buying and selling.
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