"Meme coins are highly volatile; stock investors are unlikely to be interested in them. Attempting to engineer a short squeeze by purchasing meme-coin-linked stocks is also impractical—it would be more effective to execute a direct short squeeze with large capital, as adding an extra layer of complexity is unnecessary. While tokenizing stocks offers significant convenience, using on-chain assets such as meme coins to purchase stocks holds little appeal. How much liquidity improvement can it really deliver?" This comment was posted by a reader following the August 31 article titled "PONS Goes Viral: Robinhood’s First Launchpad Conveniently Links MEME Coins with Stocks."
I agree with some of the viewpoints expressed in this comment and had previously harbored doubts about certain phenomena mentioned. While market developments have validated some of these concerns, others remain unclear.
"Meme coins are highly volatile; stock investors are unlikely to be interested in them." This point certainly applies to me.
I currently hold some tokenized stocks, although they were not purchased on Robinhood. I bought them initially out of pure curiosity and then largely ignored them for an extended period.
Even though trading activity on Robinhood is currently vibrant, I find that subconsciously I still perceive these on-chain assets more as "cryptocurrencies" than as "stocks."
Viewing these tokenized stocks does not evoke the same experience as monitoring equities within a traditional brokerage account.
I wonder how many others share this sentiment?
"Attempting to engineer a short squeeze by purchasing meme-coin-linked stocks is also impractical—it would be more effective to execute a direct short squeeze with large capital, as adding an extra layer of complexity is unnecessary." Market evidence has shown that such strategies have succeeded in certain cases, as I have previously discussed in my articles.
This was something I had not previously anticipated. However, I believe that for such cases to become standard practice rather than isolated incidents, the current examples are insufficient and lack sufficient momentum. Therefore, I continue to monitor their progress.
"While tokenizing stocks offers significant convenience, using on-chain assets such as meme coins to purchase stocks holds little appeal. How much liquidity improvement can it really deliver?" Similar to the point above, the key question is whether this practice can develop into a established convention and trend.
If this practice becomes established and liquidity accumulates to a critical threshold, triggering a qualitative shift, it could genuinely emerge as a distinct market segment with reverse spillover effects on the underlying equity market. Otherwise, it will remain a fleeting phenomenon, merely a temporary release of market sentiment. Therefore, I continue to monitor the situation closely.
Based purely on my personal preferences and interests, I favor assets that are native to the blockchain, particularly those originating on-chain.
I view assets from the real world that are bridged onto the blockchain through indirect mechanisms with skepticism, perceiving them as an extension of centralized forces reaching into this space.
I even prefer decentralized stablecoins, let alone these other types of assets.
However, the reality is awkward: at least so far, while pure on-chain assets exist, they have not yet developed a sufficiently robust ecosystem or significant market power. They currently lag behind Real World Assets (RWA) derived from traditional markets, forcing me to settle for focusing on the development of tokenized equities.
2. I have observed that A-shares can already be purchased on the PancakeSwap trading platform. Whether this represents a trend remains to be seen. At present, it is difficult to determine if this is a sustainable trend, but I believe that derivative trading of A-shares conducted in markets outside domestic regulatory oversight is not
a positive development, especially for Chinese participants involved. The policy and legal risks borne by participants are excessively high.
When Initial Coin Offerings (ICOs) were banned in China, reports emerged indicating that some projects were linked to the domestic securities market.
Therefore, I advise ordinary Chinese investors to avoid exposure to overseas instruments related to A-shares whenever possible. If you wish to invest in A-shares, please use licensed domestic brokerage platforms. Avoid any overseas products related to A-shares issued by non-governmental entities.
Such risks should not be taken.