Nasdaq Penny Stock Farmmi Surges After Unofficial Token Launches on Robinhood Chain

Nasdaq penny stock sees massive price jump

Shares of Farmmi (FAMI), a Chinese supplier of dried mushrooms listed on the Nasdaq, rose as much as 321% on Wednesday. The price surge occurred after a memecoin, a type of cryptocurrency often based on internet themes, began trading against an unofficial tokenized version of the stock on the Robinhood Chain.

The memecoin, named "Money Mushroom" or JINQIAN, takes its name from a mushroom variety mentioned in Farmmi's official company reports. While the stock price reached a high of $0.50, the trading activity was largely driven by speculative interest on a blockchain, which is a digital ledger used to record transactions.

Trading volume hits 154 times daily average

• Farmmi's stock volume reached over 806 million shares, compared to its daily average of about 5.2 million.
• The JINQIAN memecoin price increased 85 times from its starting point before falling 92% from its peak.
• The unofficial FAMI token reached a high of $1.83, significantly higher than the actual stock price.
• Over 92,000 transactions were recorded for the JINQIAN memecoin within five hours of its launch.

How official Robinhood stock tokens actually work

According to developer documentation, official Robinhood stock tokens are debt securities issued by a specific entity called Robinhood Assets (Jersey) Limited. These official tokens have a "mint-and-redeem" process that keeps their price close to the real stock price. They also include the issuer's name, such as "NVIDIA • Robinhood Token."

Official tokens are created and destroyed frequently to match market demand. For example, the official HIMS token has seen over 2,000 minting events and 30 burns, which are actions used to create or remove tokens from circulation.

Analysis of the unofficial Farmmi token

The FAMI token used in this week's trading does not follow official rules. It was created by a single crypto wallet, a tool used to store digital assets. This wallet minted the entire supply of 37.4 million tokens in one transaction and kept 38% for itself. There is no process to redeem these tokens for real stock.

Records show the creator of the token has been using a software contract called "PoolRepricer" to manage the price. Unlike official tokens, this one is named simply "Farmmi, Inc." without the official Robinhood suffix. The total supply of the token almost exactly matches the number of actual shares Farmmi has reported to regulators.

What we know about the token launch

It is confirmed that Robinhood brokers Farmmi shares to customers but has not issued an official Farmmi stock token. The FAMI token currently trading on the Robinhood Chain was launched by an anonymous developer and is not connected to the company. Farmmi has not released any statement regarding the token or the recent trading activity.

Nasdaq compliance deadline for Farmmi

Farmmi is currently facing a deficiency notice from Nasdaq because its stock price has been trading below $1.00 for more than 30 consecutive business days. To remain listed on the exchange, the company's stock must close at $1.00 or higher for at least ten business days in a row before February 8, 2027. While the unofficial token briefly traded above $1.00, the actual Nasdaq stock only reached $0.50 during the recent surge.

Sources

• The Defiant