Longdotsupply pushed back against criticism from community users, saying the stock tokens it issued on Arc are backed 1:1 by real shares held at Robinhood. The project said the backing can be verified on-chain through a cross-chain vault and that the tokens can be redeemed on a two-way 1:1 basis with Robinhood Chain. It also said it will remain the permanent issuer of these cross-chain stock tokens, so holders will not need to migrate their assets later.
The team attributed the lower stock prices on Arc to what it described as roughly a 2x premium in native USDC on the chain. According to Longdotsupply, that premium should normalize after the Arc mainnet and USDC bridging open on Sept. 16, when it also plans to add liquidity for CRCL/USDC.
Earlier in the day, crypto KOL 0xShawn alleged on X that Longdotsupply had rug-pull authority and could issue fake USDC, and said the bridge behind the Robinhood-Arc stock tokens was built by the platform itself rather than relying on protocols such as Wormhole or LayerZero. Foresight News said Longdotsupply’s custody and 1:1 redemption claims remain the project’s unilateral statement and should be independently verified.
Longdotsupply responded to questions from community users, saying the stock tokens it issued on Arc are backed 1:1 by real shares held at Robinhood. The project said that backing can be checked on-chain through a cross-chain vault, and that the tokens can be exchanged on a two-way 1:1 basis with Robinhood Chain.
It also said Longdotsupply will remain the permanent issuer of these cross-chain stock tokens, meaning holders will not need to migrate their tokens in the future.
On the price gap on Arc, the team said the lower stock prices were caused by roughly a 2x premium in native USDC on the chain. Longdotsupply added that the premium should normalize after the Arc mainnet and USDC bridging open on Sept. 16, and said it plans to add liquidity to the CRCL/USDC pair at that time.
0xShawn raised concerns earlier
Earlier today, crypto KOL 0xShawn wrote on X that 「Longdotsupply is a platform with rug authority at any time and the ability to print fake U」.
He also said the platform built its own cross-chain bridge for stock tokens between Robinhood and Arc, that the stock tokens on Arc were issued by the platform rather than by an official issuer, and that the underlying bridge protocol was not based on more established protocols such as Wormhole or L0.
Foresight News warning
Foresight News said Longdotsupply’s claims on custody and 1:1 redemption are currently only the project’s unilateral statement. It added that contract permissions, custody arrangements, and redemption paths still require independent verification, and warned users to pay attention to potential risks.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
