Key Takeaways:
A Meme Coin shed 55 percent in 24 hours on Robinhood Chain, extending a collapse that erased 79 percent from its intraday peak after a debut week that drew public criticism from AMC Entertainment's chief executive.
The tokenized AMC product is "contemptible," Adam Aron, chief executive of AMC Entertainment, said, requesting its termination and threatening legal action against Robinhood. Robinhood executives defended the legality of the product.
The token, which launched September 3 with a total supply of 1 billion, rocketed from a roughly $3 million market cap to nearly $150 million within hours before giving back the majority of those gains. By September 5, the price sat around $0.038, down from a peak range of $0.13 to $0.1585. Trading volume remained elevated between $70 million and $150 million even as the price cratered, with the market cap settling near $40 million.
The episode highlights the speculative risk of memecoin launches on Robinhood Chain, the Ethereum Layer 2 that Robinhood rolled out in July 2026 using Arbitrum Orbit technology. The chain has no official native token, and community-issued assets trading on it are not Robinhood securities. The collapse raises questions about retail investor protection as the platform's launchpad ecosystem — led by Pons, GMGN, and Uniswap — drives record fee generation.
Robinhood Chain collected $6.04 million in transaction fees over a recent 24-hour period, a record for the network, with memecoin trading and token launches driving much of the activity, DefiLlama data shows. The chain retained approximately $5.44 million as revenue after settlement costs and fee-sharing obligations to the Arbitrum ecosystem. Decentralized exchanges on the network processed roughly $1.71 billion in trading volume over 24 hours, with seven-day DEX volume reaching $9.95 billion.
The AMC token's trajectory mirrors the broader pattern of memecoin launches on retail-facing platforms, where initial euphoria frequently gives way to sharp retracements. AMC Entertainment has been a magnet for retail speculation since the original meme stock saga of 2021, when coordinated buying on social media platforms sent its share price to levels disconnected from fundamentals.
For traders, the elevated volume — still ranging between $70 million and $150 million after the collapse — suggests the token has not fully died. With the market cap now around $40 million and the price near $0.038, A Meme Coin sits at a crossroads, with the outcome likely to shape sentiment toward future token launches on Robinhood Chain.
This article is for informational purposes only and does not constitute investment advice.
