Money Mushroom Memecoin Drives Nasdaq Penny Stock Volatility

Shares of Farmmi (NASDAQ: FAMI), a Chinese mushroom supplier, spiked to $0.50 on a single day, a 321% jump from the prior close, after a meme‑token named Money Mushroom began trading against a token labeled “FAMI” on Robinhood Chain. The on‑chain token, however, was not a legitimate tokenized share.

Token Supply Created in One Transaction

The on‑chain FAMI token has a fixed supply of 37,430,000, matching Farmmi’s reported share count. All tokens were minted in a single transaction by one wallet, which retained 38% of the supply and later deployed a contract called PoolRepricer to adjust the pool price.

No Issuer or Redemption Mechanism

Unlike Robinhood’s official stock tokens, which are issued by Robinhood Assets (Jersey) Limited and can be minted or redeemed by authorized participants, the FAMI token lacks an issuer, a redemption path, and any connection to actual Farmmi shares.

Price Manipulation via PoolRepricer

The deploying wallet performed multiple pool‑creation and liquidity‑adjustment transactions after the token’s launch, using the PoolRepricer contract to influence the token’s price. The token’s price reached $1.83 in its USDG pool at the same time Farmmi’s Nasdaq price hit $0.50, and later settled at $0.2135, roughly 45% above the stock price.

Money Mushroom (JINQIAN) Trading Activity

Money Mushroom, ticker JINQIAN, was deployed with a 1 billion token supply. Its pool against the FAMI token opened at 9:32 a.m. ET and generated $92 million in volume across 92,926 transactions in the first few hours. The token’s price peaked at $0.0761 before falling to $0.0058.

Other Meme Tokens Launched

Within minutes of JINQIAN’s launch, at least ten additional meme tokens (e.g., FARMMI, MUER, FAMILY, GME, CASH CAT) were created against the FAMI token, though none achieved significant volume.

Regulatory Context

Farmmi is currently under a Nasdaq deficiency notice for trading below $1.00 for 30 consecutive business days. The company must maintain a closing bid of at least $1.00 for ten consecutive days by February 8 2027 to regain compliance.