Gamestop admitting what we've all been suspecting.
(media.greatawakening.win)
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They are building a parallel system on the Ethereum Blockchain.
Overtly, it looks like it with be used for NFT collectibles, digital game "rental" capability (smart contracts), and internal loyalty / rewards, but there is speculation that they may offer stock dividends via NFT like Patrick Byrne did with Overstock. Neat stuff but not game-changing...
Read a little deeper and they're building out the framework for a complete stock / equities / futures market that would end Wall Street as we know it. Fuckery would be all but impossible.
I have not looked into the specifics of what they are designing (I really need to) but if all stock trades are done via NFT there is no reason for any middlemen in any sale.
Each stock on NFT has a unique identifier, which can be traded unambiguously and instantaneously between two parties. There is no reason for market makers. There is no reason to create a short. There is no intermediary loophole to exploit (at least none in the sense of the market itself, I don't know if there are any in the system of NFT/blockchain).
I don't know about creating a new "futures" market. If they are doing that I am deeply suspicious (as I said, I really need to look into it). All derivatives are themselves exploits of the system. All bets that a company will do poorly (other than not investing in the company at all) are ripe for manipulation of the system. Puts and calls can make or break companies. Their very nature is manipulation. So if they are doing anything but creating a system for just buying and selling stock, I am very worried. Any of the other casino type systems we currently have, has potential to be disruptive to a free market.
Yep, this. A great side effect is that it would destroy the current system's incomplete reporting and fraudulent use of CDOs / ETFs / "Prime Brokerage Select" derivative securities which hide what's really going on under the covers.
Because each share is tokenized and tracked, it can only be lent once- unlike now, where a single share included in an ETF "basket of stocks" could be shorted by shorting the ETF, plus allows for the creation of another ETF of ETFs which shorts the original ETF's share again- effectively allowing the original share to be re-borrowed and resold multiple times (creating fake / synthetic shares, aka "rehypothecation").
That's a huge market risk, not only for the company, but for the original lender- if the counterparty that borrowed the share defaults, the lender would be on the hook to cover all the synthetic shares created from it.
The inverse is true as well.. it doesn't just apply to short sales- long sales can be rehypothecated the same way and represent the same level of risk should the stock move the other direction.
Why do shares need to be "lent" at all? There is no reason for such a system to exist. The entirety of the market that is built up around derivatives is by its very nature manipulative. The ONLY path to a truly free market is, if you like a companies prospects, you invest in the companies stock. If you don't, you don't. ANY OTHER SYSTEM is designed for manipulation.
Exactly why buying and holding GME is destroying the system, their computers and quants never thought of a scenario where buyers would not sell regardless of price movement and would buy more at any price point
Eh, in one case, I'd say that a market that allows lending is a freer one. If I own 100 shares in a company, who should be able to tell me what I should do with those shares? No one, that's who. They're mine. That presumes, however, that I have my shares in hand before lending them to my 'tarded friend... and that really is the crux of the situation we're in: my shares, in my hand and ability to do what I want as opposed to creating notional shares out of thin air because some fatcat wants to make a crazy roulette bet.
Short selling is not necessarily a bad thing. Naked shorts are. Look up Carson Block and what he did with Muddy Waters. In summation, he used shorts strategically to expose fraudulent (Chinese) shell companies operating on the NYSE. Likewise, when companies do scumbag things that hurt their customers and investors, shorting the stock is an effective tool to get them back on the right track (think Coca-Cola, Delta, Nike, etc.).
I also don't agree with considering Futures as a derivative- but I also think they should only apply to commodities, not equities; and with no provision to take a cash settlement, physical delivery only. Remember, the whole existence of the futures market was to help farmers schedule supply around market demand, and lock in prices ahead of time while getting some advance capital to plant wheat, grow hogs, etc. It's just gotten twisted into something incredibly perverse but it's salvageable.
One derivative I can get behind are mutual funds. ETFs exist because they wanted the flexibility to mix and match investments like in a mutual fund, but didn't want to be burdened by those pesky rules and regulations mutuals are subjected to that protect the investor- why I'm all for mutuals. Investing long in a bunch of good companies at once to get a stable investment with consistent, slow, long-term growth and low risk is appealing to a lot of investors and generally a good thing.
If it is harmful to the market then it could be illegal. Then it would be the law that would tell you what you can or can't do with your shares. I assert that is the case because there is NO NON-MANIPULATIVE REASON to be lending a share. It is an exploitable loophole. You have provided no contrary evidence for that assertion.
Your justification for being able to SHORT SELL is because it exploited ANOTHER problem in the market? OMFG.
There is zero benefit to selling short. It's market manipulation through and through. Selling short is betting that a company will fail. You don't have to create naked shorts to short sell the competition out of existence. You just have to have enough money to drive the price down through short selling to make everyone else jump ship. Short selling is nothing but gambling and it is ripe for manipulation.
Every single aspect of the market is designed as a casino other than investing in a company you like. IT'S ALL A FRAUD. It was designed specifically to transfer all real assets into the hands of the few, to take us into the Great Reset where we will own nothing. I will be exposing the entire scam in the report I am working on.
Funds exist for one reason only (in the way they are currently being used). Funds allow for asset managers to take money from the people and buy voting stock from all the assets in the world. By law, these asset managers own everything. If you haven't seen my report on this, please look here.
If GME issues dividends as NFTs, the holders of the synthetic shorts have to pay out NFTs that they don’t own and can’t get. I don’t think it’s going to prevent fuckery just make it public and blow up the system.
The way I read it is... if a company issues a dividend, then that dividend is distributed to the shareholders by the DTCC. If GameStop's dividend is in the form of a NFT, then like you said, there will only be enough NFTs for the legit shares, and that makes a huge problem. At that point the DTCC is put in a position to say that they can't/won't distribute the dividend (NFT) and if they can't uphold that obligation then GameStop has the option of taking their shares to a whole new platform (speculation of a new blockchain trading market being developed).
If all that happens, then it would be great to get an honest market system in place, and leave the corrupt Wall St. current system to die... but what becomes of all the naked shorts that the hedge funds are holding at that point? I'm confused about that part... or maybe I'm confused about everything going on with this, lol.
That’s the fun part, shorts have to buy back every single short until the float is 100% back to it’s original figure. The theory behind the infinity squeeze is that Apes are pulling shares out of circulation by never selling even during MOASS. With how badly GME is shorted, it’s almost safe to say Apes alone own the float, maybe even multiple times over.
If the squeeze happens organically the DTCC takes the hedge funds long holdings as collateral and gives them cash in exchange, this would prevent a total market collapse. After the hedge spends the cash or hides it in the Cayman Islands, then they still can’t deliver and the DTCC liquidates their remaining assets and the computer starts filling the delivery orders starting with the lowest priced stocks and doesn’t discriminate on price to fill the shorts. The DTCC has quite a bit of funds available to do this.
I understand that, the only part that I don't specifically understand is if GameStop moves their shares to an all new blockchain/NFT market... I don't understand how that would work, and how it would effect the hedge funds and the synthetic/naked short shares. Obviously something like this is uncharted territory, so I'm just trying to understand how it might work.
This is someone working with gamestop on their NFTs (Non fungible tokens/blockchain) technology. They seem to be admitting that their NFT project really is going to be bringing about a new financial system, which is something we've been speculating on over here and at superstonk.
GameStop sent a letter to the DTCC saying they would pull out their shares from the DTCC if need be 👀👀
That's the part I don't understand... If GameStop moves its real shares to a new market (a blockchain NFT market they are developing?) then what happens to all the synthetic/fake/naked short shares?
I don't have a Reddit profile, but I do browse Superstonk, and haven't seen a real explanation of how this would work.
Gotcha! Honestly, this is 100% uncharted territory. Boggles my mind, tho.
We have also been transferring shares to computershare,to hold our shares in direct registration. They can only transfer real shares. Once we transfer enough it's game over.
I'm going to look into this. I currently have GME shares split up between three different brokerages.
You have to goto the computershare website,and make a minimum purchase to open an account then after a few days they will send you a text saying your share has been purched,they Finnish opening your account. With a login and password. Then contact your broker and have them send the shares to computershare. They will tell you that computershare has to initiate it,but that is wrong they are not a broker. Go to r/gmejungle they have a sticky post on the topic for more info.
Thanks.