Gamestop admitting what we've all been suspecting.
(media.greatawakening.win)
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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.