TLC: THE LONG CON:
The markets are frothing with liquidity.
AN APES GUIDE TO CRYPTO PART 4
How Wall St. conquered the wild west of crypto by laundering funds obtained from illegal naked short selling practices through stock market exchanges worldwide.
Mobile Edition & full PDF: https://docs.google.com/document/d/1fdZV5B6RtyVurxcVsXAOtWNn5NE8BZS1TPu24ZAzLkI/edit?usp=sharing
PART 1PART 2PART 3PART 4PART 5
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WHAT IS A BLACK SWAN?
A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, severe impact, and the widespread insistence they were obvious in hindsight.
Key Takeaways
- A black swan is an extremely rare event with severe consequences. It cannot be predicted beforehand, though after the fact, many falsely claim it should have been predictable.
- Black swan events can cause catastrophic damage to an economy by negatively impacting markets and investments, but even the use of robust modeling cannot prevent a black swan event.
- Reliance on standard forecasting tools can both fail to predict and potentially increase vulnerability to black swans by propagating risk and offering false security.
Examples of Past Black Swan Events
- The crash of the U.S. housing market during the 2008 financial crisis is one of the most recent and well-known black swan events. The effect of the crash was catastrophic and global, and only a few outliers were able to predict it happening.
- Also in 2008, Zimbabwe had the worst case of hyperinflation in the 21st century with a peak inflation rate of more than 79.6 billion percent. An inflation level of that amount is nearly impossible to predict and can easily ruin a country financially.
Now reconsider how GME / BTC ETH Correlation looked in Chapter 2.
Do you see now?
Let me show you that correlation again, its justified:
Ah voila; The result of hedge fund & marketmaker fuckery with synthetic assets
Do you see now?
CHAPTER 5:
THE TETHER BETWEEN CRYPTO, RRRP’S & NSCC 802
(I know you know what I did there)
I noticed something interesting..
This piqued my curiosity and I dove a bit into a few different coin charts and had a look at volumes traded.
We can only assume that stablecoins do not fall into the same categories as the majority of other crypto currencies. Due to DTCC reporting we can only see outlines of initiatives that are enforced however rarely do we get to see the inner workings of the fine print on the paperwork. In my interpretation, a stablecoin, being pegged directly to the $USD would not be subject to ‘material adverse change’ as it is a like for like coin. This is a strong conviction of mine however the NSCC 802 filing breakdown simply confirms legislation but that we as the average person are not privy to the inner workings of that information.
Tether, one of the StableCoins,
RED BOX: Funny how the volume dramatically increased right around the time NSCC 802 was enacted, surely its not just a coincidence?
ORANGE BOX: What happened on either may 13th and subsequently may 19th that could affect this increase again? something happened on may 13th as this interestingly coincides with the day that $GME started its uptrend.
BTC & ETH also bottomed out around this time at a flat 30k$ per BTC and 2k$ flat per ETH.
Another coincidence? No, it was because of wall street liquidity stress tests and subsequent follow up tests on May 13th & May 19th because someone has been trying to hide too much cash.
When the filing: SR-NSCC-2021-802 was posted I can remember at the time hearing grumblings about crypto not being accepted as liquidity on balance books but had never considered its ramifications.
please find below some of my findings.
on page 14 of SR-NSCC-2021-802 April 29, 2021
https://www.sec.gov/rules/sro/nscc-an/2021/34-91720.pdf PG 14
https://www.sec.gov/rules/sro/nscc-an/2021/34-91720.pdf PG 14
So in the NSCC filing it defines that the only acceptable form of 'qualifying liquid resources' to include, among other things, lines of credit without material adverse change provisions, that are readily available and convertible into cash.
Now this filing was on april 29th and had 5 business days to be enacted.
This takes us to May 4th.
Remember how I briefly touched on DeFi UNISWAP AND PANCAKE SWAP?
Well, have a look at this.........
https://coinmarketcap.com/currencies/pancakeswap/
https://coinmarketcap.com/currencies/uniswap/
you can see volume increases similar to short sold volume on GME : every spike in volume relates to a movement in GME
They were parking their money in places where the daily returns were better than the daily interest costs to borrow the shares
NOTE: LP TOKEN VOLUME CONNECTION TO GME SHORT VOLUME
Nearly all the DeFi pools peaked on May 3rd evening time rolling into May 4th
THE DOGECOIN PUMP & DUMP
Please find below an unusual Dogecoin eWallet that the quants checked out:
This wallet has been analyzed by our quant-ape team and we have deduced that there is a high probability that this account in particular has been active in illegal / fraudulent market manipulation.
If you look within the account to here:
Please see in the above sample, image 1, which is this account for doge coin holdings:
https://bitinfocharts.com/dogecoin/address/D8vFz4p1L37jdg47HXKtSujChhP9f3doTK
If you see the section I have highlighted you can see very clear unusual activity. We believe that this specific account in advance mass purchased Dogecoin with the sole intention of a future pump and dump scheme. The purchase was made long before any true media spotlight or notable increases in volume from retail investors.
The spike took place on 8 july 2020. The days prior to and after also had unusual activity.
If you look at both accounts:
Please find below attached dogecoin wallet #2:
Image 2.
https://bitinfocharts.com/dogecoin/address/DCUrdaVWg71kBqNSrYWHV4AnXgd7XDmHK1
This account has also been flagged by our quant team as having transacted under suspicious circumstances.
If you look at the section I have highlighted, this is 8 July 2020. The day before and after there was unusual activity on the account. This activity correlates with the account in image 1.
Please then see image 3 below:
Looking at image 3, you can see the deviation between the high and low prices throughout the day on Jul 8th 2020. If you look at days either side of these transactions you can see further unusual activity between the same 2 accounts on July 7th and July 9th.
It is on this evidence that I conclude that these accounts were used to artificially inflate the price of Dogecoin by:
making transactions back and forth at overinflated prices, by doing so inflating the market cap and on paper making it look like they have a lot more assets on their books than they actually do, but also by inflating the coin they essentially test the viability of a pump and dump scheme.
If you look again on images 1 & 2 you can see another connection in which transfers were made between accounts on the 13 march 2020 a further spike and retrospective dip. I believe this was a ‘test round’.
Image 4.
The spike on May 8th 2021 was due to an appearance on, SNL, Saturday Night Live @ 11.30pm ET
This is only a running thought on a certain ominous TV appearance.
Said person dealt with a history of shorts on their company themselves over the latter half of the 2010s.
With short positions having been squeezed out it resulted in many long positions being opened in that company.
Said person was stuck between a rock & hard place, if Doge tanked, his company tanked (Doge was used to inflate SHF books who were long on other companies)
Therefore if Doge increased it gave hedges time to fight another day.
I THEREFORE ASK YOU TO THINK AGAIN THE USE OF FTX WITH DOGE. WHO WAS RUMOURED TO BE THE LARGEST HOLDER OF DOGE? DO YOU SEE?
The BTC accounts with unusual activity:
As identified by some members of our Quant-ape team
The worlds 4th largest bitcoin account
eWallet 1p5Z & a workin slush subsidiary eWallet
https://bitinfocharts.com/bitcoin/address/1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ
https://bitinfocharts.com/bitcoin/address/38UmuUqPCrFmQo4khkomQwZ4VbY2nZMJ67
One of our quant apes ran some analytics on several interesting BTC accounts that have flagged up multiple times
https://drive.google.com/file/d/1zC3Ooy-smF-Ub-Lpkoy7d6hh3I8NpVLh/view
Please look at the attached doc folder containing a list of the high volume pass working downwards to lower volume pass in order of significance.
If you look at significant dates such as January you can see interesting activity and through other date ranges I have mentioned spikes.
As much as these accounts are interesting, unfortunately there is no conclusive connection to draw from them but I felt that they are worth mentioning as they were part of my research into GME & crypto.
Take this information as you wish.
Also note the list of subsidiary temporary holding accounts.
CHAPTER 6:
THE REPERCUSSIONS OF NSCC 802
If you notice on every single graph and chart I have presented to date, all have peaked in early May 2021.
From StarWars day the crypto markets started a downturn.
Interestingly, on introduction of NSCC 802 on april 26th whilst awaiting to be initiated Bitcoin rallied as Wall St. emptied DeFi TVL (Total Value Locked) and consolidated their portfolios into BTC.
Post StarWars day all crypto TVL began its decline.
This led to some $900 billion dollars loss in total value of the crypto markets.
The global crypto market cap was over $2.5T only to decline to $1.37T as of 09:00am UK GMT 06/21/21 from 05/04/21
Too. many. god. damn. coincidences. FOLLOW THE MONEY!
from my understanding of reading the legislation in NSCC 802 with 'qualifying liquid resources ....without material adverse change provisions.' means that Tether likewise many other stablecoins are not classified under the same asset grouping and therefore are not impacted by this ruling.
It is certainly possible that we are looking at some of Kennys potentially laundered tendies right here.
In essence the money that was withdrawn from interest yielding projects was cashed out and converted into stablecoins and B coin ensuring books would balance as needed. There are still large sums of hedge fund capital amassed in these projects , not everything was withdrawn, only enough is withdrawn as necessary to balance books.
So you would think that with NSCC 802 in place that would be the end of it but hol’ up Kenny figured out how to buy himself another few days.
Please find below a few charts of recent activity of a small sample of many searchable coins all of which show interesting patterns in and around early May:
There are a whole host of similar coins all with similar upticks and start dates in ‘n’ around the start of May 5th - May 13th, above is a small sample
If you scroll back up and check that Tether chart withe the orange and red boxes, look at around the start of May and May 13th for me could you? See?
Privacy coins & their suspected use by hedge funds avoiding margin calls:
Q. CAN YOU HOLD A PRIVACY COIN SYNTHETIC ASSET ON PAPER THAT IS UNTRACEABLE?
You could maybe even call it CAPITAL X, boomers aren't creative, I bet it was actually recorded in the books under the name Capital X, WHO knows?
Privacy coins are a class of cryptocurrencies that power private and anonymous blockchain transactions by obscuring their origin and destination. Some of the techniques used include hiding a user’s real wallet balance and address, and mixing multiple transactions with each other to elude chain analysis.
However, privacy coins handle two different aspects; anonymity and untraceability. Anonymity hides the identity behind a transaction, while untraceability makes it virtually impossible for third-parties to follow the trail of transactions using services such as blockchain analysis.
See below: PRiVCY coin purchased en masse from 1 hour after NSCC 802 was enacted.
The coin lay in wait until it was called upon on June 15th, yes, only yesterday, to help balance the assets/liabilities in a hedgies books.
They buy the coins for pennies, then sell a couple back and forth at overinflated prices in the $,$$$’s, by doing so inflating the market cap and on paper making it look like they have a lot more assets on their books than they actually do, to balance out their liabilities (naked short positions.
So when did our reverse repo rates kick off, oh go on lets have a wee lookie look and see.........
It looks like the exponential rocket ignited some time between may 3rd overnight and oh my god May the forth be with you right before Cinco De Buyo day happened.
Reverse Repos simply signify that at this current moment in time there is nowhere safe to park spare capital whilst being able to hold it in assets to balance books.
Therefore I cannot deduce that the increase in RRRPs are directly caused by SHF shortselling however it does indicate that the markets are frothing with liquidity.
Another interesting connection is the date in which NSCC 802 was presented. Look at the date our RRRPs started, even before the May 3rd dip.
I also refer to the chart of BTC showing the NSCC 802 enactment and liquidity test day.
Making the connection that it was shadow banking sector / hedge fund money in crypto that was rug pulled and hence initiated the decline of the crypto markets.
https://fred.stlouisfed.org/series/RRPONTSYD#
I believe that prior to the NSCC filing being passed and enacted, the SHF have been using DeFi Proof of stake coins to hide a lot of the cash that had been amassed from having sold short soo many shares across the field, not only in GME.
If you look at the correlation of when the Reverse Repo Rates ignited, it is the same time of this filing, the same time crypto PoS tanks, and the same time that the NSCC enacts the filing to prevent crypto being used as liquid.
I believe that prior to May 4th, these coins have been the primary location for hiding funds gathered through naked short selling, and prior to may 4th these coins were considered liquid assets on the bank balance sheets. Post May 4th, they are no longer considered liquid but rather assets and so we then saw the overall downturn of the crypto markets.
There was further information late April/early May that precluded that Crypto due to reclassification as an asset rather than liquid would be eligible for different tax status (commodities/equities taxes)
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