TLC: THE LONG CON:
The markets are frothing with liquidity.
AN APES GUIDE TO CRYPTO PART 3
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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The first theory is straightforward. You can pump up the crypto market when buying your FTD’s through CM-Equity so that your crypto is worth more when purchasing your FTD’s. You then liquidate your pump in order to not have some other whale take advantage of your pump. For this to be true you would see crypto prices increasing from the previous day as GME goes through major FTD cycles. The below chart represents some correlation regarding change from previous day on GME, Bitcoin and Ethereum.
As you can see there is some correlation for sure with GME and the Top two Cryptos. The correlations seem to diverge after march and correlate strongly on the highest FTD cycles and accompanying price drops.
This is only Bitcoin and Ethereum. Mapping out other altcoins such as DOGE would also give more Data points.
The theory is simple start pumping crypto prior to January because you see the writing on the wall. Doing this allows you to use some of your inflated assets to purchase GME shares. You could always liquidate crypto to do this but my gut feelings is something happened in January where the liquidation of crypto was not giving them the best bang for their buck so they got with their friends in FTX, Bittrex, and Binance to create these stock tokens for the “wallstreet bet meme stocks”. The claim by these companies was to give retail the opportunity to trade these without the fear of trading interruptions that were going on with Robinhood.
So when did Robinhood prevent users from selling on their app? 1/28/2021. These companies created these tokens the day before and even got all of that approved in hours through their custodied partner CM-Equity just to fight off the evil RobinHood for retail. Yea… OKK.
Tokenized Stocks FTD Theory 2 – Using Tokenized Stocks to Move their FTD Cycle to T+35
SEC Regulations on Short Sales
Let us get into the boring SEC stuff. I had to pry my eyes open for hours to understand this mess.
So what are the borrowing and delivery requirements for a short sale? Below is taken straight from the SEC rule book that is in effect today
“(b) Short sales. (1) A broker or dealer may not accept a short sale order in an equity security from another person, or effect a short sale in an equity security for its own account, unless the broker or dealer has: “
“(i) Borrowed the security, or entered into a bona-fide arrangement to borrow the security; or “
“(ii) Reasonable grounds to believe that the security can be borrowed so that it can be delivered on the date delivery is due; and “
“(iii) Documented compliance with this paragraph (b)(1).”
That seems straightforward and reasonable but wait of course the rules don’t apply to everyone. See the next clause which is an exceptions clause. I only pasted over the two important ones relating to this post. The rest can be found here in section 242.203.
“(2) The provisions of paragraph (b)(1) of this section shall not apply to:
(ii) Any sale of a security that a person is deemed to own pursuant to §242.200, provided that the broker or dealer has been reasonably informed that the person intends to deliver such security as soon as all restrictions on delivery have been removed. If the person has not delivered such security within 35 days after the trade date, the broker-dealer that effected the sale must borrow securities or close out the short position by purchasing securities of like kind and quantity; “
“(iv) Transactions in security futures.”
So as long as you can deem to own it following any of the exceptions laid out in § 242.200 then you now have extended your delivery timeline to 35 consecutive days from the day of purchase. You can also legally have short sale transactions in security futures. HMMMM INTERESTING. Did you know there are security futures in tokenized coins… Don’t worry we will get into that later.
What the hell is in section 242.200 short sell and marking requirements? Let us dive in.
“§ 242.200 Definition of ‘‘short sale’’ and marking requirements.
“(a) The term short sale shall mean any sale of a security which the seller does not own or any sale which is consummated by the delivery of a security borrowed by, or for the account of, the seller.
(b) A person shall be deemed to own a security if:
(1) The person or his agent has title to it; or
(2) The person has purchased, or has entered into an unconditional contract, binding on both parties thereto, to purchase it, but has not yet received it; or
(3) The person owns a security convertible into or exchangeable for it and has tendered such security for conversion or exchange; or
(6) The person holds a security futures contract to purchase it and has received notice that the position will be physically settled and is irrevocably bound to receive the underlying security.
Well now we can see that there are three possible ways already under 242.200 where it is possible to do some tokenized coin fuckery. Rules 2, 3 and 6 are what we are going to focus on but let’s get into some terminology that we will have to get familiar with first.
Security Futures Contracts
“A security futures contract is a legally binding agreement between two parties to buy or sell a specific quantity of shares of a security (i.e., common stock or an exchange-traded fund) or a narrow-based security index at a specified price, on a specified date in the future (known as the settlement or expiration date). If you buy a futures contract, you are entering into a contract to buy the underlying security and are said to be "long" the contract. Conversely, if you sell a futures contract, you are entering into a contract to sell the underlying security and are considered "short" the contract. The price at which the contract trades (or the “contract price”) is determined by relative buying and selling interest on a regulated.” – Finra
So it is a contract between two parties to buy a security or index security in the future at a specified price.
One common asset that this is done with is oil. The price of oil is very volatile so to handle some of that volatility, a refinery will negotiate a futures contract of oil. Let’s say oil is trading at 80$ a barrel and one entity on the deal thinks oil will rise and the other thinks oil price will drop. To make a win-win contract for the future and handle your balance sheets better, you negotiate future contracts on the price of oil. So, you may agree to pay 90$ in a month for 1 million barrels of oil.
How do futures on tokenized stocks work?
Information from Tokenized Stockbroker FTX below.
“FTX also lists futures on tokenized stocks, including tokenized futures.
Tokenized stock futures will track FTX spot markets as their index. They will work the same as futures on other FTX products, with the following conditions:
- In the case of an ordinary dividend, the futures will not have any adjustments
- In the case of many other corporate actions, including stock splits, significant spinoffs, etc., futures will adjust, either by changing denominators or by turning into a future on the whole basket in the case of spinoffs.
- FTX reserves the final right to determination.
- Futures expire to their index (generally the FTX spot markets) over the relevant TWAP period.”
Source.
So what is the difference between options and futures?
An options contract gives an investor the right, but not the obligation, to buy (or sell) shares at a specific price at any time, as long as the contract is in effect.
By contrast, a futures contract requires a buyer to purchase shares—and a seller to sell them—on a specific future date, unless the holder's position is closed before the expiration date. - Investopedia
So can you get out of a futures contract at any time? Well let us look into Investopedia again.
What about getting out of a futures contract?
“The investor may instead decide to buy a futures contract on gold. One futures contract has as its underlying asset 100 troy ounces of gold. This means the buyer is obligated to accept 100 troy ounces of gold from the seller on the delivery date specified in the futures contract. Assuming the trader has no interest in actually owning the gold, the contract will be sold before the delivery date or rolled over to a new futures contract.
As the price of gold rises or falls, the amount of gain or loss is credited or debited to the investor's account at the end of each trading day. If the price of gold in the market falls below the contract price the buyer agreed to, the futures buyer is still obligated to pay the seller the higher contract price on the delivery date.”
So initial collateral is needed. In the case of tokenized stock futures you also have to have collateral in your account that can purchase the entire futures contract. There is a leverage allowance for crypto but not tokenized stocks.
You can use tokenized stocks as collateral for crypto futures and vice versa. Here is a snippet regarding using the tokenized stock as a collateral like Crypto tokens.
“Tokenized stocks are spot tokens, like BTC/ETH/FTT/etc. They can also be used as collateral for futures trading on FTX, with a collateral weight of 0.85 (total) and 0.80 (initial).”
FTX Futures
Here is how you post collateral for futures in FTX. Source
“Collateral for the futures is in stable coins. The current set of accepted stablecoins is USDC, TUSD, and PAX.”
To deposit or withdraw collateral, go to your wallet page and deposit either USDC, TUSD, or PAX. Depositing either will credit your account with 'USD', which is automatically used as collateral for all of your futures trades.
By default all margin is posted in 'USD' in your wallet. USD can be funded by depositing USDC, TUSD, PAX, BUSD, and HUSD.
Balances of the following coins also count towards collateral:”
Tying this into GME:
So how can this help shorties? Well look at rule 6 that allows you to use the T+35 rule.
(6) The person holds a security futures contract to purchase it and has received notice that the position will be physically settled and is irrevocably bound to receive the underlying security.”
Well, well, well. So shorters such as Citadel can make a futures contract that they hold full collateral and will purchase the stock at a certain price in the future. FTX allows for leaving the contract at any time so in order to meet SEC rules they would have to pre-arrange a future settlement where Citadel has to purchase the shares at the end.
(3) The person owns a security convertible into or exchangeable for it and has tendered such security for conversion or exchange; or
So as long as shorters OWN a convertible and have tendered such security for conversion or exchange, they can use T+35. Basically, shorters can purchase stock tokens and make an arrangement for future conversion. That’s where the grey area is and Citadel hiring an SEC official can help them out. The futures contracts can also work out here, arrange a bitcoin conversion in the future based on the current inflated rate and pay the bitcoin up front knowing the bitcoin price is very inflated.
(6) The person holds a security futures contract to purchase it and has received notice that the position will be physically settled and is irrevocably bound to receive the underlying security.
Well with this loophole you do not have to pay up front. You only have to have a legally binding contract to purchase the security at a future date. Make the future contract with inflated crypto prices then liquidate and purchase shares with your liquidated bitcoin price.
Pump a coin, trade a synthetic asset mirror stock at a high base coin price, coin falls in price, you still own 1 synthetic gme. The synthetic GME is still like for like but the underpinning coins value is volatile and fluctuating. This creates ARBITRAGE to buy and sell mGME based on the foundation of a volatile underlying coin for example Doge, BTC, ETH or even a private coin, allowing for windows to profit in.
Mirrored stocks & shares:
Maybe someone doesn’t want you to see ;P
mGME/UST
https://coinmarketcap.com/currencies/mirrored-gamestop-corp/
Heres one they prepared a little earlier:
https://coinmarketcap.com/currencies/mirrored-amc-entertainment/ UST/mAMC
BUT HOLD ON. WHY STOP THERE?
Planning on shorting ETFs? Remind me who was shorting ETFs? Lets make some money.
https://twitter.com/linearfinance/status/1369648943068549120?lang=en
Pornhub.com/Citadel-Home-page/Futures-Fetish
I reiterate the use of tokenized assets futures FX!!!
Pornhub.com/SEC-profile-page/Fetish-69/hard-w00d
Well look at what else peaked around the same time as nearly everything I’ve covered in this DD.. talk about morning glory in May!
Even better still it's a mirrored synthetic asset based off yet another privately unstable stablecoin
There’s a lot of synthetic asset derivatives tokenized off the stock market based on unstable stablecoins isn’t there?
That sure is a lot of layers isn't it?
QuickFire Question..
Q. Do you know what else has layering in it?
- Money laundering.
So let's ask ourselves,
Where do these synthetic assets originate from?
A bit like our little HoC Due Diligence and our discovery of rehypothecation, let's see where the rabbit hole takes us…..
CHAPTER 4:
THE CRYPTO CARTEL
- JP MORGAN
- GOLDMAN SACHS
- CME
- BofA
- BARCLAYS
Some examples of platforms currently trading publicly, without a doubt there are many more off exchange / out of view:
Meet Oxygen.org
*Interesting tidbit for you: https://www.oxygen.org/index.html
Oxygen is a DeFi Prime Brokerage protocol to help:
- Get trading leverage
- Generate yield
- Get liquidity
- Borrow to short
Against your portfolio of digital assets.
They state:
‘Tested on trillions of dollars in the “real world” ‘.
More projects of the same kind:
Mirror finance: Synthetic asset protocol for creating & exchanging fungible tokens tracking the price of off and cross-chain assets.
https://finance.yahoo.com/news/mirror-completes-bridge-binance-smart-020000240.html
Synthetix.io: Decentralized synthetic asset exchange protocol enabling anyone to mint, exchange, and provide liquidity for a vast range of assets.
https://synthetix.community/docs/staking-snx-overview
https://synthetix.community/docs/trading-synths
https://ftx.com/en who we referenced above in the ‘Tokenized Assets’ section. I say no more.
A look at some of those credentials :
And who might have close ties to CME?
Meet the FUD maker himself: 'I don't know what a digital token is Ken' - feb 19th 2021
Isn’t that an interesting turn of events, slap bang in the middle of it all, Kenny himself.
https://www.cmegroup.com/company/center-for-innovation/melamed-arditti-innovation-award-winner-2019.html
NOTE THAT ALL PREVIOUS RECEIVERS OF THIS AWARD HAVE ALL BEEN RECOGNIZED FOR DISRUPTIVE TECHNOLOGIES ADVANCEMENT.
Why did Ken ‘I don’t know what A digital token is for’ Griffin get awarded?
Q. You’re telling me that the head of the largest handler of retail order flow in the US markets, who won an award for innovative contributions in his field, doesn’t know about the innovative disruptive technology that is going to revolutionize the very industry he champions? BULL
Their involvement in the crypto markets is to ensure that they came out on top.
It's all about power
Look at the core team, all are common names on the SHF news headline cycles, the same names keep cropping up
Even if you take CME out of the equation and look at the other banking institutions involved; its normally always the same appearances in the credits.
Just a little fine print fact:
The rules that apply to every single one of us don’t apply to Ken, he’s special & well tbh I just love reading the back of shampoo bottles when Im sat on the toilet so if I see Ts & Cs Im all over that like a fly.
If he was a retail customer he would have to ban himself.
NOW THIS ROUNDS US ONTO AN EXCHANGE CALLED LINEAR FINANCE:
I dug into that rabbit hole too; you really should go play dot to dot too...
Let me just repeat what I mentioned a few pages ago:
“Apart from simple market buying/selling and derivatives trading, synthetic assets create possibilities for seemingly infinite markets and combinations for new sources of value.”
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?
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