I've just stopped checking. I have everything in GME (with the exception of one NA company I'm holding for sentimental purposes with $100 in it). I figure if something big happens, I'll hear about it.
margin requirements have changed in a big way... I would not be surprised if they're dumping crypto/etc to cover some calls. The margin requirements are going from $10k to $250k, among other things. The expectation is that a bunch of the smaller hedge funds that are short are having to close. Not just cover, but close.
The official rules go into effect on 1-Sept, but I'm wondering if some of the prime brokers aren't making calls now to try and get out while it's still "cheap".
It's the theory I've read by much smarter and financially savvy folks. Makes sense to me, too. Crypto to me is a great vehicle for pure speculation values and manipulation by the same players that need to cover their asses on these "meme stocks."
A very interesting read. https://reddit.com/r/Superstonk/comments/pb22oj/the_puzzle_pieces_of_quarterly_movements_equity/
Friday will be the last day you can purchase non Pink current OTC stocks through all the major brokers, it's going to thin the herd considerably. I don't remember the exact numbers, but it's going to drop from 1200 tradable down to about 200.
I was a bit off in my numbers. Someone else just posted a bit dated (Although accurate ) information: "There are a total of 1246 companies between .0001 and .01 all tiers in otc. Out of this number 962 are non reporting stop signs meaning 76% of these companies are non complaint. Out of this 962 less than 15 are granted custos in process let's say another 20% of 962 get current That leaves about 207 companies left between .0001 and .01 which mean by the time the new rules take hold 83% will be gone. Out of the 207 less than 15 are debt free with zero convertible notes clean shells." Basically, if a company is not Pink current by Friday you will be unable to buy it. You can sell what you do have (Although that may be difficult since the major brokerages won't allow people to buy) Once a company is back in compliance it can trade again. This is all due to a new SEC regulation that takes effect this month requiring a bare minimum of financial reporting in OTC to trade. This is going to weed out a great deal of the absolute garbage tickers that are run out of someone's garage.
https://www.hollywoodreporter.com/n...eal-link-scorsese-s-wolf-wall-street-1244217/ Money involved in financing something in Hollywood is tied to criminal activity? Shocking!
It's a blood bath for non current OTC tickers today. HPIL, which was a heavily traded OTC meme stock, is down 57% this morning.
This evergrande story out of China is pretty crazy. If the tether rumors are true, the crypto market is about to blow up. Markets might take a hit over the next few days.
"the next few days?" lol Dude... the new OTC rules, the naked shorting on GME, and a bunch of margin calls are driving a huge selloff of crypto to get liquidity. Today was already a huge hit to crypto... much more to come. Evergrande is just the tip of the iceberg, and could very well be the initial domino that kicks off a huge implosion.
To expand a bit on the OTC situation... The hedge funds do not have to pay tax/etc on a short until they close it out. As in pay for it and close their positions. Well, they don't do that. So that's why there are millions of shares of Sears, BlockBuster, etc, sitting in the OTC, worth fractions of a penny, but still there, not closed. Well, the new OTC rules that came down has basically said that they need to close on them. That's why they've been shooting up 1500%. On a bankrupt, almost delisted company. They're fucked. Naked shorts, and taxes due (they've been saving TRILLIONS by never closing them), never mind lost collateral for their margins, means that they are FUCKED. They need cash, and now... so they're dumping their crypto to come up with it.
And GME earnings call is tomorrow, and there's talk about them being added to the S&P 500. "Why?" you may ask? Some people posit that they will be fucked without having some GME in it because of the MOASS that is about to fucking wreck the US markets. GME might be the only thing that saves the S&P 500. Wouldn't that be a kick to the nuts.
I haven’t looked at it in depth yet, but I’m amazed that a company of this size could be insolvent (without China stepping in already). To your point, it makes me wonder what the hell else is happening in China right now. So much debt off their balance sheets, nobody will be able to predict where this shakes out. It’ll hit industrials and banks, but I also think about the thousands of Americans who have their life savings in crypto. They’re out there, unfortunately. There have been rumors about tether for years. If they are holding the commercial paper, it’s going to be a mega blow up. Hell, think about the $15 billion in Bitcoin that Tesla has. What happens if they try to sell it?
It's not just China. Go look at Archegos and Credit Suisse. China is its own special little bit of hell where they've been trying to "one-up" everyone by bluffing, but it's to the point where they're being called, and are fucked. A lot of the financial world is like that. Most banks are broke... just remember that. Joys of fractional reserve lending. It's one big casino, but it's the house that's bluffing.