The question i would ask for those reddit investors is: what is your end game? What do you hope to get out of this? I like to target the big hedge funds and talk about how they manage money and how they get rich themselves.
The reality of it is, they have a skill set. Ladies and gentlemen, the financial world is raked cartels openly conspired together even to break the law, to protect their own assets at the expense of retail investors, rather than take a very deserving loss on their just shut up a moment.
This is important. I need everyone. Listening to shut down their robin hood accounts too much to the front door of their local banks and demand to open up a savings account. This has been fiat daily with a please sponsor me message, all of which has beautifully culminated into the ultimate advertisement for why the world needs bitcoin, mr beast and even elon musk now hashtagging it on their twitter profiles as a badge of honor.
Never before has it been so apparent why bitcoin is so necessary why blockchain is necessary and while what i'm about to get into is a huge topic to comprehend the manipulation, what exactly they did, what they're doing? Why the hope isn't yet dead? I will hopefully explain it in a way that it will be simple to grasp venture capitalist and bitcoin super bowl.
Chamath recently on cnbc gave a fantastic interview and broke down. What's happening into three stages? I think that what you're seeing is essentially a push back against the establishment in a really important way.
You have a lot of people and i would encourage anybody who is dismissive of this thing to go into wall street bets and actually just read the forums, and i think that you're, going to see three kinds of posts.
The first kind of content are a lot of people, doing some incredible fundamental diligence on companies trying to think about long-term value and, in my opinion, many of them are doing as good and, frankly, a better job than a lot of hedge fund.
Analysts that i work with that's number one. This all started with fundamentally good analysis. There was a genuine gold mine of an opportunity with gamestop stock that took the eagle eye of a retail investor posting it again and again to wall street bet.
Subreddit, the contents of which would have put most suit analyst skills to shame the company wasn't on the brink of collapse. They had a decent cash flow in reserve, but the stock was trading unusually low relative to earnings, because a large institution was manipulating the stock price down for their gain via naked short selling.
This buy gme movement was not a pump and dump scheme, at least not on the retail side. It was a calculated move. The plan was to dump on institutions who could not exit their shorts without buying a lot of the stock to cover their positions, which was in short supply, so they would be pushing the stock to the moon.
Same thing happened in 2010 with the silver market. Same thing happened apparently, to volkswagen that's. What that is, let's, continue the second or a lot of people who believe that you know coming out of 2008.
What happened was wall street took an enormous amount of risk and they left retail as the bag holder, and a lot of these kids were in grade school in high school. When that happened, they lost their homes, their parents lost their jobs and they & # 39.
Ve always wondered like. Why did those folks get bailed out for taking enormous amounts of risk and nobody helped and showed up to help my family so step two give people a cause uh that speaks so true to me.
The reason i'm here making this video today is because of what happened in 2008. I learned about bitcoin for the first time in early 2017 and immediately took a week off work to study and learn about it.
It ignited uh something inside of me, like almost nothing else had ever done previously in my life and it's, because i hated the banks honestly, and so i started a youtube channel to share my enthusiasm and let other people know about this amazing Thing that exists, let's.
Continue the realization that instead of having idea, dinners or you know, quiet, whispered conversations amongst hedge funds in the hamptons, these kids have the courage to do it transparently in a forum, and i'm, not saying all of it is perfect by any means.
But i think it takes an enormous amount of faith in the system to be that transparent to talk about things and then for each individual to make their own mind up and to do things whether it's to buy and to sell.
To recap stage one good fundamental analysis stage: two give people a reason, a cause they can get behind and step three empower people to act. The internet has given rise to decentralized communities all over the world wall street bets can seem like a weird cult, but you know their own side of the internet, but it's freely available for anyone to join it's, a representation Of what some people want to do and to talk about financial institutions hate this development? They would, rather, you rely on them and be told what to invest in and charge you fees for it, but the world is changing.
So these three things combined created a shooting upward stock price for gme. The fact that gamestop wasn't considered a good long-term bet turns this into a really big meme, which is amazing marketing.
Actually, because if there's, one thing that everyone loves it's, something funny. What is the most popular thing in the world? Music. No tell me i scream okay, it is not over, though not by a long shot.
Even though wall street tried to end it and crossed the line doing so, robin hood, one of the largest stock trading platforms in the world, made a move to unilaterally pause. All buys on gamestop stock for a day, but still allowed cells that is mind-blowingly outrageous and possibly the most extreme example of market manipulation that's potentially humanly possible to display other similar stock trading platforms did likewise let's, hear from The robin hood, ceo, try and attempt to explain that one to us some of your customers, vlad are enraged.
I mean they say you're, siding with wall street, that this is a crime one person even saying that you should go to jail. What is your response to that? So there's, a lot of misinformation out there in particular um there's, people saying that uh we were forced to do this by uh market makers.
We route to or other market participants - and i just want to come out and say that that's categorically false. We weren't uh. We weren't directed by a market maker or uh or any other market participant.
This was uh that's really weird. He should say that, because the ceo of weeble.com another place, you can trade stocks with directly contradicts this. Gamestop trading restrictions blamed on wall street's; clearing firm by online broker, the chief executive of popular online brokerage, weeble financial llc said thursday that the restrictions placed on trading, gamestop, corp and other high-flying stocks rested.
With the platform's. Clearing firm that helped streamline trades. So if you're unfamiliar robin hood, doesn't directly, do any trading for you. They root your activity to a clearinghouse for the actual selling and buying they're known as apex.
Clearing, corp and 95 of all trading activity goes through them. They front run your buys and sells, and they did forcibly stop trading. What this could equate to is a dealer at a roulette table taking the ball out as it's in mid-spin, because he didn't like where it was headed, but don't.
You worry, you are free to leave anytime, you want and he'll even give it back to you tomorrow. Someone get me the sec as much as we love that organization who continually rejects bitcoin etf applications for what was it again market manipulation good.
One they need to make it beyond clear that what these firms did was illegal. They did just put out a statement saying sec to review brokers, restrictions on gamestop amc trading security. Regulators said friday.
They plan to closely review the actions of some brokerage firms that restricted investors ability to trade, volatile stocks such as gamestop this week. Okay, that's, something i honestly don't know if they're gonna side with the wall street, guys and blame this all on a subreddit like i can so see them doing, that.
The reason that this is even a question, amazingly, is because the sec for their many years of operation has still not clearly defined what market manipulation is they say it's transactions which create an artificial price or maintain an artificial price for a tradable Security, what is artificial that is beyond vague to be nigh useless anyway.
What vlad is saying here? Is it wasn't, the clearinghouse, when, apparently it was? Is he trying to protect his business partners anyway? Let's. Continue a technical and operational uh decision that we made because robinhood as v as a brokerage has financial requirements uh, including clearinghouse deposits that we have to make to various clearing houses.
Some of these requirements fluctuate based on volatility in the markets and in this current, unprecedented environment. Um can be substantial so to protect the firm and protect our customers uh. We we temporarily disabled buying in these securities and we hope to re-enable buying uh as soon as tomorrow morning, so they're, protecting customers and themselves, not the suits by making sure that everything's.
Okay with clearing house deposits, i don't. I don't really understand that it rings quite hollow. The run-up in price was caused by retail. If it starts to go down it's, retail that loses and they created the perfect environment for losses to occur.
In fact, nothing else could happen. They they ensured that it would now. Your mission, vlad you've, always said, has been to to democratize markets and your brand is really important, and i wonder how concerned you are about a hit to your brand, because some would say you know if you're about democratizing Markets, why restrict trading at all? You look a lot more like perhaps the sheriff of nottingham playing dress up then robin hood himself: [ Music ] - that is a savage burn um.
So we we restricted buying uh temporarily, um. You know we we have to. We're, obviously all about access and anyway, that's enough from this corporate spokesperson, at the very same time that they paused buys but allowed cells.
The news broke that melvin capital, the institution who was naked, shorting gamestop the most and losing the most money by this price action even needing a bailout from their wall. Street friends has exited their short, which, if true, would take away the rocket fuel behind a further rally.
Wall street bets was counting on a further short squeeze here to send the stock to the moon, so this was a huge blow and it was reflected in the price action. Yet we are now up on gme up on amc. Why, according to is the squeeze squose that's, a real thing? The squeeze has not been squeezed.
Gme shorts have not begun to close their position in substantial numbers. The situation as of january 29th shows that short interest is anywhere from a huge 75 percent to over all the existing stock in the market at 113 percent.
Aka short naked short selling selling, what you don't actually own. How is this story, then? Of a 13 billion dollar hedge fund closing its position accepting huge losses. True, if it was, this should be reflected in the volume of options and yet isn't either way.
It looks like the ability to further squeeze these hedge funds from their short positions is very much still alive either way. If it's, not them, it looks like it's, someone else, and as long as the ability to force institutions to buy our bags looks to still be on the table.
Despite this bizarre piece of news, the attack on wall street looks set to continue, and i wish the retail community all the success in the world. It's, not like they don't deserve a win for once these people have constantly been abused by those in positions of power, and i've been caught, red-handed doing it yet again, and i just don't want them to get away with it anymore.
So why is this the ultimate advertisement for bitcoin? Do we get them yeah? No, but hopefully blockchain is the answer. Oh see, they said it. Hopefully, blockchain is the answer to that. That's. What we said we just said that in this live stream, too, blockchain would solve all of this bullcrap.
That makes me very bullish by the way on bitcoin today explained why bitcoin money? Well, it's, not just bitcoin, but all blockchain. The importance of decentralized exchanges like uni, swap where your orders are not front, run like with apex clearing corp that cannot pause, trades and is available to anyone with an internet connection is obviously important.
Ethereum is something that can be tokenized to represent shares of a company and traded on these platforms. Just like stocks is something we need to make happen, so we can stop getting abused by financial institutions.
Wealth inequality is bad and made so much worse when things like naked shorting is allowed by the elite and impossible for the average person, we need to take their power away. Nothing does it better than attacking their money.
Bitcoin has the power to undermine everything they're doing to people around the world. I'm. Sorry for shouting, but it just disgusts me what these people in government do and they do it through central banking and through the control of the money, supply and bitcoin, takes that away from them.
Gamestop is the battle, but bitcoin is the war. More people are starting to realize this. The wall street bets community has been spotted migrating over to the crypto subreddits and finally, finally, elon changes his bio from ceo of doge to simply bitcoin saying quote: it was inevitable: 258 million in bitcoin shorts immediately get liquidated, but it does beg the question.
Is he just talking about changing his twitter, bio or something else which ranges i'd, say all the way from decent, like being able to buy a tesla using bitcoin the payment processor likely converting it back into usd at moment of purchase all the Way over to insanely godlike amazing, the announcing that tesla is putting part of its cash reserve balance sheet into bitcoin, which would no doubt incite more companies to follow suit, no doubt pump tesla stock even more either way.
This is good for bitcoin. Thank you very much for watching leave a like if you enjoyed subscribe. If you haven't, i & # 39. Ll, see you on the next one.