DiamondHansGruber
0 DRS over 91 days
This is so fucking fishy.
Net zero change of tens of millions of shares across thousands of owners?
I’m not saying it’s impossible, just that I myself cannot shake my doubts that something is rotten here.
Thanks for posting this, very juicy, let’s dive in 💎 🤙
Tokenised stocks are an alternative to their traditional counterpart. In order for tokenised stocks to be a perfect substitute the price of tokenised stocks has to be perfectly correlated to the price of the traditional stock.
Okay, so tokenized stocks only function as a proxy when the prices are synced. Gotcha, this is the underlying assumption at play here.
The analysis is based on 20 randomly selected tokenised stocks with a varying market cap and liquidity.
Okay so they looked at tokenized stock from a random sampling.
Only two out of twenty tokens have correlations beneath this threshold, namely McDonalds Corporation and Gamestop Corporation with respective correlation coefficients of 0,79 and 0,93.
Alright, the good stuff. Of the tokenized stocks from the random sample, two of them deviate greatly from their peers with their correlation coefficient*. Which is stat slang for saying that the underlying assumption of “perfectly correlated” is quite imperfect with 70% for McDonald’s and 93% for GME.
Price discovery is quite blurry in that 7% spread, presumably to the benefit of market makers and HFT and at the expense of price discovery for actual investors. Eg you want to buy a token (for some reason), so your exchange charges you the price of the real stock then delivers you a token and pockets the difference.
The conclusion here is that the GME is a poor tokenized stock because the correlation coefficient is an abysmal 93%; the 7% variance in price discovery is fucking embarrassing for the SEC’s mandate** for maintaining fair, orderly, and efficient markets.
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*A correlation coefficient is a number between -1 and 1 that tells you the strength and direction of a relationship between variables. https://www.scribbr.com/statistics/correlation-coefficient/
Operational Efficiency is the term used to describe keeping plan shares at the DTCC despite being directly registered to a real owner (this is called the Directstock Plan).
- It is often likened to a heat lamp at a burger place; cooking burgers for orders that don’t yet exist.
- Similarly, Operational Efficiency is taking your [plan] shares for sell orders you haven’t made yet. 🤮
- For those aware of Trimbath’s work, leaving your shares in DTCC clutches is a guarantee they will be used as locates for net settlement of FTDs. 🤑
Operational Efficiency is anathema to our creed of owning our stocks by ourselves. The phantom shares and FTDs that shorts abuse to weaken our long positions are just further urgency to leave DTCC’s crooked broker system. 💎💪
Now in contrast, the alternative to Directstock Plan is DRS.
When shares are directly registered under DRS, there is no operational efficiency: burgers are made to order and actual stock is only moved when a real sale occurs. DTCC gets to cry and pound sand as we invest in the market without their oversight 💎👌
TLDR
- The broker system relies on repurposing their customers’ long positions as locates for their own short positions (see Naked, Short, and Greedy by Trimbath)
- When a DRS owner buys a share they are settled with an actual share
- When anyone else buys a share they get rehypothecated promise from DTCC to have the share available by the time you decide to you sell it; you never actually get the share.
More knowledgeable apes please feel free to add corrections or improvements here 💎✌️
Edit: corrections, thanks king 🍻
Re: locates. I apologize I’m trying to not actually connect those dots, I’m seek to use one to discredit the other:
- On one hand DTCC lets brokers fuck you with locates. This tells me the broker system cheats you, full stop. This is evident from Trimbath.
- On the other these same crooks have their hands on your shares under the guise of operational efficiency. This tells me that the crooks I seek to escape have their hands in my cookie jar. This is evident from Paul Conn’s YT statement and that SEC bullet point about how plan isn’t DRS.
- To be clear, I wish to say: given their behavior in the broker system, how can anyone trust them that Operational Efficiency is bona fide and not just another broker-style pretense for fuckery?
See you on the moon 💎💪💎💪🚀 🚀🚀🦍 🦍🦍🦍
This is great news for my holiday cheer 💎👌
Great history lesson, thank you. I ditched reddit for good after the API controversy, so many of these events are news to me.
For what it’s worth, the energy drew me here. I think this place has the best shot at getting a AIG/DAO off the ground 💎🤞
To my understanding, the ledger doesn’t reveal DTC tuckery. In the ledger you will find a one-liner to the effect that DTC has the rest of the shares.
To prove their fuckery we would need to see the DTC ledger, but it’s a private corporation above the law 🤮
Lucky for us, we can lock the float and they can’t stop us 💎💪
The wording feels like it went from crystal clarity to fuzzy math.
Q3 2021 through Q3 2022
X shares are directly registered.
Q4 2022 through Q3 2023
305,514,315 minus the n shares claimed by DTC therefore X shares are registered. All share counts are approximate.
Maybe if the DTC didn’t have such a history of malfeasance maybe I wouldn’t suspect them of malfeasance everytime something changes to their benefit 🤷♀️
Great write up, thanks apefam 💎👌
Nice, I was able to find it: https://ihsoyct.github.io/index.html?mode=submissions&subreddit=GME&sort_type=created_utc&sort=desc&limit=100&after=&before=&author=6days1week&score=&num_comments=&q=burger
There is also the DD library: https://online.fliphtml5.com/lvrgy/kqab/
And the internet archive: https://web.archive.org/web/20221214055223/https://old.reddit.com/r/GME/comments/zl8h75/why_drs_numbers_may_have_come_in_low_the_burger/
However, in a blow that’s shattering my goodwill toward the ape historian, his dashboard appears to have purged the heat lamp from the records.
- author: 6days1week
- time: 2022
- subreddit: GME
- or even post title: “Why DRS Numbers May Have Come In Low ~ The Burger Chain Heat Lamp Theory”
Just try these search params and prepare for disappointment: https://app.powerbi.com/view?r=eyJrIjoiMDljZTA3NGUtMjJiYS00YjQwLTk5MTktM2VlNWQ5ODViYjM5IiwidCI6IjI4YzVlNGJkLTVkNmMtNGI1OS1hMGU5LTBhMjQ0Mzk4OTNiZSJ9
Static DRS counts paired with massive volume spikes… I know it looks like DTC is doing a last minute switcharoo to satisfy reporting requirements but that would be highly illegal.
Surely there’s a mundane explanation for the constellation of weirdness that surrounds GME, it couldn’t be crime.
Remember when they fixed everything after the Big Short?
/s