Neovasc REDUCER-I Study Published in EuroIntervention Journal Neovasc announced the publication of an article entitled, Coronary sinus narrowing for the treatment of refractory angina: a multi-centre prospective open-label clinical study (the REDUCER-I study) in the September 2021 issue of the journal EuroIntervention Research, News & Market Data on Neovasc

Orion Group Holdings, Inc. Announces Contract Awards of Approximately $22 Million; Value Could Increase Orion Group Holdings announced three contract awards totaling approximately $22 million Research, News & Market Data on Orion Group Holdings Watch recent presentation from Orion Group Holdings

Allegiant Receives Final BLM Approval At Flagship Eastside Project, Increasing Permitted Area By 600% Allegiant Gold announced the receipt of two permits allowing for a significant expansion of drilling and operations at its Flagship Eastside Project Research, News & Market Data on Allegiant Gold Watch recent presentation from Allegiant Gold

FenixOro Drills 23.2 g/t Gold in Newly Discovered Cascada Vein, Significantly Increases Resource Potential on Northwest Corridor at Abriaqui Gold Deposit FenixOro Gold announced that final assays have been received for the first three holes Research, News & Market Data on FenixOro

Kratos Receives $3.2 Million Contract Award for Next Generation Small Engine Development for National Security Program Kratos Defense & Security Solutions announced that its Kratos Turbine Technologies (KTT) Business has recently received an approximate $3.2 million contract award for the development of a Next Generation small engine for a National Security Program Research, News & Market Data on Kratos

Genprex Strengthens Management Team with Appointments of Industry Leaders Mark S. Berger, M.D. as Chief Medical Officer and Hemant Kumar, Ph.D. as Chief Manufacturing and Technology Officer Genprex announced that the Company has strengthened its leadership team with the appointments of Mark S. Berger, M.D. to the newly-created position of Chief Medical Officer and Hemant Kumar, Ph.D., CPM, EMBA to the newly-created position of Chief Manufacturing and Technology Officer Research, News & Market Data on Genprex Watch recent presentation from Genprex

 

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Will SPACs Get Recharged on Polestar EV Merger?

 

Investment success always attracts increased interest to the investment type. It isn’t unusual for the type to then begin to attract more interest than practical given a finite world. If there is over-speculation, investors may then pull back their interest – over time the market and investors find a smart balance. At times the regulators interject their own leverage as well.

Last Year’s SPAC successes created a surge of new blank check SPAC IPOs into the first quarter of 2021. They were all seeking that “one-of-a-kind” must own target. Investors were at first caught up in the buzz, then the so-called blank check companies had digestion problems.  Electric car companies may have also become bloated around that time. It seemed that every week we learned of another EV start-up somewhere in the world. These companies are all vying to be the next great car company in a greener world. It isn’t likely the world is big enough for all of them to amass that kind of success.

 

20 Billion Reasons to Still Pay Attention to SPACs

SPAC managers Gores Guggenheim, Inc. may have demonstrated that there are still incredible companies to be found and merge with. Yesterday, shareholders of one of their SPACs woke up to learn they will have the option of owning a pro-rata share of a 6% stake in a car company that post-merger will be worth $20 billion. The proposed business combination was unanimously approved by both the Board of Directors of Gores Guggenheim and the Board of Directors of Polestar. It’s expected to close in the first half of 2022, subject to approval by Gores Guggenheim’s stockholders and other standard closing conditions.

 

Summarizing the Deal

The Nasdaq listed SPAC managed by Gores will be acquiring a portion of Polestar which is owned by Volvo Car Group and the chairman of Zhejiang Geely Holding Group Co. Actor Leonardo DiCaprio will also own a stake in the final deal (Volvo is currently a subsidiary of Geely). A combination with Gores Guggenheim Inc. first attempted in July, has now been set in motion. The SPAC’s shareholders, managers, and new external investors together will own an initial 6% stake, their contribution is $1.1 billion of cash. This is how the Gores website defined the transaction.

 

• Polestar is a global pure-play, premium electric vehicle (“EV”) company based in Sweden, with a mission to produce progressive, electric performance cars designed and engineered without compromise
• The transaction implies an enterprise value of approximately USD 20 billion
• Polestar currently has two award-winning cars in production and rapidly growing sales in 14 active markets across three continents
• Proceeds from the business combination are expected to be used to help fund significant investment in products and the expansion of operations and markets to create a leading company in the rapidly growing global premium EV market
• The transaction includes approximately USD 800 million of cash from Gores Guggenheim, Inc.’s trust account (subject to applicable stockholder redemption rights) and USD 250 million in cash from PIPE financing anchored by top-tier institutional investors
• Existing Polestar investors include Volvo Car Group and affiliates of Geely Chairman Eric Li, and actor and activist Leonardo DiCaprio, amongst others
• Polestar EVs are expected to be built in the Volvo South Carolina plant

 

Other SPAC News

SEC Chair Gensler spoke today (September 28) and worried aloud about the lack of definition, in some cases, around what SPACs can do with investors’ money. He noted how the structure incentivizes SPACs to find a merger deal “even if it’s not a particularly great merger”—potentially at the expense of the investors they are raising money from. The SEC has also recommended changes to accounting rules related to how SPAC investors are viewed relative to others involved.

 

Take-Away

The Polestar + Gores Guggenheim SPAC + Volvo + Leonardo DiCaprio business combination appears to have the potential to launch an EV manufacturer upward financially where they have the resources to design, build, and compete at a high level. This seems as though it meets or exceeds the objectives of all involved in this SPAC IPO through the expected merger.  The car company has the resources to grow much faster, and the investors are involved in a situation they may not have been offered otherwise.

Investors have been shying away from SPACs. Perhaps this will become the success that causes those that retrenched to regain interest and the SPAC market will attain a sustainable balance.

 

Suggested Reading:

Irrational Pessimism – Why Value Investors Should Research Individual SPACs

One Great Protection Inherent in SPACs for Investors

Regulation of a Special Purpose Acquisition Company

Analysis of a Special Purpose Acquisition Company

 

Sources:

https://www.gores.com/wp-content/uploads/2021/09/Press-Release-Polestar-Signs-Agreement-to-be-Publicly-Listed-Through-Combination-with-Gores-Guggenheim-Inc.pdf

https://www.bloomberg.com/news/articles/2021-09-13/china-has-too-many-electric-carmakers-m-a-to-be-encouraged

https://www.polestar.com/us/

https://www.barrons.com/articles/electric-vehicle-maker-polestar-in-talks-20-billion-spac-deal-51632735270?refsec=news

 

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Michael Burry is Tweeting About the Markets and His Subpoena

 

About three times a year, I click to re-follow Dr. Michael Burry’s Twitter account. This is because he deletes his account about three times a year after tweeting something that I suspect he regrets. Recently the hedge fund manager that shorted the mortgage market before the financial crisis of 2008 has been tweeting and deleting up a storm. The topics are GameStop (GME), and general market and economic perceptions.

Market Tweets

In a recent flurry of tweets, he wrote the current market boom reminds him of the dot-com bubble. He compared the options-trading frenzy to the rampant speculation that helped cause the Great Depression. These tweets have since been deleted, presumably by Burry.

Burry also repeated his expectations related to index investing that he first presented openly two years ago. That is, index funds are in a bubble of sorts as demand for weak companies is increased by the larger and stronger components, meanwhile, there is little fundamental analysis to investing in indexes as opposed to individual stocks.

Burry tweeted a link to a research paper dated June of 2021 about inelastic markets. The research demonstrated that the US stock market’s value rose by $5 for every $1 invested in it. The famous hedge fund manager that runs Scion Asset Management noted the majority of millennials use passive vehicles such as index funds to buy stocks. This could further stretch prices without proper evaluation. Burry wrote, “That 5:1 ratio will get much, much sillier in time,” adding that the imbalance is a “product of a paradigm.”

Again, related to the overall market, the hedge fund manager compared the bull market during the 15 years that lead to 2000 to the growth in valuations in stocks over the past 15 years. He highlighted a 94% correlation between the Nasdaq 100’s performance in each of those periods and a 95% correlation for the S&P 500 index.

Michael Burry warned that the US stock market is risky and accused the Federal Reserve of misleading investors.  He said he was not investing in America’s largest technology companies.

The Scion founder and investment officer drew a parallel between the surge in people trading options on meme stocks and the widespread speculation that preceded the Wall Street Crash of 1929. He showed parallels to an article about the options mania with a quote by a statistician named Leroy Peavey in November 1929. Peavey blamed the market crash that year on a wave of leveraged speculation that pulled in “elevator boys, typewriter girls, and even schoolchildren.”

 

GameStop Tweet

While best known for his market shorts and portrayal in the book/movie The Big
Short,  he also was instrumental in bringing to light the potential of the GameStop short squeeze, which set off trading activity that caught many professionals off-guard. Related to recent events related to his investigations surrounding meme stock trading, Burry wrote, “So, who got an SEC subpoena over $GME? Actually, I know who, they’re on my subpoena. With all that’s going on in the world…” Burry tweeted in a now-deleted post on Friday. He attached a copy of the SEC letter dated Sept. 21. 

The hedge fund manager had been trading GameStop shares and publicly commenting on the meme stock for the past few years. At the end of 2018, Burry first revealed a $6.8 million position in the video game retailer. In 2019 he told Barron’s that new consoles from Microsoft and Sony would “extend GameStop’s life significantly,” which fueled a rally in the shares. However, when the massive GameStop short squeeze shocked Wall Street in January, Burry turned into a vocal critic of the stock, saying the trading in GameStop is “unnatural, insane, and dangerous” and there should be “legal and regulatory repercussions.”

 

Take-Away

Burry has been sounding alarm bells over Twitter and in interviews with Bloomberg for a couple of years. He’s warned of overvalued stocks dragged up by investors investing in market indexes rather than individually selecting stocks, he’s highlighted unsustainable levels of speculation in meme stocks, cryptocurrencies, and other assets and suggested it could lead to the “mother of all crashes.”

 

Paul
Hoffman

Managing Editor, Channelchek

 

Suggested Reading:

Michael Burry vs Cathie Wood is Not an Even Competition

Is the Index Bubble Michael Burry Warned About Still Looming?

Should Investors Listen to Influencers?

You Can Own a Piece of r/wallstreetbets

 

 

Sources:

https://twitter.com/MichaelJBurryMD

https://www.barrons.com/articles/big-short-investor-michal-burry-is-now-long-gamestop-51566424832

https://markets.businessinsider.com/news/stocks/big-short-michael-burry-warns-stocks-options-dotcom-bubble-crash-2021-9#:~:text=Michael%20Burry%20said%20the%20current,Invest%20as%20of%20June%2030.

https://www.nber.org/papers/w28967

https://www.cnbc.com/2021/01/27/hedge-fund-targeted-by-reddit-board-melvin-capital-closed-out-of-gamestop-short-position-tuesday.html

 

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Michael Burry is Tweeting About the Markets and His Subpoena

 

About three times a year, I click to re-follow Dr. Michael Burry’s Twitter account. This is because he deletes his account about three times a year after tweeting something that I suspect he regrets. Recently the hedge fund manager that shorted the mortgage market before the financial crisis of 2008 has been tweeting and deleting up a storm. The topics are GameStop (GME), and general market and economic perceptions.

Market Tweets

In a recent flurry of tweets, he wrote the current market boom reminds him of the dot-com bubble. He compared the options-trading frenzy to the rampant speculation that helped cause the Great Depression. These tweets have since been deleted, presumably by Burry.

Burry also repeated his expectations related to index investing that he first presented openly two years ago. That is, index funds are in a bubble of sorts as demand for weak companies is increased by the larger and stronger components, meanwhile, there is little fundamental analysis to investing in indexes as opposed to individual stocks.

Burry tweeted a link to a research paper dated June of 2021 about inelastic markets. The research demonstrated that the US stock market’s value rose by $5 for every $1 invested in it. The famous hedge fund manager that runs Scion Asset Management noted the majority of millennials use passive vehicles such as index funds to buy stocks. This could further stretch prices without proper evaluation. Burry wrote, “That 5:1 ratio will get much, much sillier in time,” adding that the imbalance is a “product of a paradigm.”

Again, related to the overall market, the hedge fund manager compared the bull market during the 15 years that lead to 2000 to the growth in valuations in stocks over the past 15 years. He highlighted a 94% correlation between the Nasdaq 100’s performance in each of those periods and a 95% correlation for the S&P 500 index.

Michael Burry warned that the US stock market is risky and accused the Federal Reserve of misleading investors.  He said he was not investing in America’s largest technology companies.

The Scion founder and investment officer drew a parallel between the surge in people trading options on meme stocks and the widespread speculation that preceded the Wall Street Crash of 1929. He showed parallels to an article about the options mania with a quote by a statistician named Leroy Peavey in November 1929. Peavey blamed the market crash that year on a wave of leveraged speculation that pulled in “elevator boys, typewriter girls, and even schoolchildren.”

 

GameStop Tweet

While best known for his market shorts and portrayal in the book/movie The Big
Short,  he also was instrumental in bringing to light the potential of the GameStop short squeeze, which set off trading activity that caught many professionals off-guard. Related to recent events related to his investigations surrounding meme stock trading, Burry wrote, “So, who got an SEC subpoena over $GME? Actually, I know who, they’re on my subpoena. With all that’s going on in the world…” Burry tweeted in a now-deleted post on Friday. He attached a copy of the SEC letter dated Sept. 21. 

The hedge fund manager had been trading GameStop shares and publicly commenting on the meme stock for the past few years. At the end of 2018, Burry first revealed a $6.8 million position in the video game retailer. In 2019 he told Barron’s that new consoles from Microsoft and Sony would “extend GameStop’s life significantly,” which fueled a rally in the shares. However, when the massive GameStop short squeeze shocked Wall Street in January, Burry turned into a vocal critic of the stock, saying the trading in GameStop is “unnatural, insane, and dangerous” and there should be “legal and regulatory repercussions.”

 

Take-Away

Burry has been sounding alarm bells over Twitter and in interviews with Bloomberg for a couple of years. He’s warned of overvalued stocks dragged up by investors investing in market indexes rather than individually selecting stocks, he’s highlighted unsustainable levels of speculation in meme stocks, cryptocurrencies, and other assets and suggested it could lead to the “mother of all crashes.”

 

Paul
Hoffman

Managing Editor, Channelchek

 

Suggested Reading:

Michael Burry vs Cathie Wood is Not an Even Competition

Is the Index Bubble Michael Burry Warned About Still Looming?

Should Investors Listen to Influencers?

You Can Own a Piece of r/wallstreetbets

 

 

Sources:

https://twitter.com/MichaelJBurryMD

https://www.barrons.com/articles/big-short-investor-michal-burry-is-now-long-gamestop-51566424832

https://markets.businessinsider.com/news/stocks/big-short-michael-burry-warns-stocks-options-dotcom-bubble-crash-2021-9#:~:text=Michael%20Burry%20said%20the%20current,Invest%20as%20of%20June%2030.

https://www.nber.org/papers/w28967

https://www.cnbc.com/2021/01/27/hedge-fund-targeted-by-reddit-board-melvin-capital-closed-out-of-gamestop-short-position-tuesday.html

 

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	Image Credit: Jurrasic Blueberries (Flickr)

The Synergistic Effects of Crypto on Cannabis Businesses

 

The rapid changes in both cryptocurrency acceptance and marijuana acceptance have been mind-numbingly quick over the past two years. Both still have legal and regulatory hurdles preventing adoption and usage without pitfalls and landmines for the businesses or users. Interestingly, some of these trouble spots can be more easily overcome by transacting in cryptocurrency.

A Pitfall for Marijuana Businesses

The business of selling psychoactive cannabis products, whether for medical use or recreational, is against federal law. Banks are federally regulated, which is why they resist providing services in a way that would be a key component to a federal offense. This prevents many traditional financial arrangements between suppliers and customers of these businesses. Imagine being a thriving business not able to go to the bank for a loan to finance inventory or expand. Perhaps more serious is the safety of employees as all-cash businesses are targets for crime – at times a deadly crime.

A Pitfall of Cryptocurrencies

Price volatility, tied to a lack of inherent value, is a problem for digital currencies not tied to the value of anything specific. It’s an important concern, but one that can be overcome by linking currency to a more standard measure. Gold, silver, and oil have been used in the past to back paper currency. Standard units with more stable values can help support and stabilize cryptos.

Synergies and Interactions

The problem of safety and non-cash transactions for marijuana, and the beneficial impact of coupling a measurable and largely standardized product to a digital coin has lead to the development of marijuana-specific virtual currencies. Cryptocurrencies can provide an easier path than $USD for people in the marijuana industry. A digital currency can also make it easier for consumer transactions. As far as a budtender leaving the dispensary to make a cash deposit, this can be done electronically with a cryptocurrency, eliminating that safety concern.

There are a few coins specific to the cannabis business, each with different traits. Outlined below are four with readily available information available related to their usage.  

CannabisCoin (CANN.x) has been active since 2014. The architecture is a proof-of-work, peer-to-peer open-source currency aimed at easing transactions for medical marijuana dispensaries.

Functionally, CANN.x pledges to convert cryptocurrency directly into marijuana. Under the name CANNdy, there is a line of medicines and marijuana strains grown for the specific purpose of exchange at the rate of 1 CannabisCoin to 1 gram of medication.

 The total supply of CannabisCoin is set at 91.8 million, with over 77 million in circulation. The currency’s value in circulation was $1.30m as of September 24, 2021, according to Coinbase.

DopeCoin (DOPE.x) founded by a man whose nickname is Dopey, has been active since 2014. This currency is more private, so far less is known about the specific markets the currency serves except that its “mission is to provide marijuana enthusiasts with a modern and secure way of doing business for the 21st century.”

According to its website, DOPE.x users can transact pseudo-anonymously in under a minute and don’t pay any fees or transaction costs.

DopeCoin supply is limited, with about 117 million units in circulation. It is also a proof-of-stake currency, giving investors a chance to earn 5% in annual interest. The currency has a value in circulation of $299.5k as of September 24, according to Coinbase.

HempCoin (THC.x) also came into existence in 2014, although its focus is less on individuals using it to buy product. Instead, this cryptocurrency is intended for use by the farming industry and medical and recreational dispensaries. The THC.x website says its goal is to “help facilitate secure transactional relationships between farmers, distributors, and consumers.”

HempCoin has been used in all areas of agriculture, not just those involving marijuana. As of September 24, the price for one HempCoin was $0.0102, and its value in circulation was $2.7m.

PotCoin (POT.x) launched in January 2014 and was one of the earliest cryptocurrencies for the marijuana industry. It was designed to solve banking problems for people looking to transact in legal marijuana. Trading of PotCoin is direct between people; there is no exchange or clearinghouse. The creators wanted to capitalize on Colorado’s legalization of marijuana and went as far as installing a PotCoin automated teller machine (ATM) at a dispensary in Colorado.

The currency got off to a very sluggish start but became known and more popular when in June 12, 2017. A press release and a video of former NBA star Dennis Rodman wearing a PotCoin.com T-shirt in North Korea provided PotCoin popularity and recognition. They funded Rodman’s trip, which may have paid off as the MJ-based crypto value approximately doubled in just one day.

As of September 24, its value in circulation was about $3.8 million—a big jump from $81,547 at the start of February 2014. One PotCoin was worth $0.0167 on September 24. The coin is up about 70% year-to-date.

The supply of PotCoin is limited to 420 million coins. More than 226 million are in circulation. It trades on three markets and is proof-of-stake, which allows people to mine or validate block transactions according to the number of coins they hold. An important differentiator, PotCoin claims transaction speeds of 40 seconds.

Take-Away

The challenges for blockchain-derived cryptocurrencies and those inherent in marijuana transactions have brought the two industries together to find solutions. Some of these have been in practice for seven years with mixed results.

Until a softening of federal regulations around marijuana occur, crypto is one solution to one of the pitfalls of the business. For digital currencies that derive value from the units of cannabis they can purchase, there is a set range of volatility when tied to a product that is becoming more and more standardized. This is why for the past seven years, MJ-based businesses and consumers can use marijuana-specific cryptocurrencies to transact and get around some banking issues.

 

Suggested Reading:

Severe Punishment for All Things Crypto in China -Who’s Impacted?

Will Federal Law Surrounding Cannabis be Changed?

Apple’s Marijuana Decision Will Lead to Many Critical Decisions for Investors

Cannabis Customers Served by the Ice Cream Truck Delivery Model

 

 

Sources:

https://www.prescouter.com/2019/11/disadvantages-of-cryptocurrencies/

https://thecancoin.com/

https://www.prescouter.com/2017/11/next-generation-cryptocurrencies/

https://www.potcoin.com/

https://dopecoin.com/

https://hempcoin.org/

https://www.youtube.com/watch?v=pOo2S7zM2rM

www.Potcoin.com

 

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Onconova Therapeutics, Inc. Announces Pricing Of $21 Million Public Offering Of Common Stock Onconova Therapeutics announced the pricing of an underwritten public offering of 5,000,000 shares of its common stock at a public offering price of $4.20 per share Research, News & Market Data on Onconova Watch recent presentation from Onconova

Item 9 Labs Corp.’s Dispensary Franchise Expands NE Footprint into 2 New States Item 9 Labs announced continued development of its cannabis dispensary franchise brand, Unity Rd., across the Northeastern United States Research, News & Market Data on Item 9 Labs

 

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	Image Credit: Marco Verch (Flickr)

Severe Punishment for All Things Crypto in China -Who’s Impacted?

 

Who is impacted by the Chinese announcing the crackdown on all things related to cryptocurrency under their jurisdiction? Ten agencies undersigned the announcement, including law enforcement, the central bank, securities and foreign exchange regulators. The impact extends far beyond the speculative crypto investor within the country.

The alternative or virtual currencies have been going through a period of weakness leading up to today’s announcement. But this news had a particularly strong impact causing Bitcoin to be down 4.50%, Ethereum down 7.70%, and Solana down 6.20%. However, the long-term impact on these coins may be positive. Although fewer are allowed to legally buy, hold, and trade cryptocurrencies, new crypto entering the broader market could be reduced considerably if the Chinese agencies’ crackdowns are successful. Determination for success seems high as the National Development and Reform Council (NDRC) said it would launch a nationwide crackdown on cryptocurrency mining as it works to cripple the sector entirely.

This could place upward pressure on currencies such as Bitcoin, where a large percentage was mined in the country. It also comes at a time when there are more long-term holders of digital currency, which reduces currency in circulation. This reduced supply coming onto the market could only play out if China is able to find and prevent mining activity.

 

Distribution of Bitcoin Mining Hashrate from
September 2019 to April 2021, by Country

 

Exchanges and over-the-counter (OTC) services that were still available this week, including Huobi, OKEx and Binance, allowed Chinese users to exchange their fiat yuan into crypto assets to participate in crypto trading activities. These services, whether in China or offshore, are to cease operations. The People’s Bank of China (PBoC) said individuals who live inside China but work for overseas crypto exchanges that making crypto trading available in China are also subject to legal prosecution. It’s clear from the announcement that Huobi, OKEx, and Binance will need to discontinue their OTC services.

Cryptocurrency derivatives such as futures trading are also illegal. This is likely to extend to all other contracts and trust situations such as ETFs created using either derivative contracts or virtual currency.

 

Chinese Crypto Chronicle

The bullet points below are a timeline showing how over eight years the Chinese government moved from allowing cryptocurrencies to trade freely, with no restrictions on participation, to where we are today with a defined no tolerance policy.

• In 2013, the government defined bitcoin as a virtual commodity. Individuals were allowed to freely participate in its online trade.
• Later in 2013that year the PBoC and other financial regulators banned banks and payment companies from providing bitcoin-related services.
• In late 2017, China banned initial coin offerings (ICOs) in order to “protect” investors and curb financial risks.
• Also, late 2017 ICO rules banned cryptocurrency trading platforms from converting legal tender (Yuan) into cryptocurrencies or crypto into yuan.
• During 2017, most crypto exchange platforms shut down or moved offshore.
• By July 2018, 88 digital currency trading platforms and 85 ICO platforms had withdrawn from the Chinese market.

Take-Away

The escalating crackdown on all things related to cryptocurrency seems to have peaked as ten agencies of the country are working to put a lid on non-government-sponsored digital currency. It isn’t clear how those within the country that are currently holding cryptocurrency will be able to cash out if they want to, these assets may be forever taken off the market. Additionally, a reduction in mining in a country that contributed greatly to new Bitcoin being created may have a longer-term bullish impact on the exchange rate of $USDF to BTC. This could impact many other coins as they tend to trade as a group and because Bitcoin isn’t the only currency mined in China.

Suggested Reading:

You Can Own a Piece of r/wallstreetbets

The Future of Cryptocurrency

Will Federal Law Surrounding Cannabis be Changed?

Debt Limit Debate’s Impact on Stocks and U.S. Credit Ratings

 

Sources:

https://www.reuters.com/business/bitcoin-slides-below-40000-ether-tumbles-2021-05-19/

https://www.theblockcrypto.com/linked/118581/china-issues-tougher-measures-to-keep-cracking-down-on-crypto-trading

https://www.pymnts.com/cryptocurrency/2021/china-declares-all-cryptocurrency-related-transactions-illegal/

https://www.reuters.com/article/crypto-currency-china-explainer-idUSKBN2GK1FO

https://www.shine.cn/biz/economy/2109245518/

 

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Wall Street Bets Meets Blockchain – Can Diamond Hands Extend to “Rare” Art?

 

In an amusing press release, it was announced yesterday the founder of WallStreetBets, in conjunction with a newly formed partnership, would be offering “Diamond Hands” non-fungible tokens. The subreddit forum, r/wallstreetbets, is known for its ability to leverage its following to communicate and mobilize that strength.  Its collective market-moving power has been able to upend large institutional investors and traders.  For example, as a group, the subreddit is credited with successfully creating the short squeeze in GameStop (GME) and AMC (AMC) stocks early this year.

WSB founder, Jaime Rogozinski is now in a strategic partnership forming a new entity called WSBDapp or Wall Street Bets Dapp. The thought process and NFT offerings was described in the release this way:

“The WallStreetBets community has been giving out memes for free for too long; Apple should be paying everyone royalties for rocket and diamond emojis at this point. That’s why we brought together a global team of artists, builders, DeFi pioneers, and blockchain fanatics to develop an NFT experience that combines the culture and creativity the community has shown over the last year,” said Jaime Rogozinski, founder of WSB and strategic partner of the WSBDApp project. “We’re proud to introduce the Diamond Hands Pass NFT collection as we enter new frontiers in DeFi and create offerings that can help regular people own their financial futures. And cool art.”

The WallStreetBets genesis Diamond Hands NFT unlocks a suite of benefits and utility into the future. And as the name suggests, the longer you hold, the greater you benefit. There are 15,000 handcrafted genesis NFTs up for grabs, each with unique qualities and some with desirable rarities. In the interest of fairness, WSB is introducing a 30,000 raffle ticket system that allows participants to mint up to five raffle tickets per wallet. Once all tickets have been sold or the minting window closes, the draw will be chosen randomly by a computerized selection process. All non-winning raffle tickets will be refunded.

WSB NFT Stats:

• 30,000 NFT raffle tickets
• 15,000 Diamond Hands Pass NFTs
• 153 unique artwork traits
• 40,600,560 unique possibilities

 

Each Diamond Hands NFT is a piece of handcrafted generative art, with traits of varying rarity and uniqueness. In addition to becoming a purveyor of the fine arts, Diamond Hands Pass owners will gain access to a members-only Discord room, voting privileges, exclusive events and opportunities to connect with like-minded individuals. Other benefits may include WSB merchandise, exclusive access to upcoming launches, rare metaverse wearables, enhanced yield farming rewards on BSC, and premium access to WallStreetBets events.

Diamond Hands Passes will also claim all generative collections for free, plus gas, indefinitely. This includes all three upcoming generative avatar drops: bulls, bears and apes. Collect and hold these three NFTs along with your Diamond Hands Pass to complete the Master Challenge. This will unlock exclusive rewards, including farming rewards at yields that boomers will say are impossibly lucrative.

 

Take-Away

Wall Street Bets was founded in 2012 to take on the big guys on Wall Street. It became so big that the founder, businessman, and author became uncomfortable that it lost its way toward the original goal. He separated himself years ago as his original intent was to work against those that “abuse” power.

Still, Jaime Rogozinski, at 39, likes to stay active in new technology and challenges. Also, he is not opposed to making money while providing value. Thus, he is a key part of the partnership forming WSBDapp-Diamond Hands. For more information on the WallStreetBets NFT collection and how to enter the raffle to achieve a Diamond Hands Pass, visit wsbcollectibles.io.

 

Suggested Reading:

Facebook’s “Supreme Court” to Rule on Favoritism of Elite Users

Is Coinbase Planning to “School” the SEC on Cryptocurrencies?

Tickets and Concessions Using Your Cryptocurrency Wallet at AMC Theaters

Understanding the Robinhood Class Action Lawsuit

 

Sources:

https://www.businesswire.com/news/home/20210922005352/en/WallStreetBets-Launches-NFT-Collection

https://millionsofcelebs.com/jaime-rogozinski-net-worth-age-height-weight-early-life-career-dating-bio-facts/

https://www.kitco.com/news/video/show/Market-Analysis/3584/2021-08-27/A-WallStreetBets-portfolio-Founder-Jaime-Rogozinski-launches-fund-where-investors-pick-the-stocks

https://twitter.com/wallstreetbets/status/1437883202962661376/photo/1

 

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Wall Street Bets Meets Blockchain – Can Diamond Hands Extend to “Rare” Art?

 

In an amusing press release, it was announced yesterday the founder of WallStreetBets, in conjunction with a newly formed partnership, would be offering “Diamond Hands” non-fungible tokens. The subreddit forum, r/wallstreetbets, is known for its ability to leverage its following to communicate and mobilize that strength.  Its collective market-moving power has been able to upend large institutional investors and traders.  For example, as a group, the subreddit is credited with successfully creating the short squeeze in GameStop (GME) and AMC (AMC) stocks early this year.

WSB founder, Jaime Rogozinski is now in a strategic partnership forming a new entity called WSBDapp or Wall Street Bets Dapp. The thought process and NFT offerings was described in the release this way:

“The WallStreetBets community has been giving out memes for free for too long; Apple should be paying everyone royalties for rocket and diamond emojis at this point. That’s why we brought together a global team of artists, builders, DeFi pioneers, and blockchain fanatics to develop an NFT experience that combines the culture and creativity the community has shown over the last year,” said Jaime Rogozinski, founder of WSB and strategic partner of the WSBDApp project. “We’re proud to introduce the Diamond Hands Pass NFT collection as we enter new frontiers in DeFi and create offerings that can help regular people own their financial futures. And cool art.”

The WallStreetBets genesis Diamond Hands NFT unlocks a suite of benefits and utility into the future. And as the name suggests, the longer you hold, the greater you benefit. There are 15,000 handcrafted genesis NFTs up for grabs, each with unique qualities and some with desirable rarities. In the interest of fairness, WSB is introducing a 30,000 raffle ticket system that allows participants to mint up to five raffle tickets per wallet. Once all tickets have been sold or the minting window closes, the draw will be chosen randomly by a computerized selection process. All non-winning raffle tickets will be refunded.

WSB NFT Stats:

• 30,000 NFT raffle tickets
• 15,000 Diamond Hands Pass NFTs
• 153 unique artwork traits
• 40,600,560 unique possibilities

 

Each Diamond Hands NFT is a piece of handcrafted generative art, with traits of varying rarity and uniqueness. In addition to becoming a purveyor of the fine arts, Diamond Hands Pass owners will gain access to a members-only Discord room, voting privileges, exclusive events and opportunities to connect with like-minded individuals. Other benefits may include WSB merchandise, exclusive access to upcoming launches, rare metaverse wearables, enhanced yield farming rewards on BSC, and premium access to WallStreetBets events.

Diamond Hands Passes will also claim all generative collections for free, plus gas, indefinitely. This includes all three upcoming generative avatar drops: bulls, bears and apes. Collect and hold these three NFTs along with your Diamond Hands Pass to complete the Master Challenge. This will unlock exclusive rewards, including farming rewards at yields that boomers will say are impossibly lucrative.

 

Take-Away

Wall Street Bets was founded in 2012 to take on the big guys on Wall Street. It became so big that the founder, businessman, and author became uncomfortable that it lost its way toward the original goal. He separated himself years ago as his original intent was to work against those that “abuse” power.

Still, Jaime Rogozinski, at 39, likes to stay active in new technology and challenges. Also, he is not opposed to making money while providing value. Thus, he is a key part of the partnership forming WSBDapp-Diamond Hands. For more information on the WallStreetBets NFT collection and how to enter the raffle to achieve a Diamond Hands Pass, visit wsbcollectibles.io.

 

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Facebook’s “Supreme Court” to Rule on Favoritism of Elite Users

Is Coinbase Planning to “School” the SEC on Cryptocurrencies?

Tickets and Concessions Using Your Cryptocurrency Wallet at AMC Theaters

Understanding the Robinhood Class Action Lawsuit

 

Sources:

https://www.businesswire.com/news/home/20210922005352/en/WallStreetBets-Launches-NFT-Collection

https://millionsofcelebs.com/jaime-rogozinski-net-worth-age-height-weight-early-life-career-dating-bio-facts/

https://www.kitco.com/news/video/show/Market-Analysis/3584/2021-08-27/A-WallStreetBets-portfolio-Founder-Jaime-Rogozinski-launches-fund-where-investors-pick-the-stocks

https://twitter.com/wallstreetbets/status/1437883202962661376/photo/1

 

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	Image Credit: Alesia Kozik (Pexels)

Is Coinbase Planning to “School” the SEC on Cryptocurrencies?

 

The largest cryptocurrency exchange in the U.S. is going on the offensive. Earlier this month, Coinbase was notified by the SEC it would sue the crypto exchange if it moved forward with a plan to provide users interest on crypto assets. Coinbase ($COIN) is now preparing to propose a regulatory framework for digital currency oversight to federal officials. It is likely to contain definitions as to where various coins fall in the spectrum of whether a coin-based asset is a security, currency, or something else. This is after Coinbase’s Chief Legal Officer, Paul Grewal, and CEO, Brian Armstrong, said the SEC had sent a Wells Notice to the exchange. The notice received in early September said it had concluded an investigation on the company and would sue Coinbase if it were to go forward with its plans.

 

SEC
Specific Findings

In determining whether or not Coinbase’s Lend program would violate securities laws, the SEC referred to two U.S Supreme Court precedents. The Howey case and the Reves case were the two cited.  The full contents of the Wells Notice have not been made public, but it’s believed the SEC views cryptocurrency as securities, making the Lend program akin to securities lending much like stock lending or bond lending. Both stocks and bonds fall under the definition of securities and the lending and rebates rates are regulated transactions.

Coinbase History

Coinbase was a founding member of the Crypto Rating Council (CRC), which was created in 2019 to create a shared understanding of how closely any given cryptocurrency resembled a security. This framework was designed to standardize how exchanges approach crypto listings and products within the U.S. The Crypto Rating Council rated each coin from 1 to 5. A score of 1 referred to a currency that is not a security. A score of 5 indicated that a crypto-coin is a security. The CRC has not given a 5 rating to any coins.

This ratings initiative and scorecard were designed to be used by developers for future projects for evaluation and design. Coinbase published as open-source the technical framework for crypto developers last year. The idea was that projects that adopted the framework could ensure their cryptocurrencies would be technically suitable for Coinbase trading if approved for the platform.

SEC Crypto History

The U.S. Securities and Exchange Commission has been reviewing cryptocurrencies in order to develop a framework that protects investors and promotes fairness for those transacting in securities. Many still question whether cryptocurrency should be under its umbrella at all. The SEC Chair, Gary Gensler taught courses at MIT related to cryptocurrencies. In a YouTube video class from the Fall of 2018, Professor Gensler can be heard defining currency as having the following characteristics: Durable, Portable, Divisible, and Uniform/Fungible. Perhaps this class given at a prestigious school by the now SEC head will be included in the “schooling” Coinbase uses to propose regulatory standards.

Take-Away

Coinbase promoted its Lend as a means for investors to earn interest on their crypto holdings. Before implementation, the Securities and Exchange Commission warned that it would sue Coinbase if it went ahead with the plan. Coinbase is taking a proactive stance in laying out what it believes the appropriate regulatory framework would look like. This is expected to be released shortly. In the interim, cryptocurrencies and those active in the asset class are faced with much uncertainty.

One investor of innovation, Cathie Wood purchased 65,612 shares of Coinbase on Tuesday (September 21) for the
ARK
Innovation ETF (ARKK) she oversees. ARKK holds 4,254,756 shares of Coinbase in its portfolio with a market value of more than $1.01 billion.

 

 

 

Suggested Reading:

The Wells Notice to Coinbase May be the Tip of the Iceberg

Is Interest Paid on Crypto Holdings and SEC Violation?

AMC Theaters Now Accepts 4 Cryptocurrencies

What’s the Timeline for a U.S. Digital Currency?

 

Sources:

https://www.barrons.com/articles/coinbase-coin-crypto-regulatory-framework-51632305877?mod=hp_DAY_3

https://twitter.com/brian_armstrong/status/1435439291715358721?lang=en

https://www.banklesstimes.com/2021/09/22/coinbase-to-propose-crypto-regulations-to-u-s-officials/

 

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