Retail Investors Demand A Synthetic Shares Investigation

Retail Investors Demand A Synthetics Share Investigation
Investigating synthetic shares in AMC Entertainment stock

Retail investors are demanding for a synthetic shares investigation in regards to the heavily shorted stocks, AMC and GameStop.

With millions of failure-to-delivers in both these stocks, demand within the ‘ape’ community is growing for a synthetics share count.

The SEC must intervene to ensure the integrity of the market stays intact.

While Gensler has made it clear to the mainstream media his team is looking into hedge funds, retail investors now look towards the competence of the SEC.

The community is now eyeing undisclosed synthetic shares in the market.

franknez.com

Welcome to Franknez.com – the blog that protects retail investors and fights for financial market transparency.

Let’s get started!

The SEC Proves To Be Implicit

SEC Gary Gensler Synthetic shares

As far as actions prove, the SEC has had no success in making honest change in the markets.

I have personally given Gary Gensler the benefit of the doubt for quite some time now, as other influencers in the community have.

However, the SEC is another entity retail investors have been looking into.

In order to address the issues surrounding synthetic shares, retail investors are now looking within.

And this has the potential to get big.

A Tokenized Dividend Could Force Shorts To Cover

tokenized AMC NFT synthetic shares
Tokenized AMC NFT

Marc Cohodes is pitching a proposal to AMC Entertainment’s CEO Adam Aron to offer a dividend to its shareholders in a T-0 platform.

Founded by Patrick Byrnes, a T-0 platform would allow this dividend to trade in a legal lit exchange.

The premise of this strategy is to expose naked shares/synthetics by seeing how many shares aren’t accounted for in the NFT/token.

Now, Patrick Byrnes was the former CEO of Overstock and he did something like this where it actually squeezed the shorts.

In this FOX Business video, Charles Gasparino and Liz touch on the subject.

“This could be the same thing where you get a short squeeze coming out of this”, says Charles Gasparino.

Marc Cohodes will be meeting with Charles and Liz next Tuesday to discuss this tokenized NFT proposition.

And although it’s only a proposition and Adam Aron has not confirmed any plans to move forward, it’s a start to identifying how many synthetic shares are out there.

I’m also very well aware that not everyone in the community is fond of Marc Cohodes.

After all, he’s been a short seller most of his career.

However, a squeeze is imminent if Adam Aron approves this tokenized dividend.

Lenders will want to collect this dividend and the only way they will be able to do so is by requesting their shares back from borrowers.

Overstock Short Squeeze Timeline

Overstock Short Squeeze Timeline
OSTK Short Squeeze Timeline, Source

Overstock was worth approximately $5 per share when it approved the dividend.

One month later it jumped up to around $14 during the distribution period.

After two months of price growth, the company announced their earnings call and the stock squeezed past $120 per share.

Can AMC Entertainment see something similar?

Absolutely.

The only difference is the squeeze would be much more aggressive.

Read: AMC short squeeze price: Expectations vs reality

Will Adam Aron Approve A Tokenized Dividend?

will adam aron approve a tokenized dividend to identify synthetic shares

If Adam Aron approves a tokenized dividend, it would swell AMC’s share price and could potentially lead to a short squeeze like we saw with Overstock.

Adam Aron has not commented on the proposal yet.

Be sure to subscribe to the blog to receive updates on this developing story.

I’d love to hear your thoughts.

What do you think about Marc Cohodes’ proposal?

Are you for it or against it?

Leave a comment below.

Final Thoughts

franknez.com

AMC Entertainment has been a massive subject to market manipulation.

Regulators have dragged finding solutions to protect retail investors against dark pool trading, naked shorting, and off-exchange trading.

The fight for a fair market continues and it’s going to take every single one of us to make change happen.

We must show up every day and demand change in the market.

A proper MOASS will require the number of synthetic shares to be identified and covered.

This is the era of the apes.

franknez.com

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You can view my stock and crypto purchases on the Patreon 🎉.

Related: Will AMC Entertainment squeeze this year?


10 Comments

  1. CLam

    I am “for”.

  2. Ian Faulkner

    I believe an nft would be the only way to truly get the full potential of the squeeze, as well the best way to bring penalty/justice to these abusive naked shorting practices. We are the future of investing whether they like it or not. The Ape Nation is not leaving!

    Also an AMC crypto would be awesome and fitting! Let’s go AA!

  3. Moto

    An AMC crypto im rooting to happen aswell, that will be a fan favorite among AMC investors, especially if we somehow emget exclusive ICO access or something, and it will attract probably a nice chunk of crypto-only investors, the coin will gain alot of value quick, and probably substain a nice price due to the hype and actual utility, abd make AMC alot of money on paper in the process.

    • Frank Nez

      I agree ☝️🍿💯 – an actual cryptocurrency would be pretty awesome

  4. Matt

    I personally like the idea of course skeptical in regards to the timeframe of this coming out. The assperino switch up was concerning as well; sort of a red flag….but there were lawyers to get involved so CYA might have lead to that. I am curious if the MM learned a way to short a stock through a dividend similar to ETFs as there is some connections to the shares. It’s been 10 months couldn’t hurt to to ask the question of an STO, I would like to see what AA and his legal team has to say about this.

    • Frank Nez

      Curious to hear what Adam Aron has to say about this as well 🤔

    • Andre

      Wenn AA zu den Apes steht wird es es einführen wollen. Solle er dagegen sein könnte die Stimmung kippen.
      Ich bin klar dafür

  5. Scott Blackburn

    So what exactly is a tokenized dividend? Is it like a dividend payout that could appreciate over the years – separate from held shares?

    • Frank Nez

      Yes exactly

    • Todd C.

      I feel change is being talked about thoughts are turning to action.. and even more so across this whole country. Started in the ape community and has rippled out. Thank you for this forum

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