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.
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
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
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 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?
The only difference is the squeeze would be much more aggressive.
Will Adam Aron Approve A Tokenized Dividend?
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.
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.
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