A very tiny bit about my backround.
I worked in private banking and savings and investments for a big bank in the UK and then moved to a competitor in which I worked in ISA investments for some time.
I have always been entrepenuerial and have for the last few years been out on my own having had enough of banking I ended up getting into GPU mining and running passive incomes through PoW mining and then PoS mining (this is relevent bare with me)
So currently I mine crypto into my ewallet portfolio and then I run my stocks and shares portfolio.
In crypto you have 2 ways to create it.
1: PoW – Proof of work mining.
This is the physical eletric consuming hardware route. You use this method to unlock the next block in the blockchain (the B coin and the E coin)
2. PoS – Proof of stake mining.
(now this is important)
This is DeFi – Decentralized Finance.
This is a non physical way of creating crypto and it is based around the fundamentals that if you stake your asset, you add your funds to a giant liquidity pool in which the more funds in it, the easier the flow of transactions in and out to bounce off other curriences against it. In short you get paid handsomely to be an automatic market maker through whats called ‘smart contracts’
In return for staking your money in these liquidity pools you are paid a live constantly rolling interest payment that works out on average maybe 100% per annum. These interest payments can be capitalized and compounded in your intial investment.
In other words, whilst you buy and hold a crypto, you are earning a constant high yielding dividend payment on it and still have the ability to move funds in and out without any hinderence or clauses.
there are several DeFi platforms that are popular like:
PANCAKE SWAP https://coinmarketcap.com/currencies/pancakeswap/
and
UNI SWAP https://coinmarketcap.com/currencies/uniswap/
SO YOURE WONDERING RIGHT NOW WHY IN THE FUCK AM I TALKING CRYPTO ON SUPERSTONK?
I see what your at Kenny, I se ya buddy
When the filing: SR-NSCC-2021-802 was posted I can remember at the time hearing grumblings about crypto not being accepted as liquidity on balance books but had never considered its ramifications.
please find below some of my findings.
on page 14 of SR-NSCC-2021-802 April 29, 2021
https://www.sec.gov/rules/sro/nscc-an/2021/34-91720.pdf PG 14
https://www.sec.gov/rules/sro/nscc-an/2021/34-91720.pdf PG 14
So in the NSCC filing it defines that the only acceptable form of ‘qualifying liquid resources’ to include, among other things, lines of credit without material adverse change provisions, that are readily available and convertible into cash.
Now this filing was on april 29th and had 5 business days to be enacted.
This takes us to May 4th.
Remember me randomly talking about DeFi UNI SWAP AND PANCAKE SWAP?
Well have a look at this………
you can see volume increases similar to short sold volume on GME : every spike in volume relates to a movement in GME
They were parking their money in places where the daily returns were better than the daily interest costs to borrow the shares
Nearly all the PoS cryptos peaked on May 3rd evening time rolling into May 4th
So when did our reverse repo rates kick off, oh go on lets have a wee lookie look and see………
Looks like the exponential rocket ignited some time between may 3rd overnight and oh my god May the forth be with you right before Cinco De Buyo day happened.
I believe that prior to the NSCC filing being passed and enacted, the SHF have been using DeFi Proof of stake coins to hide a lot of the cash that had been amassed from having sold short soo many shares across the field, not only in GME.
If you look at the correlation of when the Reverse Repo Rates ignited, it is the same time of this filing, the same time crypto PoS tanks, and the same time that the NSCC enacts the filing to prevent crypto being used as liquid.
I believe that prior to May 4th, these coins have been the primary location for hiding funds gathered through naked short selling, and prior to may 4th these coins were considered liquid assets on the bank balance sheets. Post May 4th, they are no longer considered liquid but rather assets and so we then saw the overall down turn of the crypto markets.
I cannot find the specific document but from memory I believe there was further information late apr/early may that procluded that Crypto due to reclassification as an asset rather than liquid would be eligibl for different tax status (commodities/equities taxes i have no idea about sorry)
TL:DR:
SHF used proof of stake crypto to churn profits from their large lumps of cash from naked short selling. the SEC said no, not happening. SHF now all of a sudden have all these tendies and no where to park them that they can get safety or high yield profits so they are parking their tendies with the fed.
BUY, HODL, BUCKLE UP
All of those charts, all those repo spike tendies, all that money across the board is bubbling out of every seem and the ony place it can go is into our pockets!
CANTSTOP. WONTSTOP. GAMESTOP.