Welcome back to the channel everyone today, i want to talk about why adam aaron issued specifically 86 000 nfts, and i also want to talk about the exact value of citadel's naked shorts on the entire market. So stay tuned and let's make some money, and now i want to dive straight in with the key information, so adam aaron. Finally, let us know his plan that he had lined up to release today on sunday and he tweeted saying in the us sony pictures spider-man. Nowhere home tickets go on sale at midnight tonight, eastern time only for amc, stubs, premiere, a-list and investor connect members.

The first 86 000 buyers get a spider-man nft as well they'll go quick now. Firstly, i think this is brilliant as it's absolutely what we've all been waiting for. It is an amc nft now some of you might say well, they've not issued 513 million nfts one for each individual share, that's being held by shareholders. So surely this isn't what we wanted.

I personally think this is just the first step in the right direction, but i'll get on to that later, because, firstly, i want to talk about why adam aaron issued specifically eighty-six thousand nfts. Why not? Ten thousand? Why not? A hundred thousand, why not a million or why not? One thousand surely it'd make a lot more sense to release a round number of nfts like a hundred thousand or one thousand, not a very specific number, like 86 000 now you could say: well, maybe the amc brand is 86 years old, but that would be wrong As well because amc was founded in 1920, therefore making it 101 years old, you could say maybe adam aaron is 86 years old, but again that'd be wrong because he's only 67 years old and therefore to release a specific 86 000 nfts is quite unusual, especially as It has no real relation to amc or to adam aaron. If you didn't already know, i personally use blockfy to invest in cryptocurrency. Not only can you just buy some bitcoin, but you can also earn interest on your deposits paid in cryptocurrency up to 9.5 percent per year.

Therefore, you can keep on accumulating more and more and more bitcoin, and if you sign up to block files in my link in the description down below when you make your first deposit, you can get up to 250 dollars in free. Bitcoin. Blockfy also offer a rewards. Credit card with an introductory rate of 3.5 cashback on your purchases, also paid in crypto, there's also no annual fee, but unfortunately the credit card's only available in the us at the moment, but not in the uk and when you've generated a massive profit on your investment.

Instead of having to sell off your cryptocurrency and potentially missing out on the next run-up, you can just take out a crypto-backed loan with blockfy. Therefore, you can use your crypto as security and take out money as a loan, whether you need to buy a new car. A new house or just pay some regular bills, now cat, striker and pg believe that they found the correlation, and it also relates to one of adam aaron's earlier tweets as well so adam previously tweeted saying so. Many good ideas have come from our shareholders in 2021.

Always food for thought. Now, if you google, the number 86 you get this. It says first appearing in the early 1930s as a noun 86, which is also written as 86 referred to an item at soda fountain or lunch counter that had been sold out. Therefore, the term always food for thought relates heavily to soda fountain or a lunch counter, and it refers to being sold out, maybe like the float of shares, is fully sold out as well.

Now the float of shares being fully sold out also, coincidentally, would be food for thought, because, obviously, if the float of shares has been fully sold out, that must mean that surely naked shares or synthetic shares are being created at an alarming rate, and therefore this could Be a way for adam aaron to reveal that there are indeed naked shorts or synthetic shares in circulation, without necessarily exposing it and being accused of market manipulation or collusion now. Somebody else also believes there may be another reason why adam aaron chose this sunday to release the nft news and he posted on reddit, saying there's a reason. Adam aaron chose this sunday to announce something. He knows.

The equity roll forward cover schedule 9th of december is the next date and he can use this announcement as a spark to increase, buying pressure or short, covering and ryan cohen knows the same thing as well, and that's why he tweeted the sex for dummies recently and The bone afloat gift back in may confidently before the run into june, so the equity roll forward schedule i've touched on before, and it happens every january june and december. We know what happened back in january. Amc and gamestop ran up. We know what happened back in june.

Amc ran up again, so maybe that's going to happen again in december and that's why adam aaron and ryan cohen have been tweeting quite a bit now earlier in the video, i said that this nft announced by adam aaron is just the start and there could be More to come in the future - and i think this comment on reddit explains it perfectly and he said getting into the crypto and nft space is an excellent start. Then one day in the future, maybe offering an nft dividend, for example, won't be seen as a deliberate attempt to kill shorts, but rather a logical evolution for shareholder value. I think if adam aaron, just dived straight in with the nft dividend, he'd have tons and tons of hedge funds and institutions trying to sue him for market manipulation and just a deliberate attempt to squeeze the shorts. But if adam aaron slowly makes his way into the nft space, starting with a small commemorative nft and then working his way slowly to an nft dividend, it doesn't look like blatant market manipulation or a blatant attempt to squeeze the shorts.

Because remember, at the end of the day, adam aaron's job is to be the ceo and is to improve amc as a company. His job as a ceo isn't specifically to squeeze the shorts and to make his stock price as high as he possibly can, and thereby making his worth as high as he possibly can as well. His job is to be the ceo and build the company. Yes, if he can build the company and squeeze the shorts at the same time, that is brilliant, but he can't obviously just directly squeeze the shorts or directly expose it as it could be considered, market, manipulation or collusion, and therefore he needs to make.

It seem like it's a normal business move to issue an nft dividend. Therefore he started by getting into the crypto space accepting bitcoin and ethereum. Then he started accepting doge. Then he started accepting shiba inu and now he's issued a small commemorative nft, thereby steadily paving the way, with small stepping stones, all the way to the potential end goal, which could be an nft dividend.

Now. I also wanted to talk about and dig into something i found very, very interesting which came from that guy astro on twitter, firstly, mark codes, tweeted saying i just can't understand how ken griffin invests in the best money manager of this generation in february when melvin capital Was days away from going bust and now only a few months later, six months later to be specific, he took out half of that investment. Why not just leave it in for years or give the guy even more money? I think this is so so important because ken griffin and citadel obviously saved the melvin capital from going bankrupt, because if melvin capital went bankrupt, i think it would have bankrupted ken griffin citadel as well. Now, obviously, ken griffin and citadel are a bit short on cash and therefore need that cash back from melvin capital, because obviously the shorts are still being squeezed and astro tweeted saying it's also a common theme dig into knight media group or more specifically, night capital group In 2012, they had the newest and greatest liquidity source engine that accidentally lost 50 percent on a bad trade.

Ken griffin miraculously came to the rescue with a capital injection. Now i did some digging and found that very same knight capital group, the precursor to citadel. Now, if you look at the night capital group stock, when they had that drastic mess up and lost 50 percent of their cash on one trade, their stock price absolutely plummeted. Founded in 1996, it became a leading market maker and its electronic trading group handled a fair amount of the us market by 2012..

Along the way they were fined for various violations. Just like citadel they're known for the stock market disruption in 2012 that caused them to lose over 440 million dollars on a single trade. They literally blew up because of a failure of their computer system, but they were also net short at the time in 74. Companies to the tune of 3.15 billion dollars, they also had multiple short selling violations where they never actually bought the underlying securities and had to pay fines the tune of 12 million dollars.

Now the title of that article is called naked. Shorts can't stay naked forever, and i think this is also so so cool as it relates so heavily to amc, because the naked shorts in amc can't stay naked forever and will have to be covered at some point. So knight capital earned 333 million dollars in pre-tax profits in 2008 and another 232 million in 2009. But the journalists didn't think that knight was making that kind of money simply from executing transactions for clients.

As a market maker knight was in the rare position of being able to legally sell a stock, it didn't have that's called naked shorting. The journal is suspected that knight capital, either on its own or on the behalf of clients, made a practice of artificially increasing the number of shares available in a stock through naked shorting, thereby depressing the price. His suspicions grew when he noticed that knight capital, often traded in securities, that were red, flagged on the depository trust company's chill list or the regulation sho list the thing about naked short sales. Is they can't stay naked forever? Even if you don't have the stock, when you sell it at some point, it's expected that you hand it over, but instead of complying with regulation show and avoiding a fail to deliver.

The journalist alleges that knight circumvented it by manipulating an obscure process within the machinery of the nation's clearing system, known as the obligation warehouse. The obligation warehouse instead simply asks the buyer and seller of these x cleared trades. If they know the transaction actually happened, if they both agree, the trade gets confirmed with a journal entry and the buyer receives their stock purchase and it actually shows up in the buyers brokerage account. Even if those shares haven't ever been located, the trades still have active, ious and fails, but according to the journalists, theory buyers wouldn't clamor for the trades to be closed because they would have already received their purchase.

And if true, this would allow knight to effectively bury their naked short trades and bury those failed delivers and the journalists actually found out a way that you can detect the naked shorting on a company's balance sheet and figure out where naked shorts go to die. So when a company performs a reverse merger or reverse split, it typically results in a change in the cu-s-i-p number, the nine-digit identification symbol assigned to a public stock once that cusp or q-sip changes. The naked shorter has no apparent way to close out the naked short position, because obviously the stock identification number has changed. So therefore, you almost end up with two different stocks and therefore those naked shorts can sit in the obligation warehouse forever in theory.

But the aged fails essentially the orphaned naked short transactions remain on the naked shorter's balance sheet. As a liability to be paid later, the journalists believed knight accounted for its aged fails in the sold not yet purchased liability on its balance sheet. That liability is supposed to be an inventory of stocks for use in future market making, which goes up and down as orders are filled. But the journalist says it was a hiding place for a billowing structural liability and knight sold not yet purchased liability jumped from 385 million dollars at the beginning of 2008 to 1.9 billion by mid 2011..

Surely this is a figure that shouldn't really move too much as it's just stocks expected for future market making or maybe it would increase a little bit as the size of the overall firm increased, but obviously not from 385 million to 1.9 billion. He said the sold not yet purchased liability balloons. The market makers are typically in the moving and not storing business for stocks and like to keep their inventories as small as possible so like to keep that sold not yet purchase liability as small as possible. So what if we look at that sold not yet purchase liability for citadel virtue, susquehanna and james street? Well, we see with virtue their total liabilities, have remained fairly flat year on year, from 2020 to 2019, around 8.3 8.1 billion dollars in liabilities and their sold.

Not yet purchase liability isn't too huge in comparison 2.9 billion or 2.4 billion compared to that 8.1 and 8.3 in jane street. We can see an increase in total liabilities from 14 billion to 21 billion and an increase in sold not yet purchased from 12 billion to 18 billion, but it wasn't too huge. But when we look at susquehanna and citadel is absolutely catastrophic. Susquehanna's liabilities went from 39 billion to 83 billion and their sold not yet purchased went from 32 billion to a whopping 80 billion same with citadel.

Their total liabilities went from 32 billion to 67 billion and their sold not yet purchased went from 25 billion to 57 billion and therefore citadel holding 57 billion dollars in naked shorts and susquehanna are holding 80 billion dollars in naked shorts now, obviously, 57 billion plus 80 Billion is around 137 billion dollars, which is about 10 times the flow of amc. So that's potentially 10 times the float we have in naked shores, so with a float of 513 million shares, that's potentially 5 billion naked shores just from citadel and subscriber now. I guess that isn't going to be 137 billion naked shorts in just amc, because they're probably going to be naked, shorting other companies as well like gamestop, blackberry and many others. But i do think.

Obviously, the majority of their naked shorts is going to be in amc and gamestop, primarily now, on top of that, you've also got a factor in all of the other institutions and short hedge funds that are out there. It's not just citadel, and it's not just susquehanna. There's another 10 100, maybe even a thousand short hedge funds out there that could be engaging in the practice of naked shorting and also don't forget, that's the naked short balance at the end of 2020, the 31st of december 2020, before the run-up of amc in gamestop. In january and before the run-up of amc back in june as well, we know that citadel and susquehanna have doubled down trickled down, maybe even quadruple down on their naked shorts.

And therefore i cannot wait to see at the end of this year. What the total liabilities and sold not yet purchased is for citadel and susquehanna for 2021.. As the article points out, market makers are in the moving and not storing business. Both of these companies, liabilities have ballooned and everybody is looking the other way because they're making money, but once the music stops.

You know the rest guys before to. Let me know down in the comments below why you think adam aaron issued specifically 86 000 nfts and also what you think about knight capital group and their naked shorting, and actually how we can see the true value of citadel's naked shorts. And if you haven't already be sure to sign up to block files in my link in the description down below to get up to 250 dollars in free bitcoin and as always guys if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.