In 3 minutes. Alameda & FTX "GREEN SHOE" What's That Even Mean!

Recently, Bloomberg reported that FTX might file for bankruptcy. They also found out that the founders were using depositors money to trade.

You can read the entire article here https://www.bloomberg.com/news/articles/2022-11-21/ftx-latest-genesis-bankruptcy-warning-buffets-crypto-markets?leadSource=uverify%20wall.

This news is devastating for investors, because they will most definitely not get their money back. What’s more, if you haven't invested congratulation you now have to lend money to your neighbour.

The good news is that you can get to know how this happened and how to not get caught with your pants down trading crypto or stocks. This article will show you how FTX and Alameda sucked all the money out of their investors pocket's like a dyson vacuum cleaner.

Here’s how…

First of all FTX is ultimately a brokerage/exchange and Alameda is a market maker or underwriter. Imagine you are a Reg A+ broker/exchange/portal where you market other peoples companies to raise capital and at the same time you are Goldman Sachs the market maker for these companies. However in this scenario you are not raising capital for actual companies, but you are raising capital for coins that have no value. But if they have no value, how are they being traded? Well here is where the market maker comes in. The market maker (Alameda) has something called "Green Shoe". According to investopedia

"Companies wanting?to venture out and sell shares to the public can stabilize?initial pricing through?a legal mechanism called the greenshoe option. A greenshoe is a clause contained in the?underwriting agreement?of an?initial public offering?(IPO) that allows?underwriters?to buy up to an additional 15% of company shares at the?offering price. Investment banks and underwriters?that take part in the greenshoe process can exercise this option if public demand exceeds expectations and the stock trades above the offering price. "

Price Stabilization

This is how a greenshoe option works:

• The underwriter acts?as a liaison,?like a dealer, finding buyers for their client's newly-issued shares.
• Sellers (company owners and directors) and buyers (underwriters and clients).determine a?share price.?
• Once the share price is determined, they're?ready to trade publicly. The underwriter then uses all legal means to keep the share price above the offering price.
• If the underwriter finds there's?a possibility that?shares will fall below the offering price, they can exercise the greenshoe option.

As I outlined in my article "Discover How to Make Your Stock Hot Like Megan Fox Without The Makeup.." how The process of the "Dog and Pony show"takes place (pasted below), click here to read full article.

"An associate of mine is a market maker, and his firm syndicates it's underwritings to over 44 different broker-dealers. These firms would invite my associate and me to their due diligence meetings for their underwritings. Note: The underwriters want as many market makers and buyers as possible.

What happens at these "dog and pony shows" is the underwriters try to get the brokers to have a few drinks before the show, and as the mood starts to get lite, the underwriters jump up and introduce the company's president who in turn is raising capital. They give him ten minutes to pitch, then the CFO pitches the numbers. If it's a tech company and the tech is really hot then there would also be a pitch done by the CTO.

After the directors finish their charts and graphs, the underwriter asks the assembled crowd to fire out their questions. Usually there are between 50 to 200 brokers in attendance and they would ask very though questions. I have seen deals die when the entrepreneurs reply with the wrong answer, you can feel the air in the room get sucked out of the building. Assuming all goes well and the questions slow down, the meeting breaks formally and the 200 brokers bombard the directors. Once the brokers are comfortable and feel like they have all their questions answered, they go back to the underwriter and perhaps give them the number of shares they might be interested in reserving (circling). The underwriter naturally says that's going to be extremely difficult because we have an overwhelming amount of demand for the stock. Ultimately doing their job of creating demand."

Sam Bankman Fried took this process in house and bypassed everything. He's the creator of the token, he's the broker and the market maker. CNBC's Jim Cramer called him the next JP Morgan but he's actually what Mayer Amschel Rothschild Quoted??"Permit me to issue and control the money of a nation, and I care not who makes its laws!

By controlling the flow of the money and buying and selling amongst yourself driving up the value and giving the token a market capitialization of whatever you want, then listing it on an exchange controlled by your company who has millions of people waiting to trade, is like heaven. Every broker and market maker's dream. We all love business but it's the customers we don't like and SBM came up with the solution. I create a product, create its value and let the customers trade it if they want. I'm just the reporter. Don't call me if all goes to hell. The company's have their own dun and brad street number, their own LEI's hell they even have their own CUSP numbers call them. It sounds like a religion to me.

As Gordon Gekko said in the infamous movie Wall Street "It's a zero sum game, money isn't lost or made, it's simply transferred from one perception to another like magic", "The illusion has become real and the more real it becomes and the more desperate they want it, Capitalism at its finest".

Add to that my article How Market Makers Can Drop Your Stock Price By Consistent Buying. Holy Jesus you just made a system that is better than the printing press that the Federal reserve has. Here's an excerpt from my previous article.

"A buy order for 10,000 block of shares is entered and instead of being executed at $0.26, the market maker makes the sale at $0.259. What happened here! The buy order ultimately dropped the price compared with the previous sale of $0.26. Therefore the stock shows 10,000 shares traded on a downward move which makes the buy perceived as a sale. Five to ten minutes pass and the market maker executes another buy order but this time for 20,000 shares at $0.258, creating another down tick on another buy order!"

In my view the hedge funds, institutions, venture funds and private equity guys knew what he was doing, and if you are a money manager you know how hard it was to deploy capital in low interest rate environments because all the assets in the world were highly overvalued, except in Russia. They found a fall guy that doesn't know what it means to be a director of a US company (article here), and he created an exchange that was liquid so why the hell not pump and dump all you want someone else is going to do the time.

Unless it is part of a conspiracy! Well then you can imagine whatever you want.

Now you know how brokers and market makers work. However, before I leave you to go on your day, I encourage you to read my previous three articles "How Market Makers Can Drop Your Stock Price By Consistent Buying." , In 4 mins. Will They O.J. Sam Bankman Fried if Acquitted.Read Now... and Discover How to Make Your Stock Hot Like Megan Fox Without The Makeup.. in order to fully grasp the FTX and Alameda situation.

In monopoly (UK Version) it works out that Pentonville road, Angel of Islington & Uston, the light blue sites on the left give you 159% return and are the best in terms of arithmetical return but the dark green sites which are what people think that are better Oxford Street, Bronze Street, and Regent Street only give you 101% return so they are very bad. The next best sites are the orange ones which are Bow Street, Vine Street, and Malbrough Street. They give you 141% return but they are better than Pentonville Road, Uston & Angel of Islington because there is an increased incidence of landing on them.?You land on them more often and the reason for that is, there is a card in the chance that orders you to go to jail. And if you go to jail, you are past the blue sites and about to land on the orange ones. In addition to that, there is another card in chance, ordering you to advance to Pall Mall which does the same thing, it takes you past the blue sites and another one demanding to advance to Marly Bourne Station.

There’s also another one demanding you to go back three spaces, which in one position will land you on Vine Street. So there’s an overwhelming case for having the orange sites. Now, most people do not know that.??

Quote

"Life is movement and movement in my opinion is represented as a wheel. It may be a car wheel, bicycle wheel,?or even a semi-truck wheel. In the end, you choose the size, width,?and type of rubber. What’s even better, you also have a choice to fill it with more air than the recommended pressure (for some that’s un heard of), however, one thing is crystal clear; to live a full life and have choices you must be willing to transform into a wheel rather than being a spoke on that wheel."

Amer Alamer (aka. Lamar Sidwell) is?venture capitalist and an expert in structuring real estate and business transactions. He is active in the mergers and acquisitions space as well as property development. He has been awarded three Real Estate Development Awards 2019-2020 (Best Developer Europe, Best Fiver Star Developer Turkey, and Best International Developer) by UK members of parliament and 80 other prominent judges at Prince Waleed Bin Talal’s hotel, the Savoy Hotel in London. Amer Alamer also helps small to medium-sized enterprises scale and exit by using public vehicles. He is also the winner of the Gold Stevie Awards 2021 for best innovation in the Financial Industry Middle East.

He is an author of How To 144X Your Options In Life which teaches how to structure real estate and business transactions using options. As well as taking them public on a recognized stock exchange. He has been featured in Smart Investor Magazine with a 4-page story.

Disclaimer: This material provided in this article should be used for informational purposes only and in no way should be relied upon for legal or financial advice. Also, note that such material is not updated regularly and some of the information may not, therefore, be current. Please be sure to consult your own financial advisor and lawyer when making decisions regarding your financial or legal management.?

#business?#lamarsidwell?#igftou?#ameralamer #ftx #crypto #SBF