Tom Talks About Market Manipulation and the Cryptocurrency Boom
Transcript:
Katie Nealis:
We have another question in from Alyssa saying, “Do you think we would have another GameStop situation?”
Tom Vaughan:
You notice that it’s kind of died off, right? I mean, there was a bunch of them, AMC theaters and GameStop and etc. And it has really kind of died off. And because those guys are the same guys that are now buying this cryptocurrency, just in my opinion. And the other part of that is the GameStop and the AMC, it took a special situation, you need to have a relatively small company with a relatively small number of shares. Because that’s how you can run it up. And there had to be a lot of short interest on that company. So that as you run it up all those people that were short sale, GameStop had to buy it back, because that’s how shorts work and which makes it go up even further. And so a lot of the hedge funds that were shorting these companies have now backed off. And if they’re shorting they’re going to do it on a much bigger stock that’s much harder to manipulate. So I don’t think it’s going to be as big a deal going forward. And now they’re actually talking about changing some regulations around it to which will probably take a while, but that could create a problem for those guys to continue doing that also.
Easan Arulanantham:
I know just for them in communication on forums and on the internet, it’s a lot more watched, and it’s a lot more speculative. So there’s people aren’t gonna be as aggressive with gathering people together to make these kind of big moves as a group.
Tom Vaughan:
Yeah, because technically, that’s collusion. You know, you get it set the market manipulation. That’s been its old as time actually, as old as the stock market. People have been trying to do that. But you’re not supposed to do that. And technically, you’re putting it right out there in the public view. So if the SEC really decides to go after that, that could be interesting to see. So yeah, I think that’ll be another piece that makes it harder. I don’t think that’s going to be a big, big issue here. I think the cryptocurrency craze and this, I think we’re in the first quarter of this year, watch, this is tulip mania, this is going to go pretty nutty, just with people trying to do that that’s going to distract anybody. When Dogecoin, which was essentially set up as a joke, is up 11,000%. You know, that’s the game. That’s what they’re gonna play.