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Bitcoin Is the Red Pill of Freedom

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What is a “dollar”?

One of the best-kept secrets of modern finance is the nature of money itself. I recall a televised dialogue between Ron Paul and Alan Greenspan, when the latter was the Chairman of the Federal Reserve Bank. He was asked by Ron Paul what exactly a dollar is. Greenspan’s answer was: “I don’t know.”

Now I ask this audience: Is it credible that the chairman of the Federal Reserve bank didn’t know what a dollar is? Is it not infinitely more likely he knew exactly what a dollar is, but had a compelling reason for not wanting to say it on the public record?

The simple fact is that for hundreds of years, a dollar was a measurement of weight, a specific number of grams of silver. So “one dollar” referred to X grams of silver. In his essay on the subject, Pieces of Eight, Edwin Vieira Jr. demonstrates beyond any doubt that the constitutional dollar of the United States is a “historically determinate, fixed weight of fine silver.” The Coinage Act of 1792 is but one source among many that makes this plain. It reads:

“the money of account of the United States shall be expressed in dollars or units … of the value [mass or weight] of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure … silver.”

That “a dollar” was a reference to a measured weight of silver and indirectly of gold, was understood by every American man woman and child for hundreds of years. That understanding has been lost over time, since America’s gold was confiscated from the American people by FDR in 1933.

America’s wealth was confiscated in 1933

That America’s gold was forcibly taken in 1933, under threat of huge fines and 10 years imprisonment, is a matter of public record. There is the question of where it went that needs to be understood, and why it was taken is an equally important question which is directly related to the first question. People were threatened with jail time and huge fines because otherwise few would have voluntarily given all their wealth to a government they understood to be their servant.

After all the real wealth was forcibly taken from American people, who was it given to, and why? Most people not only don’t know, they never even considered the questions. But rest assured that SOMEONE took ownership of it. Further, it doesn’t take genius to understand that the decision to confiscate all the accumulated wealth of every American was not made lightly. Most Americans did not give up their wealth voluntarily. There MUST have been a very compelling and dire situation that provoked such a desperate act on the part of the US government. We will discuss that shortly.

What did the American people get in exchange for the total accumulated wealth of some 250 years of American enterprise? In return for the wealth of a nation, the Federal Reserve gave the American people “green pieces of paper,” redeemable for silver (initially). The Indians who got trinkets for selling Manhattan got a better deal, actually. Those trinkets likely had some intrinsic value which paper does not have.

It is hard for the novice to grasp the concept that those green pieces of paper in our wallets are not actually ours. They were lent to the US government (which then distributed it to the population though various purchases and programs). Lending something implies that ownership remains with the lender. If one lends a neighbor a tool, he typically expects it to be returned. Understanding this point is critical.

Every one of those green pieces of paper still belongs to the Federal Reserve, which lent it to the US government. (It is called a Federal Reserve “note”, because a note is evidence of a debt, in Finance.)

So, the American people are using the legal property of the Federal Reserve to “facilitate commerce.” They have no viable choice but to use these pieces of paper to transact business, because real money has not been available since 1933. The central bank in question is privately owned by various persons and corporations, but ultimately there is but a very small group of shareholders of the bank. They are running their business first and foremost to maximize long-term profits for the benefit of the shareholders.

1913 was a fateful year

Beginning in 1913, the owners of the Federal Reserve began lending to the US government an essentially worthless currency which was nevertheless useful because people were willing to accept it in place of gold and silver coin. But despite lending mere pieces of paper, the owners of the Federal Reserve demanded interest payments in gold. Within 20 years, after borrowing so much money to fight WW1 and even more during the roaring 20’s, the US Government was unable to make its interest payments – so the owners of the Federal Reserve foreclosed.

FDR was only in office a couple of days before every bank in the country shut down and did not open again until after he agreed to essentially confiscate the gold of every American, to be given to the owners of the Federal Reserve bank, in payment of the accumulated interest on the government’s debt.

After that fateful day there was no longer any gold in American circulation; there was no longer lawful money available to the American people (silver was still available, but the real store of wealth had been gold). How then could anything be bought or sold? Barter was not only unacceptable in practice, forcing the population to barter would plainly expose the horrific theft that had just taken place! So green pieces of paper, owned by a central bank not answerable to the US government, was substituted to facilitate trade.

Once the readers grasps that the central bank is a private corporation, it becomes clear that “Federal Reserve notes” are not different from “Chuck E. Cheese Money”, or “Disney Dollars”, with a picture of Chuck E Cheese or Mickey Mouse printed thereon. Pictures of dead Presidents are put on Federal Reserve notes to give an illusion of legitimacy. It is not real. It is a façade – an illusion, a deception.

It is important to reiterate that Federal Reserve notes remain the property of the Federal Reserve, and are lent to the American government at interest. As owners they are legally entitled to rental fees from those using their property, in the same manner that an apartment owner can justly demand rent from his tenants. These usage/rental fees are paid in the form of income taxes. Hence, the more of their notes one controls (i.e., the more money one makes), the higher the fees/taxes. This is the key to understanding why it was only after the government began borrowing Federal Reserve notes in 1913 that the income tax was deemed constitutional by the Supreme Court.

The wealth a very few men/families have accumulated from this lending arrangement in the past 100 years is staggering. It is said that less than 200 men own most of the world. The owners of the world are never in the newspaper, would not be recognized on the street, and likely do not even live in America.

In addition to rental fees (income taxes), the true owner of Federal Reserve notes can and does demand “terms of use.” It is no different from the EULA you must agree to, as a condition to use software or internet services these days. If you use the property or service you must agree to the terms. It is the same with Federal Reserve notes. The owners of the notes lay out any terms they think they can get away with. Limits on withdrawals from bank accounts, limits on deposits, limits on amount transported by plane or transmitted over the wires, etc, are routine. Once you understand the issue of ownership/rent/terms of use, so much begins to make sense.

Now the “New Deal” makes perfect sense

Chickamauga Dam spillway was built from 1936-1940 by the Tennessee Valley Authority, created by President Franklin Roosevelt.

Understanding the ramifications and implications of the nation renting its currency from a privately owned corporation, and thereby becoming subject to ALL MANNER OF REGULATION AND FEES, we can finally understand why the “New Deal” was implemented in 1933. Immediately after the banks re-opened in 1933, Americans were suddenly and for the first time ruled by all manner of bureaucrats in government agencies. They suddenly were informed they were required to get a license to do almost anything that involved earning those bits of green paper.

High school history students are taught that American society was radically transformed by the New Deal, but are never taught exactly why. In light of what we have now learned, it now makes perfect sense.

The Supreme Court initially objected to this violent upheaval of the American experiment, but FDR threatened to pack the court unless they accepted the terms of the bankruptcy proceedings he was facilitating. Faced with such a Hobbesian choice, the courts yielded and rubber-stamped the rental fees and regulations that came with using privately owned notes in commerce. In 1913, when the Federal Reserve first began lending to the government, income taxes were deemed constitutional by the court, but were only applicable to a very small group of people who directly benefited from those pieces of green paper. After 1933, an ever-increasing number of people were required to pay. Now we know why.

Voluntary Income Tax

It is often said that as a matter of law, income taxes are voluntary. We have all heard this. Yet, in the same breath, those that teach this maxim to us, tell us that we MUST nevertheless pay it. This obvious contradiction is never adequately explained. Virtually every tax protestor in the last 30-40 years, no matter how smart and eloquent, has lost his case. Many of them landed in jail for their valiant efforts, despite reminding the courts that we are taught that taxes are voluntary. How is this bizarre set of circumstances possible?

The tax courts are ruled by the presumption that using Federal Reserve notes is a voluntary act. If you don’t want to use them, you don’t have to. But if you do, then you must pay a usage fee (tax).

Those unfortunate incarcerated tax protestors did not understand that the Federal Reserve notes in their bank accounts are owned by the central bank. Simply having a dollar-denominated bank account in their name, or having a dollar-denominated credit card, was incontrovertible proof that the protestors owed a rental fee, which they refused to pay.

Of course, this arrangement is far from fair from the perspective of the people who use Federal Reserve notes in total ignorance of the terms of use, which is 99.999% of the population. Indeed, it could (and should) be argued that the contract is fraudulent, since the system has deliberately hidden these facts from the population. Does not a valid contract presume that both sides understand the terms of the contract? If one party deliberately hides pertinent details, is not the contract voided? I’ll leave that question to the lawyers, but I’m pretty sure we know the answer.

Global Control

As a result of these circumstances we were born into, the owners of the world’s privately owned central banks now essentially own and rule the world, as they dictate terms of use and rental fees for almost all currencies globally. At this point, almost no countries own their own central banks which are answerable to the elected government. The few countries that do are routinely vilified and targeted for “regime change”. So, the world has been living akin to “The Matrix”, where the populations of the world have lived in complete ignorance of their desperate situation as virtual serfs in a feudal hierarchy.

Title to Property

Understanding that there is no lawful money in circulation is also the key to understanding why one cannot get lawful title to their properties or even lawful titles to their cars. How can you actually pay for “real” items, with “fake” money? You cannot. (“Certificates of Title” certify that a title exists, but are not the title themselves.) And so, you only receive certificates of title to your home and car. Because the actual tile is held by the “true” owner of your house and car, you must register the car to drive it, and can be evicted from your fully-paid home for failure to pay “taxes”, which as discussed earlier, are usage fees. This is only possible when we don’t hold title to property.

ENTER CRYPTOCURRENCIES

Unlike fiat currencies, cryptocurrencies such as Bitcoin are not owned by the central banks. They are owned, wholly and completely, by the person who controls the address in which the bitcoin’s are registered. This is the reason that central banks are struggling to find a way to regulate Bitcoin and the lesser-known altcoins. The central banks have been hamstrung and limited to exercising a very modest degree of regulation over exchanges where cryptocoins are converted to and from fiat currencies. It is only the fiat currencies they are lawfully able to regulate, not the cryptocurrencies. But, by regulating the conversion to fiat they give the appearance of regulating the cryptocurrency. It is an illusion – they know it, and are hoping that the rest of us never figure it out.

It is a certainty that central banks want desperately to directly regulate and tax cryptocurrencies as freely as they do fiat notes. (The Bank of China is said to preparing a Chinese cryptocoin for that very purpose.) However, in the absence of a central bank-issued cryptocoin they will likely not do so directly. Why not? Because they are rightfully afraid that a successful court challenge would prohibit such regulation, and in doing so, the resulting publicity might inadvertently expose to humanity the real reason central banks are able to tax and regulate fiat notes.

The last thing the owners of the central banks want is for the public to learn that their retaining ownership of Federal Reserve notes has made them the de facto rulers of the world – far wealthier than the kings of old, the Tutors, or the popes, ever dreamed of. This well-guarded secret could be revealed to the public as a result of a successful court challenge to the illegitimate regulation of a currency they do not own. It’s not worth the risk – not yet anyway.

The Red Pill is available

For the first time in more than 100 years, the owners of the central bank are confronted with a means though which the people of the world might actually escape from their control. To date the central banksters have not figured out a way to stop it (without turning off the internet). They have successfully slowed down the inevitable by keeping the great masses of people ignorant of cryptocurrencies, and/or afraid of them, by stressing their volatility, by associating them with nefarious activities, etc. But a tipping point approaches.

The Federal Reserve Bank

Until the recent advent of cryptocurrencies there has been no viable and effective way for the American people to be free of the debt-slavery feudal serfdom that using Federal Reserve notes has brought upon them. But cryptocurrencies are offering a way out of the matrix. The red pill. To make matters worse for the central banksters, cryptocurrencies are immeasurably more convenient than their “green paper” competitor. They can easily be sent to anyone without any government-mandated paperwork or oversight. No need to ask any bureaucrat’s permission. They are easily usable down to 8 places to the right of the decimal point. 0.00000001 bitcoins can be easily spent. The cryptocurrency is appreciating in value every year, whilst the green pieces of paper become increasingly worthless every year. How terribly inconvenient for the banksters. The solution to mankind’s slavery is also an infinitely better medium of exchange!!

When the day arrives that one can easily buy and sell virtually anything and everything without conversion to fiat, i.e., when most everyone understands and uses Bitcoin (or another altcoin) on a daily basis, to buy their coffee and donuts, to leave a tip for their waiter, etc, more than a centennial of tyranny will start to quickly unravel. The problem of title and ownership of real estate and other high value goods will still need to be worked out; but endless regulations, terms of use and rental fees will rapidly come to an end.
May that day come soon.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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5 stars on average, based on 2 rated postsJim has an MBA from the University of Southern California. He has had a long career in both Corporate Finance and IT. Along the way he discovered that trading was a vehicle with great promise, but struggled for a long time without a mentor. After having been knocked down many times and having struggled to get back up, he had an epiphany and realized that geometry was a solution. He shares his experience here. If you do well as a result of suggestions made here, feel free to say thank you :) BTC: 1FUq3GB1Q8zz2JpuBr7YHzVBKnaWoxgmya Follow him on Twitter (@jimfred1276) or email him at jimfred1276 at gmail.




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5 Comments

5 Comments

  1. Richard

    March 8, 2017 at 6:49 am

    And at the same time, A gold dollar was 28.5 grains of pure gold equaled one dollar.

    • Edward Talliot

      March 8, 2017 at 5:30 pm

      Do you think an ideal economy would consist of gold backed currencies? What are your thoughts on the current monetary system we have?

    • Jim Fredrickson

      March 9, 2017 at 4:43 am

      Yes.

  2. Jim Fredrickson

    March 9, 2017 at 4:52 am

    I think it’s clear that the present system is not simply unsustainable. It is exploitative to the point of being evil. Gold and other precious metals were/are a MUCH better system of economics than fiat.

    But cryptocurrencies, are (in my humble opinion) even better because they can be easily sent to anyone anywhere, and are divisible to 8 points to the right of the decimal point. Bitcoin could go to $1 million per coin, and $1 transactions could still take place. With adequate safeguards, they cannot be stolen by a pickpocket or burglar.

    None of these points are true of the metals.

    But I am not trying to pick a fight with the gold bugs. I agree with them wholeheartedly that if it were possible to get gold and silver back into circulation as money, that would be infinitely more just than the current system.

  3. derick

    September 18, 2017 at 10:47 am

    i don’t really understand. the process of calving a gold piece to accurately meet the specification of 1$. is it not the same process of making green piece of paper to fit specification of 1$. Why is it that the federal reserve can not do it for gold and still get away with the taxis as they do with the green papers. I mean the federal reverse could just say ” you want gold? ok …” and they start producing gold people use and still pay them their “rents”.

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Trans-Fee Mining: Investigating FCOIN and The Future

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Trans-fee mining’ is a concept utilised by a growing number of projects and exchanges which has not received much in the way of critical attention recently from either mainstream financial or specialist cryptocurrency publications.

The Fall of F-Coin?

Thanks to a company called FCOIN, most of the news which has appeared has been negative. Statistical information regarding the exchange can be found at popular aggregate ranking website CoinMarketCap.

Despite positive coverage earlier this year from the likes of Forbes’ Andrew Rossow, David Hundeyin of our sister site CCN.com wrote more recently that the exchange had been “Accused of Crippling Ethereum Network for Cheap Publicity” with a supposed aim of gaining publicity.

These pundits are joined by community members such as Reddit poster u/ltcisking (along with a large amount of other concurring, Google-topping results), who recently wrote a post aimed at proving such allegations, entitled ‘One of the biggest scams to ever hit Crypto’.

Twitter has also seen its fair share of investor complaints as well, including the following…

As well as the replies to this post,

What is Trans-Fee Mining?

Due to the unusual circumstances in which the ‘trans-fee mining’ sits (being supported by a number of independent projects despite the reputation of FCOIN): it is a difficult methodology to describe.

It builds upon the concept of the ‘exchange token’: which is most often associated with coins such as BNB (Binance Coin), which can be used for staking towards a particular crypto in the exchanges ‘community coin of the month’ program.

The original FCOIN implementation appeared to build upon this vision at first. The token’s value is derived from the fact that it has a stable value, and that it can be used on-platform (like BNB) as a means of purchasing other tokens whilst offering regular returns on investment for long-term holders of the token.

What is FCOIN Doing Now?

FCOIN has issued various statements which appear to support the sentiment behind the claims which they have faced. These include a recent August 14th post, with the telling title ‘FCoin community referendum end and recent plan publicity’.

Highlights of the piece include new objectives such as

“1.Complete and publicize the destruction of the remaining unissued FT.
“2. Complete the delivery of all FT warrants and withdraw the FT warrants from the market…
“4. As of the end of the referendum, the previous trans-fee refund will remain unchanged (based on the price of the FT related trading pairs before the suspension), and then, all the trans-fee refund will be stopped (including all return plans based on FT issuance).
“5. We plan to establish an FCoin mechanism and an announcement cleanup team. The team untied and improved the current FCoin mechanisms and standardized the release of various mechanisms in the future, and made a unified interpretation.”

At best, this may be an admission of fault, and at worst: an ambiguous and uninformative piece of messaging which fails to outline the situation with a strong brand or executive voice.

This comes in addition to a couple of announcements regarding ‘compensation planning’ with regards to investors who had “participated” in the fundraising of the ‘GU’ and ‘QOS’ tokens through their service.

The latter included the assurance that this process “compensation plan is an initiative taken by the platform to protect the interests of community user” concluded with the damning statement that:

“The FCoin platform has informed the QOS project parties and urged them to conduct self-examination of market price fluctuations and recent media reports as soon as possible. It is not excluded to take delisting and other related measures. The specific plan will be subject to the subsequent announcement. During this period, QOS will be temporarily suspended.”

Torch-bearers of Trans-Fee Mining?

Various claims of discrepancy against FCOIN’s actions as a company however, have not discouraged many projects which are attempting to build their own version of trans-fee mining. Whether or not they have been inspired by the short-lived success of FCOIN’s implementation is yet to be confirmed!

One of the most recent organisations which has decided to foray into this difficult and all-but-controversial territory is BitMart, an exchange founded by current CEO Sheldon Xia. Their approach is branded ‘Mission X’, and utilises their proprietary ‘BMX’ token.

“All transaction fees from the BMX market will go directly to the users who supported the project. In addition, successful projects will enter BitMart’s main trading markets.

“This program gives users the ability to decide which projects they want to be listed on the exchange, creating a self-regulated market.”

The platform piqued this writer’s attention upon noticing a disparity between public consensus and professional news coverage. Whilst the latter has published next to nothing with regards to the platform, a quick search of social media and communities such as forums seem to illustrate a positive and transparent image.

CoinEx was recently reported to have achieved unprecedented growth following the release of their token – however, like FCOIN have been called out for discrepancies. This time regarding the faking of volume metrics.

Final Thoughts

It appears that trans-fee mining as a concept is a long-way from earning this writer’s confidence, however it must be noted that there are many promising aspects. Time will tell whether talent will shine through or if trans-fee mining will fade out at the hands of opportunists.

What is important to note is that it is not the technology or idea, but the hands that are operating the machine incorporating it.

This writer cannot directly recommend the concept in its current state, but believes that the original idea is solid and if implemented in a viable way: would thoroughly warrant the full attention of any potential investor.

Until then, watch the community and keep an eye on the media – as well as word-of-mouth as this flawed-yet-promising idea is if nothing else, highly interesting!

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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What You Should Know About IPOs

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By Dmitriy Gurkovskiy, Chief Analyst at RoboMarkets

 

IPO means initial public offering. Any company that wants to grow its business must decide on its financing method, sooner or later. There are a few options to do that. The first one is taking a loan in a bank. The second one is finding an investor that would give some funds upon their own conditions. Finally, another method is finding multiple investors that would finance the company, which in exchange would require making the business and financial information of the company public. This is exactly what is called an IPO.

In fact, the company sells a part of it as shares in a stock exchange, and the more investors buy shares, the more funds can be raised. The shareholders will then be able to get dividends, i.e. a fraction of the company’s profit. Not all companies are, however, ready for this: for example, Facebook does not pay dividends, the only source of income for investors being rising share prices. Some companies cannot afford not paying dividends, as it may become less attractive for investment. Apple, on the contrary, pays the highest dividends in the world: in the first half of 2018 shareholders got $13.22 billionin dividends. Facebook will start making dividend payments, too, but obviously when the price is going down and there are no other ways to support it.

Thus, investors have two options to earn money here: with the price going up (to capitalize on this, the company in question must be fast-growing and have very good potential) and with dividends. Ideally, an investor should leverage both options whenever possible.

In order to run an IPO, the company must find an expert who will be able to raise as much funds as possible. Of course, it may act on its own, but in this case chances are that the funds raised will not be even enough to cover the IPO running costs. The professionals that run IPOs are called underwriters, and are usually banks and/or insurance companies.

How Do Underwriters Earn?

Underwriters finance IPOs and get shares at a price that is considerably lower than IPO. This is how they earn. To make more money, underwriters will make every effort for the IPO to be successful and attract as many investors as possible. Many of them run road shows, i.e. ad campaigns for attracting investors.

Road shows include meetings with potential investors and analysts in countries with key financial centers, such as the UK, Germany, the US, or China. Before that, a presentation on the company’s business, financial background, and outlook is created. The company’s management then comes to visit potential investors where they show this presentation. Media and press coverage of the upcoming IPO is also very important, as it helps drive more attention to the company once it get listed on an exchange.

During road shows, large-scale investors can buy shares even before the IPO. Underwriters accept such bids, but often with a high entry only, like a few millions of dollars. If you have just a few dozens of thousands, you are unlikely to be able to buy shares directly from the underwriter. However, there are tricks that may allow you to take part in the IPO even before the latter actually occurs.

As mentioned above, road shows are often covered in media in order to increasedemand. During such campaigns, some intermediary companies form a pool consisting of may lesser bids and send the overall bid to the underwriter. In theory, this works fine, but in practice underwriters seldom answer such bids.

The first thing you need to pay attention to before the company’s IPO is the underwriter: the more famous and trusted it is, the more likely the IPO will be successful.

If the company itself is a promising one, underwriters will be competing for the right to run its IPO, and the company will have a chance to choose from a list of very reputable underwriters, such as Morgan Stanley, Citigroup, or Goldman Sachs. Choosing two or more underwriters at a time is also possible.

The results of the road show determine the share price, and it is quite important not to make this price too high at the start. This very thing happened to Facebook, whose underwriter was Morgan Stanley. Interest in Facebook’s IPO was extremely high, and while the starting price was first set at $17, Morgan Stanley decided to make it higher a few weeks before the event, as well as to increase the number of shares issued (out of mere greed), which then led to the share price falling on IPO day. Overall, Facebooklost 21% during the first week.

After the company finds its underwriter, it also has to determine which exchange to use for the IPO. Again, if its a promising company, the exchanges will be competing for it, too, as more successful public companies mean more liquidity, volume, and commission earnings.

When the exchange is found, too, the very trading process finally starts. On the first trading day, increased volatility is a common thing. In order to maintain high interest towards the IPO, underwriters tend to a bit underrate the shares, so that the price may go up at the moment of the IPO.

During the IPO,  insiders, i.e. those early buyers who got shares before they went to the public, may not sell any shares; you can’t earn anything by going short, too, as during the IPO short positions without coverage are forbidden. This way, the traders may either buy shares or do nothing.

The period during which insiders are not allowed to sell shares is called lockup and lasts from 90 to 180 days. The exact time line is determined by the company, and the terms are negotiable. This is all very important for the company, as shortly after the IPO a very low fraction of shares is sold out, while the major stake is held by those who but them before the IPO; if they sell at once, the supply may increase a few times, which could lead to a sharp price decrease and panic among investors.

The lockup is lifted gradually, where the shareholders may start selling their shares in order to stimulate volumes, which leads to temporary falls by 1% or 2%. Lockup dates and time lines are detailed in the S1 online form which is sent to the Securities and Exchange Commission (SEC) every day.

Those who want to capitalize on the IPO on the same day have to pay attention to some factors that will show whether such IPO will be successful. Remember: no short positions during the IPO, so if you want to trade, you will have to buy.

The first thing you must pay attention to, whether you are investing in the short term or in the long term, is the underwriter: the more famous and popular it is, the more likely that shares will go up after the IPO.

The second thing is the percentage of shares offered during the IPO. If it is too large, this may influence the share prices negatively, especially considering that those who bought shares before the IPO will be also selling them at some point. Conversely, small percentage usually makes the price go up, although you should pay attention to a number of factors, not just this one.

Third, there is a price range defined before the IPO: the wider it is, the more in-demand will be the shares once trading starts. Then, you should watch the open price: if it is near the high of the range or goes even beyond, this will show the demand is quite high, and may lead to the price rise both intraday and in the midterm, when the lockup period is over.

However, there are volatility risks, too: when the price opens higher than the pre-defined range, the price rise may last for a very short time, after which the price will return within the range again. After this happens, a good support level may form, which may later be used as an entry point. Conversely, if the price opens lower than the range, this means the demand is low, and the shares may lose even more going forward.

The number of employees is quite important, too. Some IPOs are run with three employees in the company; of course, this is dangerous: they just want to raise funds, and don’t care about what will happen next. This has happened in cryptocurrencies lately, where each one with appropriate skills and equity was able to create their own crypto and start trading it.

IPO Explained: Opera Limited

Opera Limited, the owner of the famous Opera web browser, ran its IPO on June 27, 2018.

  • 6M of shares were offered after the IPO, while 60M went to some retail investors before; thus, over 15% of shares went to the market.
  • The number of employees in the company exceeds 800 people.
  • There were two underwriters: Citigroup and China International Capital Corporation Limited, one of the leading investment firms in China.
  • The range was between $10 and $12.

Upon the market opening, the price exceeded the range by nearly 15%, making it $14.33, while at some point it even went to $15.50 and above. This shows investors are highly interested in the company, which is a good signal for long term investmemt. With high volatility pressure, the price went below $12.00, but then got support and went up again.

Currently, Opera shares are trading withing the range set up before the IPO. Once the lockup is over and $12 gets broken out, the price may start uptrending steadily.

opera IPO

In the midterm, there is only one risk for Opera shares: the trade war between the US and China, which may lead to a massive fall in the stock market, and in Opera Limited shares in particular. Many analysts say trade war issue may get escalated this fall, so such risks should be taken into account at once.

Disclaimer

Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboMarkets shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.4 stars on average, based on 7 rated postsHaving majored in both Social Psychology and Economics, I went on to continue my education in post graduate. Later I worked as a team lead of a tech and fundamental analysis lab in the Applied System Analysis Research Institute. This helped me to acquire all necessary skills and experience to become a successful trader and analyst, as well as a portfolio manager in an investment company. I'm a pro in the financial field and the author of articles for various international media. I also hold the position of Chief Analyst at RoboMarkets.




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GDPR and Blockchain: Three Projects Seeking to Decentralize Data Protection

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Whether you’ve been keeping track of the news or are a citizen within the European Union yourself, there is a great chance that you have noticed the recent discussion regarding the newly implemented GDPR (or ‘General Data Protection Regulation’) in the bloc.

The rules came into effect this year alongside the recent vote in favor of implementing stricter copyright laws pertaining to intellectual property and ‘memes’ and has caused a fair bit of controversy, alongside the recent worldwide events including the USA, and their repeal of ‘Net Neutrality’ laws across the entire USA.

Image source: Forbes.com

Advertising, Big Data and You

For a wide range of reasons, digital advertising is a huge industry – being near-perfect solutions for digital, web-based organisations which are seeking to maximise their revenue / profits, whilst minimising expenses.

A common phenomenon affecting advertising is ‘Big Data’, where user information is collected and processed through complex artificial intelligence (AI) algorithms.

Your usage of internet technology more likely than not creates an endless trail of digital footprints, which are gathered and interpreted by companies and their systems to provide and interpret detailed insights on user habits.

Data Protection Rights

GDPR is meant to result in transparent and honest interactions between consumers, big data companies, and even social media companies such as Facebook now face the challenge of how to market or rebuild trust with consumers. Though there is still a myriad of concerns amongst consumers regarding how companies will approach this.

Implementation of GDPR has caused quite a shakeup for the AdTech industry, with users are being given total control over how much data websites and applications can collect about them.

Now users can consent to which cookies web operators have access to, but there are still several ways for big data to continue to profit from your data without cookies. Methods such as incoming IP tracking scripts, Browser Fingerprinting and malware-infected websites are commonplace and could prove more malicious than previous methods.

Can Blockchain Further Increase Data Privacy?

Technology has already empowered websites visitors with the ability to overcome issues such regarding data privacy and invasive advertising tactics.

‘Adblocker’ for example is a web-browser extension which automatically removes almost all adverts from a website, and just like ‘NoScript’ (removing potentially malicious scripts from pages) has been utilised by software such as Tor Browser to achieve thorough user safety and anonymity.

Through these kinds of solutions, blockchain or not, website operators are going to be encouraged to increase the quality and value of content on their pages.

Considering such software and the exponential growth of blockchain as an industry, it is of little surprise that we have seen an influx of services, products and ICOs which seek to combine the benefits of these technologies with those of blockchain / cryptocurrency.

Here are a few of what we consider to be the most interesting in the present crypto space…

1. Online.io

Image source: Online.io

The Online.io project financially rewards website operators in a ‘proof of online’ system which essentially quantifies the time spent on each website and rewards website operators appropriately. It is also the only project in this article which we haven’t reviewed on this site so far (although I wouldn’t count it out for the near future, so watch this space!)

Their proprietary crypto-coin (OIO) will be used to distribute rewards to all parties based on visitor time-spent, bounce-rate and other established metrics. This presents a fascinating opportunity for website owners to still effectively monetize their website in compliance with GDPR and without the need to utilize other means of data collection.

Online.io could somewhat be considered a democratized system, as users rank each website based on their experience. The highest rated websites will be rated higher in ‘Trust’ through an algorithmic formula, which acts as an indicator of website quality for future visitors.

It’s likely to continue delivering a highly positive boost to the whole ecosystem as consumers now (especially millennials) would rather get rid of traditional advertising methods: hence ad-skipping buttons on YouTube as well as Ad-blockers and anti-tracker software.

2. Peer Mountain

A blockchain based project which seeks to connect so called “self-sovereign ID holders with businesses, enabling commerce at scale” by utilising technological solutions like smart contracts.

Peer Mountain is unique for providing customers (a private individual / citizen) with a greater level of confidence when looking to access a product or service – no matter where they are, or what their country of origin may be.

To the organisations taking part, budding entrepreneurs worldwide, a whole new market audience is available. A mutual benefit which is equally enjoyed by the ‘self-sovereign ID holder’ too – incentivised by not having to register their private information on a host of centralized servers.

The security is achieved through use of innovative code: which makes use of a combination of user-experience solutions, with the innate security benefits of distributed ledger technology and cryptocurrency.

3. DOVU

This team has put all its efforts into creating a ‘mobility’-focused solution which incorporates “a unified token, wallet and marketplace for earning and spending mobility related rewards”. By mobility, what they are referring to is of course transportation related activities: such as ride-sharing and courier services.

In this instance however, it also applies to mobility information – and how it is bought and sold in the data economy.

Unlike the other solutions listed, DOVU aims to resolve the contentious issue of data privacy by allowing service providing companies make direct offers to users of its ecosystem in return for a quantity of the platform’s proprietary token.

Key use cases and clients pegged to take advantage of this platform include automotive manufacturers and marketing organisations for use in big-data research and algorithmic insight / report generation.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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