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I think this DHH and Jason Fried (37Signals of Basecamp fame) always felt really applicable to crypto: 37SIGNALS VALUATION TOPS $100 BILLION AFTER BOLD VC INVE

I think this DHH and Jason Fried (37Signals of Basecamp fame) always felt really applicable to crypto: 37SIGNALS VALUATION TOPS $100 BILLION AFTER BOLD VC INVESTMENT September 24, 2009—37signals is now a $100 billion dollar company, according to a group of investors who have agreed to purchase 0.000000001% of the company in exchange for $1. When 97% of the coin holders bought in at 0.000001 cents, its really the 3% of retail investors buying on margin that push the price of the coin market cap which can lead to absurd market caps. Market cap should be determined by 97% x $0.000001 + 3% x $30,0000. It should not be determined using 100% x $30,000. https://signalvnoise.com/posts/1941-press-release-37signals-valuation-tops-100-billion-after-bold-vc-investment https://signalvnoise.com/posts/1941-press-release-37signals-... https://www.businessinsider.com/bitcoin-97-are-held-by-4-of-addresses-2018-1 https://www.businessinsider.com/bitcoin-97-are-held-by-4-of-...

yieldcrv 4y ago
A lot of the public's lack of exposure to this is regulated by the US stock exchanges. Move over to other major stock exchanges worldwide and you'll see much more lax listing standards, such as a 1% float for the public and 99% for a single individual founder-shareholder. Low float is the greatest of all time. But investors and traders should be more discerning, avoid circumstances where it isn't favorable to you no matter what the "fear of missing out" involves.
- danielmarkbruce 4y ago
  What's a specific example of the 99% individual, 1% float?
  - yieldcrv 4y ago
    I'll see if I can find one, there were some extreme[ly amusing] examples on the Hang Seng Index and the Shanghai Shenzhen one, or maybe just those stock exchanges and not the index It all helped me realize that its all just contracts. If you get someone to agree then you can do it. Most of finance is cookie-cutter stuff that the company legal and the MBAs thought was familiar, but you can do anything if the other party agrees to it. Such as buy a share at a tiny float.
  - boeingUH60 4y ago
    In my country (Nigeria), there’s a publicly-traded conglomerate (BUA Group) where the founder and his son jointly own a 98% stake [1]. 1- https://nairametrics.com/2022/01/14/366674/ https://nairametrics.com/2022/01/14/366674/
    - danielmarkbruce 4y ago
      Interesting. What are they trying to achieve with these listings? It might be nice for a magazine article or something, but it seems like there is little practical use? For example, I don't imagine any bank being willing to use those shares as collateral, nor an acquisition target valuing those shares as a currency. Is it just ego?

yieldcrv 4y ago

A lot of the public's lack of exposure to this is regulated by the US stock exchanges. Move over to other major stock exchanges worldwide and you'll see much more lax listing standards, such as a 1% float for the public and 99% for a single individual founder-shareholder. Low float is the greatest of all time. But investors and traders should be more discerning, avoid circumstances where it isn't favorable to you no matter what the "fear of missing out" involves.

danielmarkbruce 4y ago
What's a specific example of the 99% individual, 1% float?
- yieldcrv 4y ago
  I'll see if I can find one, there were some extreme[ly amusing] examples on the Hang Seng Index and the Shanghai Shenzhen one, or maybe just those stock exchanges and not the index It all helped me realize that its all just contracts. If you get someone to agree then you can do it. Most of finance is cookie-cutter stuff that the company legal and the MBAs thought was familiar, but you can do anything if the other party agrees to it. Such as buy a share at a tiny float.
- boeingUH60 4y ago
  In my country (Nigeria), there’s a publicly-traded conglomerate (BUA Group) where the founder and his son jointly own a 98% stake [1]. 1- https://nairametrics.com/2022/01/14/366674/ https://nairametrics.com/2022/01/14/366674/
  - danielmarkbruce 4y ago
    Interesting. What are they trying to achieve with these listings? It might be nice for a magazine article or something, but it seems like there is little practical use? For example, I don't imagine any bank being willing to use those shares as collateral, nor an acquisition target valuing those shares as a currency. Is it just ego?