House of Cards: Lemmings entrust crypto asset broker with $200 million of hard earned real money!
Who in their right mind would entrust a crypto exchange with $200 million of their own money, or invest in its stock? Well…….
There is nothing like a shift in global geopolitics to polarize the behavior of investors and traders.
Whilst the sensible holders of surplus capital buy tangible and transferable assets such as gold, and look to invest in property in regions of the world which do not have governments that keep locking entire nations down and paralyzing their economies without reason or end, others are reaching for the digital asset placebo.
As if it is not enough of a warning that today’s over-inflated prices of false currencies has been littered with collapses and losses, as per XRP’s bottoming out last week, but for the past ten years, anyone wishing to throw their money away has had the chance to do so via any number of maverick-led and often fraudulent false and non existent ‘currency’ methods.
Ten years is a very long time, and certainly long enough for the general public to understand that a non-existent currency traded on a non-existent exchange is the equivalent to snake oil, only with massive self-imposed volatility and leverage, making the inevitable losses more significant than simple, old fashioned snake oil.
It took a very long time. Long enough for some retail brokers to get themselves involved in trading cryptocurrency CFDs which in some cases cost them tens of millions of dollars in a short time. FinanceFeeds is privy to inside information that showed losses at two firms of $17 million and $40 million respectively within one week at the end of 2017, one of which was a publicly listed entity which hid this unfortunate scenario by reporting the entire year in one quarter, presumably to avoid shareholder furore.
Then came all the ICO fraud, and inability to withdraw from various ‘exchanges’ that the proponents who all came out of nowhere with no industry expertise and were uttering the word ‘crypto’ at every opportunity with almost foaming-at-the-mouth obsession, all of which are now either under sanctions, in jail or on the run.
Surely by now, with the penny finally dropping at the FCA, the world would finally begin to understand that any digital currency is a fraud, yet here we are, at the end of 2020, and Bitcoin values – which are false valuations of a false and intangible currency – have been soaring, and once again the talking heads of the media have been encouraging the lemmings to jump from the precipice.
Today yet another example of head-in-the-sand absurdity has made its presence felt, this time as Voyager Digital, crypto-asset broker that provides investors with a turnkey solution to trade crypto assets, today announced milestone growth, surpassing $200 million in assets under management (AUM), up 100% from $100 million at the beginning of November, and up 40x in the past 12 months.
This accelerated growth in AUM is led by unprecedented levels of net daily deposits, with over $50 million in total net daily deposits since the beginning of November, and averaging nearly $1 million of average net daily deposits for this same period.
Voyager Digital is listed on the Canadian Securities Exchange (CSE) which demonstrates two interesting matter that should be considered by executives in the FX and CFD industry, those being that aside from the London Stock Exchange, NASDAq and NYSE, clearly very little due diligence relating to listing criteria exists if banal crypto exchanges with no intrinsic value which could wipe the stock portfolio of public investors within a second, and the latter issue being that FX brokers with vast expertise and long term market presence are unable to list in many cases due to their reliance on third party platforms such as MetaTrader.
There are brokers in first tier regions which make revenues of over $500 million per month yet cannot list their stock or sell their business because their intellectual property is all on MetaQuotes servers.
On this basis, purely because Voyager Digital has chosen a fringe exchange and has its own platform therefore owns its own intellectual property, it is able to list risky shares and allow an unsuspecting public – many of whom think the word crypto signifies some high tech route to the future, which it absolutely does not – to invest in the stock of a provider of a non-existent market.
When the inevitable happens and the realization that snake oil does not exist sets in, who will compensate shareholders for their losses?
“Voyager is firing on all cylinders as we enter 2021,” said Steve Ehrlich, Co-founder and CEO of Voyager. “The rapid pace of increase in net daily deposits is a testament to the success of our platform and the support from our community. AUM is a key metric for the performance of our business, and we are excited that users have placed their trust in our platform which allows us to generate greater returns and thereby reinvest to bring new products to market faster, including our desktop platform, debit and credit cards, and margin offerings.”
The company asserts that 2020 has been a milestone year for the crypto-asset space with many well-known institutions either diversifying into Bitcoin or providing greater access to digital assets.
Voyager also believes that this continued momentum confirms that digital assets are a legitimate, standalone and investable asset class that is here to stay, providing investors with the ability to combat inflationary pressures from continued debasement of traditional fiat currencies. This evidence suggests that digital assets are starting to rival more established asset classes such as equities, fixed income, commodities and precious metals, in particular the $9 trillion traditional gold market.
Why do they need to emphasize that? You don’t see gold dealers or real estate agents trying to justify the existence of their asset classes and attempt to convince themselves of their legitimacy to rival proper assets.
“We’ve positioned Voyager with a leverageable technology platform ripe for expansion both internationally and product wise, with Canadian and European expansion planned in 2021,” continued Mr. Ehrlich. “We look forward to bringing Voyager’s regulatorily compliant and transparent platform to the masses in 2021″ said Mr Ehrlich.
It will be a different story when $200 million of client money disappears and those who invested in the stock of the company are left with nothing.
It would be interesting to understand whether this massive rise in trusting no-mark crypto exchanges with hundreds of millions of dollars and expecting to make a secure profit from airware such as this is the preferred method of those who advocate lockdowns and believe the government confidence trick which tells people that if they dare go outside their home and earn a living via the proper and normal means, they’ll be struck down.
This would perhaps be more than a coincidence given that some of the most sinister governments in the world along with the socialist European Union are looking at introducing their own digital currency enabling them to control and rob people blind at state level.
And would every 19 year old male with a moustache that looks like an earwig kindly attempt to resist the urge. You’ll be thankful you did.