A report dated December 4, 2022 details how FTX-based synthetic stocks can be used to manipulate the value of AMC stocks. In May 2021, FTX offered 36 tokenized shares, but speculators believe it is questionable whether the firm actually owns real shares in the first place.
FTX listed 36 synthetic shares and minted hundreds of thousands of tokenized shares, prompting questions about whether the firm actually owns the shares
FTX has been under the microscope since the exchange collapsed in the first week of November 2022. Since then, there has been a lot of data to process and new data released. On Sunday, A report Details that FTX-listed tokenized shares can be used to “manipulate the price of AMC shares”. The chainsaw.com publication and its report indicate that while FTX’s terms of service state that the firm’s synthetic stocks are backed 1:1, this may not be the case.
“FTX noted the twisted AMC token[s] to trade on a synthetic derivatives trading platform,” Chainsaw’s Twitter account details. “[Etherscan.io] shows that there are currently 545,000 synthetic AMC tokens on the Ethereum blockchain. FTX claimed that the main shares are held in the asset manager [CM Equity AG],” adds Chainsaw’s tweet. The publication’s Twitter account continued:
However, CM Equity’s latest correction shows that the firm ended its relationship with FTX in December 2021, suggesting that FTX lied about holding AMC tokens for the better part of 2022.
Report Points to FTX Terms of Service Saying: ‘Purchasers of Fractional Shares Have No Claim to Delivery of Principal Shares’
Additionally, thechainsaw.com published another report suggesting that Gamestop and Tesla shares may also be manipulated. Additionally, researchers note that a leaked FTX balance sheet published by the Financial Times ( FT ) shows that the company only owns Robinhood ( HOOD ) shares. There is no documentation (currently) showing that FTX actually owns any of the 36 tokenized shares listed.
Additionally, during Sam Bankman-Fried’s (SBF) interview with Mario Nawfal Twitter locations, speculators accused SBF of describing a system where tokens and BTC could be printed out of thin air. Additionally, while leaving SBF Nawfal’s Twitter Spaces interview, one person accused FTX and Alameda of printing tokens out of thin air to manipulate the value of their project’s token list. Moreover, thechainsaw.com reporter Tom Mitchelhill says that FTX “deliberately lied” about the tokenized share offering.
“Despite the FTX website’s clear claims that investors can redeem their tokenized assets for principal at any time, take a deeper look at FTX’s terms of service for tokenized shares and the Key Information Document: “Purchasers of Fractional Shares require delivery of no principal” wrote Mitchelhill. “This ultimately means that FTX has knowingly lied and misled customers on its official website, in direct violation of its terms of service.” Mitchelhill’s report further suggests that “with respect to their listing and retention inconsistencies” can be applied to everything FTX offers.
What do you think about the possibility that FTX’s tokenized shares are being used to manipulate real share prices? Let us know what you think about this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Refusal: This article is for informational purposes only. This is not a direct offer or an offer to buy or sell or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use or use of any content, goods or services mentioned in this article. does not carry