Popping bubbles as we see them. We express strong opinions. Not investment advice.

United States
Joined July 2017
Since the claims that garnered it “stablecoin” status were made, Tether subsequently revealed that its coin was backed only by a small percentage of traditional currency, and that much of its backing consists of holdings in commercial paper issued by unnamed counterparties.
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In response to our calls for basic transparency, Tether issued a cartoon, called us "cynical" and suggested that releasing more information on its backing may "discredit" itself.
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We support the crypto community, which is rooted in principles of openness and transparency. Tether's opacity undermines the movement it claims to be a part of. We thank everyone for their submissions as we continue to investigate.
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Since the claims that garnered it “stablecoin” status were made, Tether subsequently revealed that its coin was backed only by a small percentage of traditional currency, and that much of its backing consists of holdings in commercial paper issued by unnamed counterparties.
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Despite multiple regulatory sanctions over its alleged lack of truthful disclosure about its reserves, and despite Tether now having a $70 billion market cap, Tether still refuses to provide transparency to the public on its holdings.
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Disclosure: Hindenburg Research does not hold positions, either long or short, in Tether, bitcoin or any cryptocurrency.
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Given the recent events surrounding Trevor Milton and Nikola, we have a question for the company’s executives on today's Q2 2021 conference call. We look forward to a response. $NKLA
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BREAKING: $NKLA founder Trevor Milton has been indicted for making false statements. We commend regulators for acting expediently to protect investors and hold Milton accountable for his egregious lies.
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We also want to congratulate the brave whistleblowers who came forward when they saw something wrong, despite immense pressure to stay silent. This day would not have happened without their contributions. $NKLA
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Update: The SEC just filed parallel charges against Trevor Milton alleging he "engaged in a fraudulent scheme to deceive retail investors" and used his social media to "flood the market with false and misleading information about Nikola". slideshare.net/secret/CGruHH… $NKLA
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Around the $DKNG deal, SBTech’s founder spun off another gaming brand that also operated in banned markets, transferring it to his brother. The brand was behind a “massive Chinese operation”, according to a former employee, contrary to reps made to Oregon’s state lottery.
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That brand continues to operate in China despite the strict local rules prohibiting online gambling, according to our review of web infrastructure for multiple China-facing gambling sites. $DKNG continues to transact with the entity, according to SEC filings.
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$DKNG trades at a ~26x LTM sales multiple and a ~20x estimated 2021 sales multiple despite (i) no expectation of earnings for years, (ii) intense competition, and (iii) regulatory risk. The company posted net losses of $844 million in 2020 and $346 million last quarter.
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$DKNG insiders have dumped over $1.4 billion in stock since the company went public a little over a year ago, with SBTech’s founder and current $DKNG director Shalom Meckenzie leading the pack, having sold ~$568 million in shares.
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Despite a rocky track record prior to taking $DKNG public, the company’s SPAC sponsors ultimately received 9.3 million shares, worth around $114 million at the time, in exchange for a token $25 thousand contribution.
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We spoke with several industry experts and competitors who questioned the viability of $DKNG 's model of aggressively burning cash on promotion and marketing in order to acquire customers in the near term, despite a lack of evidence of long-term customer brand loyalty.
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$DKNG has been heralded as the key SPAC 'success story'. We think it represents the dying embers left by yet another Wall Street loophole. hindenburgresearch.com/draft…
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