iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
17,003 Blog Posts

Remember When All Chinese Stocks Were Frauds?

It wasn’t long ago when Chinese companies traded in America, whose CEOs living in mansions dotted along Long Island’s coast, ransacked shareholders on a daily basis beset by allegations of fraud. There were annoyances like Carson Block out there, shorting just about every hot Chinese stock, claiming they were laughable frauds — and he was right.

But not anymore. A once disgraced genre of investing dubbed “chicoms”, or what I like to call “Chinese burritos”, are now celebrated on Wall Street. After all, why the heck not? Who is paying attention to the accounting at these companies anymore? Carson Block has since cashed in and now runs a hedge fund, and everyone else is too enamored with the glamor of bitcoins and all of the little ICOs are are issued each and every day to even begin to care about burritos.

The crypto space has gone from just Bitcoin to over 1,100 ICOs under the Motherly umbrella of Ethereum. Some like to dismiss the ICOs as a clown show, something wholly unimportant to the bigger, more interesting, aspect of crypto-investing, which is an alternative to fiat currency. On the surface, it all seems like a grande idea — cut out the middle guy and let the people transfer money, to and fro, at their leisure. No need to concern yourselves with IRS reporting or AML laws — be free, and do as you like. Nothing can go wrong — because government can’t control the people. Right?

Regarding the unimportant ICO market, festooned with entertaining coins like RARE PEPE’S, DOGECOIN or FUCKTOKEN — they all clear under Ethereum, not Bitcoin. That’s important because, as we speak, Bitcoin only makes up 55% of the crypto market and is becoming less important with each passing day. ETH and the rest of the gang comprise of 76 billion in market cap, spread out across 1,100 tokens. I like to think of this set up in dot com bubble terms, where Cisco was Bitcoin, adding up to a then record $500 billion market cap, and then there was everyone else — hundreds of little shits floating around making people rich.

But then they made people poor, ruined an industry for nearly a decade, and became the laughing stock for all eternity. Sure, smart money is weighing into the cryptos now with a heavy foot — because that’s what ‘smart money’ does — chase alpha — pretend to know the future, get fucking ransacked. Not smart anymore. LTCM, Pershing Square, Highland Capital, Bernie Fucking Madoff.

Happy trails.

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11 comments

  1. awanka

    You have to explain where the term “Chinese Burrito” came from. I feel like I’m missing out on a delicious inside joke.

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    • Dr. Fly

      Pretty simple. It was at a time when Chipotle was getting popular and I referred to all Chinese companies as burritos, mysterious entities with ingredients unknown wrapped in a nice edible burrito.

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  2. gappingandyapping
    gappingandyapping

    BTFDCL! Now where can I get a HELOC that I can dump into high beta stocks?

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  3. gerryr

    Hi Fly,

    Will you be coming out with a book that combines all 3 parts (if you get that far) or will they all be sold individually?

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  4. numbersgame

    If you want to know about Bitcoin, Etherum, ICOs, etc, I’d suggest this website:
    https://blog.chain.com/a-letter-to-jamie-dimon-de89d417cb80

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    • bob smith

      “They have volatile and uncertain governance…”

      That pretty much sums up why I’m out… and staying that way…

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  5. ironturd

    Every investor in Chinese burritos know what are signing up for. Every crypto buyer knows what they are signing up for.

    Only crypto market participants are tech folk + VC money, some new HF money. UHNWs just starting to diversify, will not got bigger than 1-2% asset class for many years, any crash could be handled easily by the market, possibly bring the next big bid + consolidation. As a young market, probably lots of big trading opportunities along the way but by all means buy HMNY as your lotto ticket vs new technologies.

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    • bob smith

      “Every crypto buyer knows what they are signing up for.”

      I stopped reading your delusional post after I read this.

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      • ironturd

        This is a riff on Trumps new catchphrase, “He knee what he signed up for”, heir to “You’re fired” and “Many people are saying”, idiot.

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  6. chuckem

    When everything is fraud, nothing is fraud.

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