Short Squeez
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🍋 Kimmy Krypto

🍋 Kimmy Krypto

Short Squeez
October 04, 2022

Together With

"I don't identify as an entrepreneur, I identify as a survivalist" - Daniella Pearson

Good Morning! New York City secured $1 million in federal funds to turn vacant newsstands and other empty spaces into hubs for food-delivery workers. Investor worries surrounding Credit Suisse are rising as the stock fell 10% - Jim Cramer says CS is not the next Lehman so get ready, folks. The United Nations called on the Fed and other central banks to halt rate increases amidst fears of a global shutdown. And Sony announced they plan to produce 2 million units of their new VR headset.

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1. Story of the Day: Kimmy Krypto

The SEC announced charges against Kim Kardashian yesterday for her role in a ‘pump-and-dump’ crypto scheme. Kim, who hyped up the crypto token ‘EMAX’ and advertised the coin on her Instagram, failed to disclose she was paid $250,000 to promote it.

Kim joined forces with Floyd Meriweather and retired NBA player Paul Pierce in promoting EMAX tokens on social media in June 2022. A class-action lawsuit alleged Kim and company had improperly created substantial demand, ultimately allowing investors to sell their tokens for a significant profit. A mere month later, the EMAX token price had fallen by 98%.

The SEC announced a resolution culminating in Kim paying a $1 million penalty as well as an additional $260,000 in disgorgement fees to settle civil charges. Regulatory scrutiny of the crypto industry has made significant waves over the past several months, and agencies such as the SEC are especially skeptical of celebrity crypto endorsements.

Short Squeez Takeaway: US regulators are coming for crypto. Amidst a record $30 billion flooding into the digital asset industry last year coupled with disgruntled investors during a crypto winter, regulators are treating crypto ‘pump-and-dump’ schemes similarly to how they would treat equity ones. The SEC’s response to Kim’s crypto promotions drops the hammer on how they perceive social media advertisements; neither celebrities nor Instagram posts are immune from regulatory scrutiny in their eyes.

2. Markets Rundown

US stocks kicked October off on a strong note Monday after the S&P 500 and Nasdaq Composite closed out their first three-quarter losing streak since the 2008 Global Financial Crisis and the Dow logged its first such span of losses since 2015.

Movers & Shakers

(–) Viasat ($VSAT) +27% after striking a deal with L3Harris to sell its tactical data links business(–) Peloton ($PTON) +8% after the company announced it will put bikes in all 5,400 Hilton-branded hotels(–) Tesla ($TSLA) -9% after the company announced lower Q3 production than anticipatedPrivate Dealmaking

Uniswap Labs, a decentralized crypto exchange, eyes $200 million in fresh funding
ShopBack, an e-commerce rewards app, raised $80 million
Grow Therapy, a platform for therapists, raised $75 million
Kate Farms, a plant-based smoothie manufacturer, raised $75 million
Crypto banking startup Juno raises $18 million
Blowfish, a web3 security company, raised $11.8 million

3. Top Reads

Why you shouldn’t hate the strong dollar (Axios)
Fed has given short sellers reason to push the market lower (CNBC)
September was worst month for Dow since March 2020 (CNN)
What’s happening with the bond market? (YF)
The race to hand out credit scores (Axios)
There’s more upside than downside for long-term investors (YF)
Amazon launching dedicated hub for its affordable shopping options (TC)
Expect more gloom but less doom in Q4 (CNN)
Rising butter prices could pose threat to TikTok’s butterboard trend (YF)
Marlboro Maker Altria ends relationship with Juul (Axios)

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4. Book of the Day: Quit

Business leaders, with millions of dollars down the drain, struggle to abandon a new app or product that just isn’t working. Governments, caught in a hopeless conflict, believe that the next tactic will finally be the one that wins the war. And in our own lives, we persist in relationships or careers that no longer serve us.

In Quit, Duke teaches you how to get good at quitting. Drawing on stories from elite athletes like Mount Everest climbers, founders of leading companies like Stewart Butterfield, the CEO of Slack, and top entertainers like Dave Chappelle, Duke explains why quitting is integral to success, as well as strategies for determining when to hold‘em, and when to fold‘em, that will save you time, energy, and money.

Whether you’re facing a make-or-break business decision or life-altering personal choice, mastering the skill of quitting will help you make the best next move.

“In the face of tough decisions, we’re terrible quitters. And that is significantly holding us back.”

5. Short Squeez Picks

6 techniques that will help you fall asleep in less than five minutes
4 ways to become a mentor and change someone’s life
Scientists finally know why we get distracted - and how to stay on track
21 one-time decisions that will save you hundreds of hours in your life
The journey from potential to useful

A Message from The Commons: Supercharge Your Career

Tired of long hours and those late-night plsfixes? Looking for flexibility and autonomy at work?

You should consider a Strategy & Operations role in tech and the best place to start is The Commons Core Sprint. It’s a part-time, team based learning experience built for working professionals.

In the 7 week Sprint you’ll learn: