r/Buttcoin • u/bananacrazypants • 4d ago
CHAD - even dumber than MSTR
https://www.ft.com/content/c84a0307-714c-4279-9073-caad985cce63
CHAD is a perpetual preferred stock not dissimilar to the death-spiral unconvertibles issued by Strategy, Michael Saylor’s bitcoin speculation vehicle. CHAD’s issuer is DeFi Development Corp of Nevada, a publicly listed digital asset treasury company whose pitch is that it’s like Strategy but for the Solana blockchain. Solana is an Ethereum alternative that facilitates DeFi projects, the highest-profile of which is Donald Trump’s memecoin. Its native token, SOL, had a 96 per cent drawdown in 2022 and is currently 60 per cent off its all-time high.
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On the offer closing, CHAD’s keepers pledged to set up a dividend reserve to cover 12 months of monthly payments using “existing cash and cash equivalents, financial instruments and/or digital assets”. Once this reserve pool is dry, it says, CHAD dividends would be funded “primarily through additional capital-raising activities, including, but not limited to, [equity line of credit] agreements and at-the-market offerings of our common stock and the CHAD Stock”.
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The only reason we’re choosing to draw attention to CHAD is because, to reiterate, it trades on Nasdaq’s Capital Market. This is the exchange’s entry-level tier for small and young companies, but it applies the same baseline governance standards as Nasdaq’s upper-tier Global markets. There’s no small-company waiver either on Nasdaq’s statutory duty to vet prospective listings and maintain market integrity.
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u/Lurky-Lou 4d ago
I remember when the scams were offering 13% as the daily dividend
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u/Trick-Club-6014 4d ago
I like the repeated fl references to Nasdaq like they think this gives them some sort of legitimacy.
All that does for me is make me question the legitimacy of Nasdaq
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u/loquacious HRNNNGGGGG! 4d ago
That picture is utterly deranged nightmare fuel.
Dudes? If you think you need to look like that through looksmaxxing or whatever, or that women want anything that looks like that, you really need to change your social media and podcasts or something because that's just fucking cursed.
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u/rokman 4d ago
The website is great, it does everything in its power to convince you that you’ll rich with daily dividends and lambo when calculators, it literally took me 5 minutes to figure out they were ‘invested’ in to find out it was a Solana mstr clone.
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u/AmericanScream 4d ago
"ChatGPT, make a clone web site of MicroStrategy using a Solana shitcoin, then provide a list of countries with no extradition treaties."
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u/bananacrazypants 4d ago
With Trump in charge, extradition doesn’t matter. There are no rules in the US any more, especially if you can afford a trump bribe.
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u/Mo0 4d ago
Okay so why are this and MSTR both doing daily dividends? What is the reason they’re seizing on this?
I’m assuming it’s something stupid but I don’t know enough about finance to know what
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u/bananacrazypants 4d ago
The rubes see it and think they’re getting something extra for free. That’s all it is.
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u/pxer87 3d ago
They're going to daily because their investors asked for it. Theoretically it brings more liquidity in the product which makes it more comfortable for larger retail traders, funds and institutions to take positions. It also slightly increases the annual yield for those who re-invest the dividends. The downside is there is a bit more in administrative costs. I do think some traditional income equities will see daily dividends as an opportunity in the future and likely follow suit. In an increasingly digital world, public equities and brokers are able to do things more easily and more cheaply. Case in point is the inevitible tokenization of equities. Will there be failures and mistakes made? Assuredly. Is it how finance is moving? Definitely.
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u/Mo0 3d ago
Thank you, you got at what I was trying to figure out. So if I’m reading this correctly, at least in part the historical use of quarterly dividends is more of a holdover from how it’d be logistically a nightmare to do it more frequently in paper? I read a book recently that said the cadence of… I think it was futures contracts in Chicago was in part decided because of how many blackboards they could fit in the room to track them, so this sounds like that.
(I find this kind of arcana about finance fascinating, lol)
The side note is since I’ve seen these things that are noted scams doing it, and MSTR in particular was hyping up how they’re one of the only ones, I was like “okay so is this somehow skeevy in a way I don’t understand?”
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u/loquacious HRNNNGGGGG! 4d ago
Because it's high frequency online gambling with extra steps, and something that (might) pay out daily is attractive to some people because of how tight their income and cash flow really is.
I have seen gig economy workers doing crazy shit with multiple coin systems shuffling them around to glean a few extra bucks and waiting for a fiat payout from an exchange because it meant they could order McDonald's instead of having ramen (or sleep) for dinner.
This kind if arbitrage and day trading seems to be really common with rideshare drivers where they will have like 3-4 phones going and they're literally doing manual high frequency crypto trading for dollars while driving and yelling at price tickers like it's the fucking Superbowl and they have six figures on the line.
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u/OrbitalLemonDrop 4d ago
It's funny how out of touch the whole "chad" thing has become with regard to who a woman would actually want to have sex with.
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u/YellowBananas123 4d ago
A true Chad would never end a sentence with a preposition.
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u/AmericanScream 4d ago
Bernie Madoff has entered the chat
Normally we don't allow active shitcoins to be listed here, but this is so stupid, if you fall for it, you deserve to get screwed.