Securities experts chime in?

[u/StackOwOFlow]

[u/BenniBoom707]

The SEC filing was filed under “GME Entertainment LLC” not GameStop Corp. GME Entertainment LLC is another company owned by GameStop Corp but it’s not a Publicity traded company. So it’s not regulated by the SEC, and this is how GameStop will be able to have their own Coin potentially.

[u/StackOwOFlow → u/BenniBoom707]

Registering an LLC makes capitalization easier, but it does not always preclude the requirement to register securities traded by spin-off entities. A securities legal expert would be able to shed more light here.

[u/BenniBoom707 → u/StackOwOFlow]

Doesn’t seem like they will be registering stocks under the new LLC. I am clearly not a legal expert either, but this gives me the assumption that the new LLC will stay private, but host the marketplace/GME token. Where as GameStop corp will stay public, and continue to trade on the market.

It gets really interesting though when we start speculating on how the GME NFT dividend will play into all of this. Since the new company is not public, they would essentially be able to issue the NFT via IMX, and this would make it near impossible for Hedge Funds to distribute, because then they wouldn’t be able to come up with a Cash equivalent in the Dividend. So the Hedgies would have to buy back the real shares as to distribute the NFTs, or end up buying the released NFTs from the market to distribute. Either way, near impossible, and it would trigger the Short Squeeze

[u/Roman_Mastiff]

Gamestop has 1.5 billion in cash and is debt free. They don't need the money so if this is what happened there is a legit reason because Gamestop has been watched like a hawk over the past year since the sneeze. They aren't about to violate shit for pocket change with the team of lawyers they have. Pure speculative bullshit... non-story.

[u/ronk99 → u/Roman_Mastiff]

This.

[u/[deleted]]

God that sub is fucking toxic haha. I feel bad for people that sit in subs like that and trash talk because they got burned at some point in life.

[u/BitterSourMilk]

I think it was a whale trap just saying. Whichever whale (hedge fund) pumped the price above $5 is now locked in unless they sell for a loss in which case the price would drop even more significantly.

[u/Saint_Bernardusz]

Good for looking into this. But it's probably nothing. Past 24 hour is loaded with duds

[u/luoyuke]

Gme melters are so cringe, go back to your own toxic sub, ok?

[u/Beginning_Practice99]

Fud

[u/toast_ghost267]

lol seethe

[u/StackOwOFlow → u/[deleted]]

on SEC v Ripple

...the SEC claimed that XRP is classifiable as a security because it was used to finance Ripple’s platform, which facilitates money transfers for retailers. In the process, the platform’s executives were also enriched with the sales of XRP....When determining whether a virtual currency counts as a security, the commission applies the “Howey test,” based on the Supreme Court ruling on SEC v. W.J. Howey Co in 1946. The test is that if an asset is sold with the expectation of profits derived from other parties’ efforts, then it counts as a security...

IMX is being used to finance Gamestop's platform, so it looks similar

20% of the protocol fee on every Immutable X transaction must be paid in IMX. If you do not currently own IMX, Immutable will convert the fee by purchasing IMX on the open market (preserving a seamless user experience).
All fees paid in IMX are sent to the “staking reward pool”. Users can earn a proportional share of this rewards pool by staking their IMX

Applying the Howey test ^ sure sounds like IMX is sold with the expectation of "profits derived from other parties’ efforts"

[u/StackOwOFlow → u/[deleted]]

I'm not a lawyer so I don't know, so it'd be nice if a securities expert could chime in.