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The Path to Reclaiming American Finance: A Call for Innovation and Empowerment

Empowering the Common Investor: Forging a New Path in Financial Markets

By Jeremy FrommerPublished 11 months ago Updated 11 months ago 4 min read
Top Story - July 2023
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In the midst of sparsely filled giant office buildings in the financial district and the eerily quiet atmosphere of the Upper East Side, a change is brewing. The once thriving capital markets, which served as the engine of innovation, have been compromised by a system that no longer works in the best interest of the common investor.

It is time for a rebellion, a collective effort to correct the course and rebuild a financial system that truly serves the needs of all Americans. As we embark on this journey, we must eliminate the structures that have held us back and embrace new technologies and ideas that empower individuals and promote innovation. Together, we can make American finance great again.

The Need for Change

The current financial landscape resembles a rigged playing field, one that continuously churns the common investor across the financial food chain. Each day, several major problems in our system work together to manipulate the everyday investor. Here are a few examples:

  1. Predatory lending practices: Toxic financial products are self-fulfilling prophecies that destroy companies, forcing them to continuously be diluted and deteriorate value.
  2. FTD (Fail-to-delivers): This occurs when one party in a trading contract does not deliver on their obligations, causing significant disruption in the market. The market-maker exemption directly leads to naked shorting.
  3. Abusive naked short selling: Some traders manipulate the market by selling stocks they do not own or have not borrowed, thereby artificially driving down the stock price.
  4. Collusion among funds: Large funds sometimes collaborate to move markets in ways that benefit them but harm the common investor.
  5. Market-making spoofing: This deceptive trading practice involves placing orders with the intent to cancel them before execution, thereby manipulating market prices.
  6. Exploitation of regulatory exemptions: While there are certain regulatory exemptions designed to facilitate the smooth operation of the market, these can be misused by savvy investors, leaving the average individual investor at a disadvantage. The most recent and notable example of this, the early trade-halt on $MMTLP.

It's important to note that the regulatory bodies tasked with overseeing these markets, and even Congress, are aware of these issues. They have discussed them openly and yet, despite more than three decades of debate and proposed solutions, the problems persist.

The Rise of a Rebellion

In this era of uncertainty, a sense of rebellion is in the air, particularly in the small and micro-cap public stock markets that have been devastated. Those investors who have been threatened by the status quo are rising up to challenge it. It is the very people affected by this broken system who are leading the charge for change. We can see this rebellion taking shape in various forms, propelled by technological advancements and innovative platforms that are reshaping the landscape of finance.

This rebellion is taking root in multiple facets of the financial landscape, fueled by an unusual blend of social media activism and speculative investing. The rise of meme stocks is the phenomenon that underscores the power of collective action. Born from online communities and forums, the common investors are turning the tables, using the strength of their numbers and the virality of social media to drive up the price of undervalued and abused stocks. This form of crowd-sourced investing has not only democratized the markets, but also highlighted the immense potential of communal influence.

The once distant world of finance is now accessible at the touch of a screen, and investment strategies are being shared, dissected, and honed within digital communities. These advancements are redefining the very fabric of finance, heralding an era where the collective voice of individual investors can no longer be dismissed or ignored.

Democratizing Investments

Embracing this wave of change are progressive platforms like DealMaker, who are leveraging Regulation CF (Crowdfunding) to make American investments more accessible to a wider audience. This democratization of investments allows individuals from all backgrounds to participate in wealth creation, cultivating a sense of shared prosperity and ownership.

The Path Forward

Over the last few months, Creatd, Inc. has been working towards a plan and strategy to increase shareholder value while reducing dilution.

Here are the three initiatives we are pursuing:

  1. Creatd, Inc. ($VOCL) is expected to open a Reg CF round of financing later this month. It will be among one of the first public micro-cap companies to do so. This $5M round will allow anyone to invest, including our 2M Vocal creators, in a new participating preferred at an original issued discount and allows them to partake in the company's revenues as a quarterly dividend. This round is non-dilutive to the common stock $VOCL, is convertible at far above current trading prices, and will be closed at the earlier of the company's discretion or completion of the $5M raise.
  2. We're preparing to publicly offer shares of the OG Collection, Inc. (a wholly-owned subsidiary of Creatd, Inc.) on the Upstream platform. This will mark the first material asset sale and special dividend by the company. We expect the audit to be completed by July 17th, 2023, which will allow us to rapidly move forward on the OG capital raise and special dividend distribution.
  3. We are preparing to sell off Creatd Ventures, the company's consumer packaged goods division, as we strive to consolidate our focus into our core technology platform Vocal, which accounts for the vast majority of the company's revenues.

I can't emphasize enough how crucial these paths are for our company and shareholders. It's the most sensible way forward to see a recovery of our common stock. We will be creating an environment for the organic appreciation of our common stock, which again, remains undiluted by these transactions.

Moreover, our success could help us sidestep the need for a reverse stock split, like so many micro-cap companies are forced to do. We're not just changing our own course—we're setting a new playbook for a more investor-centric approach in the financial landscape.

Your questions, thoughts, and insights are invaluable to us, and we invite you to share them. Leave your comments and questions below, and make sure to join me on my Twitter Space on Tuesday, July 11, 2023.

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About the Creator

Jeremy Frommer

Chairman & Co-Founder of Creatd ($CRTD) and Vocal. We have much work to do together.

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Comments (12)

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  • Justine Crowley7 months ago

    Insightful and informative. Crowdfunding and Peer to Peer lending will grow. Derivatives are a sinking ship in Australia anyway. CFD's were the ultimate. Trading options by writing naked put options (like selling insurance) was once good, but not now. Being conservative is key. Owning real stocks, and not taking out any margin loans to fund them is the ultimate. (Have had those pesky margin calls in the past, even with Options trading.) From 2024, I would be wary of crypto (most of it anyway).

  • Shanon Norman9 months ago

    Jeremy, this is a well written, insightful, and informative article. Thank you for sharing this information. I think you hit it right on the head regarding economical issues and how consumers and investors are feeling at this time. So glad I read this to see that I'm not the only one who understands the tense feelings people are having regarding investments. Keep doing what you do.

  • I have spent much time as an accredited investor and even with a heavy financial interest in any stock or option, I have always been subject to the indiscriminate nature of the brokerages doing as they please. At some point, I realize, the market is gambling, that's it...however, you want to frame it, it is gambling. Now, that doesn't mean to go to the Blackjack tables and blow $3 million. It means to just be aware of what your getting into and how you can get out, when you want to get out. Check your brokerage firm to the 'nth' degree and do extra due diligence. Remember, there is always someone in the shadows that is out there trying to scheme and take your money in the market, so they can sit back on a beach somewhere and drink Pina Coladas.

  • Shanon Norman10 months ago

    I think this is an important discussion for civilization and society. I don't agree with some of the ideas presented in this article and I can explain why. However, I do appreciate the conversation. My bottom line is that money is neither the problem or the solution. I will write further on this. Thanks for sharing this information.

  • Mohamed Hasan11 months ago

    trilling a day

  • Thavien Yliaster11 months ago

    And my comment has been deleted. Well, I guess that's what the spam filter does when You add in too many cash dollar symbols. Let's try this again.

  • This comment has been deleted

  • Babs Iverson11 months ago

    Impressive as well as information!!! Outstanding!!!♥️♥️💕

  • Abdul Jamil Nasir11 months ago

    good

  • J. S. Wade11 months ago

    Your resilience is as encouraging as it is commendable! Your observations, thoughts, and strategy are impressive. Thank you for the transparency.

  • Dana Stewart11 months ago

    Vocal has become such a special place for creatives, creators can hone their craft while being immersed with other creatives doing the same thing. Your transparency on the future success of the company is admirable and appreciated. I would be interested to learn more about the crowdfunding initiative- specifically DealMakers onboarding process for investing. Do you have a time slot for tomorrow’s Twitter space call?

  • Naveedkk 11 months ago

    Congratulations on your Top Story, well deserved Jeremy Frommer

  • Donna Renee11 months ago

    Very interesting, I like the transparency and info about the company’s plan and path forward.

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