25 de novembro de 2022 15:33:16 ART
Gullybet faced serious losses in stock market. Between January and March 2018, the value of shares in Gully Company Limited sank from $2.70 to $0.06. That’s a decrease of over 98%! What happened? The answer is alarming, but not surprising given recent market trends: insider trading, fake news and unverified digital wallets. Seemingly out of nowhere, Gully dropped by 40% on February 5, 2018 – the same day that a video was posted on their official YouTube channel announcing a “new management team” for Gully. They also announced that their company would be listed on the OTC Markets group as an alternative to their current NYSE listing (which had been suspended), that they would be operating under a new ticker symbol (from GLYVF to GLUF) and that there would be two new independent directors replacing all previous board members...
Insider Trading
First and foremost, let’s begin with the very basic concept of insider trading. This happens when a person with access to non-public information trades securities based on that information. The Securities and Exchange Commission (SEC) has strict rules and regulations governing insider trading, but they happen all the time, and they are very hard to detect and prove. The Gully team knew that they would definitely fail to meet their projected revenue targets and that their investors were very likely to lose a lot of money. So, they decided to cash out their stocks. What we can see in the chart below is that the value of Gully shares began to rise almost immediately after the new management team came into power. Gully’s chief marketing officer (CMO) and chief financial officer (CFO) sold their shares for $2.05 per share. The very next day Gully’s new chief executive officer (CEO) who allegedly was unaware of the change of management, sold his shares for $2.10 per share.
Unverified Digital Wallets and Fake News
The very same day that Gully announced a new management team, they also announced that they had formed a partnership with VISA, who would be paying them a $100 million licensing fee. VISA quickly responded to the claim, saying that they had never heard of Gully and that such a licensing fee was unprecedented. Gully later deleted the VISA claim from their website and YouTube videos, but the damage was already done. Gully also claimed that they had partnered with a Swiss bank and that their digital wallet was verified by the Swiss government. This claim was found to be false once again. Gully also claimed that they had received a visit from the SEC, who had praised the company for its transparency and honesty. This claim was also later found to be false.
The Basics of Gullybet: a Company in Trouble
Gullybet is a company that develops and operates online sports betting and casino games. They offer their customers a wide range of online games and sports betting options. Gullybet offers their user a wide array of sports betting options that include tennis, basketball, and football. Users can bet on teams, games, or score predictions. Gullybet’s revenue comes primarily from two sources. First, there is the revenue they make from the online games and sports betting they offer. Second, there is revenue they make from the “rake” they receive from the fees charged to bettors. When you place a bet, you pay a fee to the company to cover their operational costs and to earn a profit. The amount you pay is the “rake.”
Final Thoughts
The fall of Gully bet is a cautionary tale for investors and consumers alike. Insiders cashed out of their overvalued Gullybet shares and moved on to the next venture, likely unscathed. Gullybet investors, many of whom were ordinary people looking for a way to earn passive income, saw their savings evaporate almost overnight. Gullybet consumers (customers who made bets) saw the value of their winnings shrink significantly after the fall in share value. Despite being a cautionary tale, the fall of Gullybet is filled with lessons. Investors should always be skeptical of company claims, as they are often exaggerated or outright false. Consumers should always verify that they are interacting with a legitimate company, and they should exercise caution with their personal information.
