u/Ben47271

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Firstly. Auditors are not the companies accountants. They are a separate firm who works to ensure the books are correct when it comes to the audited financial statements.

If they were the companies accountants this would be a major conflict of interest and they wouldn’t be independent auditors.

Secondly. The firm saw no issues. It says so in black and white plain English in the filing. Countersigned by Nate.

Thirdly. There were no disagreements with the auditing team and the management.

Lastly they explicitly stated no one is lined up. The company is searching for their next auditing team.

Auditing teams are changed periodically. Is it amazing news? No not really. But is it a case of DVLT is a fraud, also no. They just need to ensure they have a team in place by the end of the year for the annual statements. If they flagged errors or fraud I’d run for the hills. They didn’t.

Doing some digging surrounding the meme coins I think I’ve uncovered the reason for them (and the delay in listing);

I’ll start with laying the foundations. The meme coins were/are a dividend. When someone borrows a share that has paid a dividend they are obligated to make the lender whole. There’s a few groups who borrow shares, leveraged longs, and short sellers.

It’s also important to recognise there’s a few types of dividend. The key ones are, property, cash, and securities. Meme coins fall squarely under property.

Due to this ALL short sellers have to pay the dividend to the lender. Plus leveraged longs, I’ll discount them for the purposes of this post but they also exist.

There’s a few recognised mechanisms for making a lender whole;

1. Purchase of the dividend (when it’s property)
2. Paying a cash fee
3. Argue that the dividend is impossible to get hold of

So far (I believe) the borrowers have been able to argue the dividend is impossible to source. But also impossible to determine a value for.
Now this is where Biconomy comes in, they’re a public, liquid, and regulated marketplace. This personally makes me believe the argument above is null and void.

Ok so what does this all mean?
Short sellers have to make lenders whole. They could either be forced to buy the meme coins, or pay a cash settlement equal to the market value of the coins. This is determined by brokers, my research suggests they typically require the actual dividend not a fee.

How can shorts get hold of the dividend? By purchasing them off a long, crucially one who is willing to sell. Now not all longs will have claimed the coins, nor will they all wish to sell. This creates a limited liquidity pool for these meme coins.

Analysing ETH-Scan 99% is held by “whale” wallets. These whales may assist with liquidity but it’s not a guarantee. I won’t speculate on how many coins are out there vs shorts, it’s not an easy calculation.

But regardless shorts may have to buy the meme coins. As some will remember DVLT charges a 30% fee on trades of these coins… shorts might have to not only buy these meme coins, but they also might have to bolster DVLTs balance sheet in the process.

All the above is all well and good. But it could be seen as market manipulation.

DVLT has an argument for this, they’re in the process of getting patents 19/445,241 and 19/452,873 (using tokenised dividends to expose and penalise naked/excessive short selling).
All the meme coins are is proof of concept for their patent application 😉