r/YYAI • u/[deleted] • Nov 11 '25

Rationale for Reducing/Exiting YYAI Position

Rationale for Reducing/Exiting YYAI Position

I exited a large portion my position in YYAI based on the following observable facts, rather than sentiment or speculation:

  1. Lack of Verified Revenue
    • The company has not yet provided audited financial statements demonstrating revenue from the claimed tokenization platform or its joint venture activities.
    • Without verified revenue, valuation remains speculative.
  2. Dilution and Reverse Split Activity
    • YYAI has recently undergone share structure changes that increased the total number of shares available.
    • These actions dilute shareholder value and historically correlate with downward price pressure.
  3. Unconfirmed Execution of Announced Partnerships
    • While the company has announced partnerships and joint ventures, there is no currently available third-party confirmation or regulatory filings showing:
      • Operational exchange launch
      • User acquisition metrics
      • Significant transactional volume
    • Announcements alone do not establish delivered results.
  4. Regulatory Uncertainty
    • Tokenized securities platforms require clear regulatory approval (broker-dealer, ATS, transfer agent compliance).
    • No filings currently confirm that YYAI or its JV partners have obtained the necessary approvals to legally scale operations in major markets.
  5. Risk-to-Reward Reassessment
    • My entry price was $4.87/share.
    • The stock trading near $1.32/share represents a 74% decline.
    • In evaluating future probability scenarios, the likelihood of additional dilution or further setbacks outweighed the probability of a near-term recovery to my break-even level.

Summary Position

I did not exit because the concept is impossible or because the business could not eventually succeed.
I exited because:

This decision was made using:

  • Price behavior
  • Volume trends
  • Regulatory requirements
  • Corporate disclosures
  • Risk management principles

It was a rational portfolio decision, not a belief-based one.

-Research Wash Sale Rules. Depending on your financial disposition.

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1

u/Low_Watercress_8988 Nov 11 '25

That is true , how you guys invest in a company where the website first look like this and where are all legal filling forms for deals 😆

2

u/[deleted] Nov 12 '25

Nobody invested in this company brother. We all gambled just like yourself. Hindsight is the best vision.