EPISODE 5: THE CHIP SHOPS

Better to go out the window than hope for the jackpot

THE PROMISE (2014)

The cigar on the terrace is not even half smoked when Andreas grins.

„Another story,“ he says. „I bought a share 10 years ago. Today you call something like that a Canadian chip shop.“

ChromedX Corp (CSE: CHX)

The pitch sounded fantastic: A portable blood analyzer that combines blood gases, electrolytes AND CO-Oximetry in ONE device. Perfect for hospitals, emergency services, field doctors. Patent pending. Huge market ($1.8 billion projected!).

In 2014, the world went crazy for the next medical miracle device. And ChromedX promised just that.

Andreas‘ Entry: $0.20 CAD

THE PUMP & DUMP CIRCUS

„They occasionally went up when certain newsletters advertised,“ explains Andreas.

The pattern was always the same:

Day 1: Newsletter published - „The next 1000% opportunity!“
Day 2-3: Retail buys like crazy, share price explodes +50-100%
Day 4-5: The fast traders sell at a profit
Day 6-10: No more news, share price falls back
Day 30: Next pump

„People who see this as Short-term trade read the newsletter, buy immediately, sell after 2-3 days - they made money,“ explains Andreas. „Some did it systematically. In at $0.15, out at $0.25, two days later. +67% in 48 hours.“

He takes a puff of the cigar.

„The problem: I didn't have ChromedX as a Trade seen. I have it as Investment seen.“

The fatal difference:

As TRADE: Use newsletter pump → 48h in/out → +50% profit → Continue to next
As INVEST: Believe in the story → Hold on for months → „There's more to come!“ → -50% loss

„Both are possible and OK on the stock market,“ says Andreas. „It's a decision. Do I want to be in the story? Do I want to have a bit of a company like AG or Apple, where I know there's a real business behind it? Or do I want to trade chip shops and sit at the box all the time and see what happens with ChromedX?“

„You can earn money with both - if you know what you are doing, are disciplined and are prepared to accept failure from time to time.“

The lesson:

Newsletter pumps work for Trader who understand the game and are in/out quickly. But they are poison for Investors who believe in the story and want to keep it going for years.

HUT 8 or Alamos Gold do NOT need a newsletter. They have real businesses. You can invest and sleep there.

ChromedX needs newsletters to have any volume at all. This is not an investment. This is a 48-hour casino.

„I played the game wrong,“ says Andreas. „They dropped to around $0.10 at one point. I diligently reduced the price. Because I thought: in the long term, this will work.“

Classic mistake: Trade vehicles are treated as investments.

Andreas‘ average: ~$0.15 after various additional purchases

THE WAITING YEARS: PROTOTYPE, PIVOTS & NAME CHANGES

2017 - After 3 years: „ChromedX completes HemoPalm Prototype!“

A prototype is NOT a saleable product. It is a thing that sometimes works in the lab under ideal conditions. From there to market readiness: 2-5 years, clinical studies, FDA approval, production setup.

2018 - Name Change #1: ChromedX → Relay Medical Corp.

With penny stocks, one name means change: „Fresh Start“ marketing. Making old shareholders forget, attracting new investors, enabling new pump cycles.

Reputable companies don't change their names every 2 years. They deliver products instead of selling stories.

2019-2021 - The dilution:

HemoPalm is simply not coming. No revenue, but cash is being burned. Solution? Print more shares. Your stake in the company halves.

What if medical devices don't work? Pivot to buzzwords! Suddenly Relay Medical does: Digital Health + AI-powered Analytics + IoT Sensors + Real-time Data.

Translation: „We have no idea what we're doing, but it sounds modern!“

2021 - Name Change #2: Relay Medical → Scryb Inc.

Now a „Technology Portfolio“ with Cybersecurity, Healthcare Platforms, AI Governance, and Cannabis products.

So: everything and nothing.

Andreas: „After years of hope and several name changes...“

THE WINDOW OPENS

„They're on $0.50 for a very short time because of a message,“ says Andreas.

Presumably a contract win or partnership announcement. The price jumps from $0.15-0.20 to $0.50.

„I missed that.“

The next day: Again at $0.35-0.40. Then $0.32... $0.30...

The decision:

Wait for $0.50 again? Or take what you can get?

„But in the fall I'm out around $0.30.“

THE INVOICE

Entry average: ~$0.15
Exit: $0.30
Profit: +100%

Andreas has doubled from a Canadian chip shop.

After years of waiting, hoping, diluting. Not through perfect timing, but through Exit discipline.

He didn't wait for „back to $0.50“ or „maybe it will go to $1.00“.

He has used the exit window.

WHAT BECAME OF THE HODLERS (2026)

„Now they're called Scryb, currently €0.065,“ says Andreas with a grin.

Andreas' exit: $0.30
Today: $0.10 CAD (≈ €0.065)
Should have held: -67% loss

Plus 3 reverse splits since his exit. Original shareholders with 10,000 shares @ $0.20 today have ~500 shares @ $0.10 = -97.5% Loss.

Andreas, on the other hand: +100% profit.

Not because he was smarter. But because he was has taken the window.

INVESTMENT VS. TRADE - KNOW YOUR GAME

	INVESTMENT	TRADE
Time horizon	Months to years	Hours to days
Trigger	Business Fundamentals	News, Newsletter, Pumps
Examples	AG, HUT 8, Apple	ChromedX-Pumps, Explorer-News
Exit strategy	Rebalancing, fundamentals change	+30-50%, then out
Risk/reward	Moderate gains over time	Fast gains or fast losses
Monitoring	Quarterly Check	Daily, Hourly
Suitable for	Long-term wealth creation	Active traders with time
Red Flags important?	YES - bad business destroys you	LESS - you'll be out in 48 hours

Andreas‘ mistake with ChromedX:

Trade vehicle (newsletter pump) treated as an investment (buy & hold).

THE LESSON: RECOGNIZE RED FLAGS

Canadian chip shop warning signals:

🚩 CSE/TSX Venture Exchange - Penny Stock Territory, minimum standards
🚩 Market cap < $10M - Too small for institutional, only retail = pump target
🚩 No revenue after years - „We're developing!“ without end
🚩 Newsletter-dependent courses - Only moves with promoter pumps (works as a trade, NOT as an investment)
🚩 Name changes every 2-3 years - „Fresh Start“ instead of products
🚩 Buzzword pivots - From medtech to AI to crypto to... what's trendy right now
🚩 Massive dilution - Share count explodes, your share shrinks
🚩 No insider purchases - Management does not buy its own shares (they know why)

The difference to real businesses (HUT 8 style):

✅ Major Exchange - NASDAQ/NYSE with real standards
✅ Real revenue - $161M annual with HUT 8 vs. $0 with ChromedX
✅ Institutional ownership - 40% institutions vs. 0%
✅ Business-driven courses - Fundamentals instead of Promoter Newsletter
✅ Stable identity - Same business, not pivot every 2 years

Yes, HUT 8 is also Canadian. But NASDAQ-listed with real business.

The rule: „No CSE/Venture penny stocks. Canadian companies on NASDAQ with real business = OK.“

DIGRESSION: THE SAME GAME WITH MINING EXPLORERS

„The theme is repeated with many small Explorers,“ says Andreas.

The problem:

How do you distinguish between:

A) Boschhammer booth:

Shallow holes (50-100m deep)
Sporadic „anomalies“
Many press releases, little substance
Management makes salary, no real interest in mining

B) Serious Explorer:

Deep holes (1,000-3,000m)
Regular drilling results with real grades
Systematic Grid Drilling
Management with Skin in the Game

Both are „Explorers“. Both are CSE/TSX Venture.

But one thing is Trade (Boschhammer news pump for 48h).
The other is a Investment (real discovery potential).

How to differentiate?

Red Flags (Boschhammer booth):

Drilling results sporadic, no continuity
🚩 „Visual mineralization“ instead of assay results
🚩 Shallow holes (<200m) in known regions
🚩 Management has 5 other „projects“ in parallel
🚩 Press releases for every fart

Green Flags (Serious Explorer):

✅ Systematic drilling program (10+ holes planned)
✅ Deep holes (1,000m+) with real assays
✅ Regular updates (not only for „good news“)
✅ Management with a mining background
✅ Insiders buy their own shares

The rule remains the same:

If you can't tell whether it's a Bosch hammer or a real triplet → Trade it, don't invest it.

THREE EXITS, ONE LESSON

Andreas has made three big exits - never at the absolute top, but never at the bottom either:

1997 - Deka-Fonds: +50% in 6 months, out before dot-com crash
2023 - ChromedX: +100% at $0.30 instead of -67% at $0.10 today
2025 - HUT 8: +308%, exit for rebalancing instead of hoping for $70

The pattern:

Andreas does not sell at the top. But he avoids the bottom.

Better to take 60-80% from the Peak...
...than 100% at the bottom.

EPILOG

The sun sets over the terrace. The cigar is finished.

„Do you regret ChromedX?“ I ask.

„No,“ says Andreas. „Because I did +100%. And because I've learned what I do NOT buy.“

He leans back.

„The most expensive lessons are often the most valuable. Maybe no HUT 8 (+308%) without ChromedX. Maybe other chip shops without Exit. Maybe no discipline.“

The most important lesson?

„Test those who commit themselves forever or need a quick window exit.“

Investment or trade - that is the question:

Do I want to own a piece of a company? (AG, Apple, HUT) → Buy & Hold
Do I want to ride a newsletter pump? (ChromedX, Explorer News) → 48h in/out

Both are OK. Both can make money.

But you have to know what you're playing.

„I played ChromedX as an investment. That was the mistake.“

„When an exit window opens - GET OUT,“ says Andreas. „Don't wait for the perfect moment. Don't hope for the jackpot.“

Profit is profit.

Better to have +100% in your pocket...
...as -67% in the hope.

Warren out. 🍟💰

LEARNINGS:

Know your game: Trade vs. investment - both OK, but different rules
Use the exit window: When the door opens - get out (applies to trades AND bad investments)
Newsletter-Pumps: Works for 48-hour traders, poison for buy & hold investors
Recognize red flags: CSE, no revenue, name changes, Boschhammer-Drilling
Business > Buzz: Real companies deliver products (AG, HUT), not stories (ChromedX)
„Test those who bind themselves forever or need a quick window exit“ - Andreas‘ golden rule

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DISCLAIMER
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This article is based on personal experience and is for information purposes only. It does not constitute investment advice.

All companies, prices and developments mentioned refer to publicly available information (sources: Investing.com, Yahoo Finance, Newsfile Corp., Canadian Securities Exchange). We make no claim to completeness or accuracy.

You make investment decisions at your own risk. Please consult an authorized financial advisor.

✅ FINAL VERSION - READY TO PUBLISH!

Warren out! 🚀🍟