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A Small Fintech Stock Surged 2,600 Percent in a Week After Announcing It's a Crypto Company (bloomberg.com)
An anonymous reader shares a report: Fintech plus cryptocurrency equals about $7 billion. That's how much the value of LongFin surged to after the microcap's stock rocketed by as much as 2,600 percent since debuting Wednesday. Most of the gains came since Friday, when the company issued a press release saying it bought Ziddu.com, "a blockchain-empowered global micro-lending solutions provider" that transacts only in cryptocurrencies. LongFin joins a growing list of little-known companies that have seen their values soar after simply announcing plans to join the digital currency craze that's pushed the value of bitcoin past $300 billion. The microcap rallies are reminiscent of the height of the dot.com bubble, when virtually any company that put tech in its name found favor on the public markets.
This is probably nothing more than a pump and dump scheme in action. They happen all the time and they tend to happen a lot during bubbles. The dotcom bubble was positively loaded with them.
You keep making money? You must be selling before you hit the peak of the bubble and missing out on even better returns. But, like all bubbles, most will try to eek out a few more percent and eat it when this pump-and-dump finally bursts.