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A Small Fintech Stock Surged 2,600 Percent in a Week After Announcing It's a Crypto Company (bloomberg.com)

Posted by msmash on from the not-the-onion dept.

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.

14 of 64 comments (clear)

  1. It's dot.com all over again by Opportunist · · Score: 4, Insightful

    Same shit as back then. A lot of people with more money than brains find something where they think for some odd reason that will generate money. How? They don't know. They don't understand it. But somehow that's gonna make money.

    Everyone who DOES know also knows that this can't work. At least not in the long run. But there's idiots with money throwing it at me, should I really tell them?

    I may be honest. But I'm not stupid.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    1. Re:It's dot.com all over again by ArchieBunker · · Score: 2

      You keep saying that and I keep making money... Litecoin is going to break $500 by the end of the week.

      --
      Only the State obtains its revenue by coercion. - Murray Rothbard
    2. Re:It's dot.com all over again by Opportunist · · Score: 2

      Go for it, find some MBA patsy and con him!

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    3. Re:It's dot.com all over again by Timothy2.0 · · Score: 3, Interesting

      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.

    4. Re:It's dot.com all over again by slazzy · · Score: 2

      This is how things get flushed out. Right now there's thousands of crypto currencies, money flowing like crazy. In the end it will sort itself out, and the internet will have a nice simple, stable way to make micro payments finally. Ripple might either become adopted by more banks or force them to lower wire transfer fees. Steem might become a good alternative for publishers with dropping advertising revenue. Humanity will win in the end, in the mean time fortunes will be made and lost during this crazy time.

      --
      Website Just Down For Me? Find out
    5. Re: It's dot.com all over again by orlanz · · Score: 2

      As long as pensions, 401ks, corporate insurance budgets, hedge funds, and similar regulated money piles do not get direct or indirect exposure to this, I do not care.

      Let the monies reallocate to the lucky and smart ones. They clearly will do much better investing with it than the losers.

      In my short time on earth, I have seen a few bubbles and what I learned is that people NEVER learn. They have too much âoeIt will not be me.â Or âoeIt is different this time.â.

      Honestly it is a cheap lesson for the masses to learn that there is no such thing as a quick buck that is beneficial to society.

    6. Re:It's dot.com all over again by ranton · · Score: 2

      Same shit as back then. A lot of people with more money than brains find something where they think for some odd reason that will generate money. How? They don't know. They don't understand it. But somehow that's gonna make money.

      That is part of it, but mostly it is because they cannot find anything more worthwhile to invest in. Profits are way up but consumer income is not, so there isn't enough demand for investment in traditional sectors. So significant money gets thrown at anything which could be the next big thing, such as AI or crypto-currency. The only other substantive options are to buy back a greater percentage of ownership through stock buy backs or real estate investment.

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      -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
    7. Re:It's dot.com all over again by eepok · · Score: 2

      When you accept that they're not investors, but speculators, it all make sense. They're complicit in the pump-and-dump plan of this particular bubble.

  2. Party like it's 1999 by sjbe · · Score: 4, Insightful

    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.

    Wow, it feels like the dotcom boom all over again. Companies with shitty business models getting astronomical valuations because they put .com after the name of the company. Too many greedy people chasing too few real businesses. If you need evidence that there is a bubble, here you have it. Only question is when will it pop.

  3. Re:DIY Cryptocurrency Mining... by Opportunist · · Score: 2

    We now have mainboards that ain't good for nothing but mining cryptocurrency.

    That's even weird by my standards.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  4. Press Release by Hal_Porter · · Score: 3, Funny

    Porter Industries will henceforth be known as Porter Blockchain Bitcoin Cryptocurrency Litecoin Dogecoin Much Crypto Hype Very Wow Industries.

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    echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;
  5. Pump and Dump by sjbe · · Score: 3, Interesting

    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.

  6. Re:True Cryptography? by gweihir · · Score: 3, Insightful

    They do not mean "cryptography" by "crypto". Another stupid mainstream creation along the lines of "cyber". About as useful too: You can tell that whoever uses these terms has no clue.

    --
    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
  7. "Crypto" means "Crypotgraphy" by gweihir · · Score: 2

    And that is it. Unless you are stupid and desperately tying to sound "hip". Using the already well defined short form "crypto" for "cryptographic currency" is an utter fail.

    --
    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.