The SEC has suspended trading in The Crypto Company, a startup whose stock has soared 17,000% since September. The US regulator is concerned about the accuracy of the information issued by the firm.
The US Securities and Exchange Commission (SEC) has suspended stock trading in The Crypto Company (CRCW), a startup that has seen its share price jump 2,700% in December. According to the regulator’s announcement, the trading freeze will be valid until January 3, 2018. Based in California, the crypto-oriented company trades on the over-the-counter (OTC) market and has gained a staggering 17,000% since going public late in September 2017.
The SEC based its decision on “concerns regarding the accuracy and adequacy of information in the marketplace about, among other things, the compensation paid for promotion of the company, and statements in Commission filings about the plans of the company's insiders to sell their shares of The Crypto Company's common stock.”
The regulator said it was also worried about possible manipulative transactions in the stock last month. The SEC alerted shareholders, potential stock buyers, and broker-dealers to be careful when examining information issued by The Crypto Company.
Despite the SEC’s clear position, the company refuses to accept the accusations and has reacted to the announcement, with CEO Mike Poutre telling Business Insider:
“We are fully reporting and get halted. SEC is sending the wrong message. We are working with counsel and will handle things appropriately.”
The Crypto Company started trading on September 27 at $3.30 per share. The price ballooned to $642 on December 11, which represents an astronomical return of 19,000%. At the time of the suspension, the stock was trading at $575.
This is not the only crypto or blockchain-based startup to deliver an impressive return. On Monday, investors learned about LongFin Corp, which surged by about 2,500% on news that it was buying blockchain-based Ziddu.com. Longfin (LFIN) went public on December 13 at $5.15 per share, and saw its price surpass $126 on Monday.
Longfin CEO Venkat Meenavalli told CNBC's Fast Money program that “this market cap is not justified. It’s insane.”
At the beginning of October, we reported that biotech company Bioptix had changed its name to Riot Blockchain to benefit from the trend. It saw its share price increase by 20% within a few days.
https://cryptovest.com/news/sec-halts-trading-in-crypto-startup-after-mammoth-surge/
The US Securities and Exchange Commission (SEC) has suspended stock trading in The Crypto Company (CRCW), a startup that has seen its share price jump 2,700% in December. According to the regulator’s announcement, the trading freeze will be valid until January 3, 2018. Based in California, the crypto-oriented company trades on the over-the-counter (OTC) market and has gained a staggering 17,000% since going public late in September 2017.
The SEC based its decision on “concerns regarding the accuracy and adequacy of information in the marketplace about, among other things, the compensation paid for promotion of the company, and statements in Commission filings about the plans of the company's insiders to sell their shares of The Crypto Company's common stock.”
The regulator said it was also worried about possible manipulative transactions in the stock last month. The SEC alerted shareholders, potential stock buyers, and broker-dealers to be careful when examining information issued by The Crypto Company.
Despite the SEC’s clear position, the company refuses to accept the accusations and has reacted to the announcement, with CEO Mike Poutre telling Business Insider:
“We are fully reporting and get halted. SEC is sending the wrong message. We are working with counsel and will handle things appropriately.”
The Crypto Company started trading on September 27 at $3.30 per share. The price ballooned to $642 on December 11, which represents an astronomical return of 19,000%. At the time of the suspension, the stock was trading at $575.
This is not the only crypto or blockchain-based startup to deliver an impressive return. On Monday, investors learned about LongFin Corp, which surged by about 2,500% on news that it was buying blockchain-based Ziddu.com. Longfin (LFIN) went public on December 13 at $5.15 per share, and saw its price surpass $126 on Monday.
Longfin CEO Venkat Meenavalli told CNBC's Fast Money program that “this market cap is not justified. It’s insane.”
At the beginning of October, we reported that biotech company Bioptix had changed its name to Riot Blockchain to benefit from the trend. It saw its share price increase by 20% within a few days.
https://cryptovest.com/news/sec-halts-trading-in-crypto-startup-after-mammoth-surge/
I read the news yesterday and it shows a further fact that the regulators are not ready to accommodate crypto currency or crypto related companies and they would continue to push for total ban of crypto and for those who just want regulations so they can be free to spend as much as they want, we might end up wanting to compromise on everything that bitcoin stands for. I cant imagine how a start up company could be suspended just because its related with crypto currency and does not want to go through the route of traditional conglomerates that would take centuries to achieve what this 'unknown' company has achieved.
The crux of the matter is the dilemma start ups will face because they dont have the capital to raise fund from the capital market, and coming to the crypto market to raise fund, operate but wanting to do the right thing in the society, they are faced with this form of victimization whereas stock of companies that might be subject to manipulations are allowed to trade.