Blockchain Stocks Collapse by 40% to 90%
wolfstreet.com
wolfstreet.com
> UBI Blockchain didn’t do an IPO. Instead, in October 2016, it acquired a publicly traded shell company registered in Las Vegas, called “JA Energy.” It then changed the name and ticker symbol to what they’re now.
> Over the six trading days starting on December 11, 2017, its shares soared over 1,100%, from $7.20 to $87 on December 18, as the word “blockchain” in its name and sufficient hype and speculator-idiocy took hold. By December 21, shares had plunged 67% to $29. They closed on Wednesday at $38.50. At this price, it still has a ludicrous market cap of $3.64 billion.
https://wolfstreet.com/2017/12/28/im-in-awe-of-how-far-the-s...
SEC froze their stock temporarily and it's down to $9 now.
https://www.google.ca/search?q=OTCMKTS:UBIA&tbm=fin&gws_rd=s...
^ Viewing their stock price graph by "1 year" is quite interesting.
Oh and the CEO + 5 other individuals were trying to sell a ton of stock without investing anything back into the company, not sure if they managed to or not...
That said, a proper IPO allows for more scrutiny and it is probably better to read the SEC filings before investing in a company you don't know (and also in one you know). Everyone pretending Crypto is not a bubble should justify this kind of behavior where people are investing based on keyword instead of knowledge...
Even the worst coin bobs upwards slightly from time to time, so people will sadly be 'buying the dip' and HODLing - to use their own parlance.
The crypto craze reminds me of the London riots in an odd way, people know that this is not normal and that order will be resumed eventually. People then went to great lengths to loot things they could never fence or want for themselves.
The craze is also quite funny because none of these people that are turning up now to buy coin have any faith in the regular banks and city, they have taken the Koolaid and they love it. What happens to capitalism as we know it when everyone takes their dollars and buys these unregulated monopoly money tokens, to disregard normal money as 'worthless fiat'? It is comical, in the same vein as the London Riots of 2011.
These days, I consider crypto to be equivalent to buying precious metals, going long volatility, etc. Just different leverage, and nobody knows if you're leading or trailing with correlation to other equities.
It's not free money, but I don't believe in the "it's just a matter of time til' you revert to the S&P ytd growth" meme either.
Full disclosure, I'm 0% in crypto except the 20~ BTC I lost in highschool when I dbanned to install slackware. These days I get my leaverage from volatility, metals and bonds. Scaling, and short/longing as my appraisal evolves.
Miners buying GPU’s in the dozens are going to get burned eventually, don’t make yourself a statistic IMO.
It's something I've considered in terms of all economic and political movements. If your movement requires ideological cohesiveness to survive, that's not going to be enough. There has to be an advantage to participation that goes beyond philosophical agreements and extends deeply into the material world. If that material benefit fails to (ahem) materialize, then ideology gives way to practicality.
An anarchist system controlled by a minority of violent mafia gangs would be simpler and more economically efficient... The reason why the world is not like this is simply because most people are willing to make personal sacrifices to prevent it.
A society made up of people who only act for their own self-interest will inevitably be an anarchist society.
If idealism has held together innefficient systems like capitalism, socialism and organised religion for so long, surely it can hold together other systems like cryptocurrencies.
It's difficult for individuals to uphold laws in a system where everyone knows that everyone else is cheating.
But self-interest is why modern capitalism survives despite, on the face of it, seeming like a terrible system. It would be very hard to convince people who had never heard of it to adopt it by description alone. But if you take away their source of food and clothing, and then offer them a wage by which they can purchase them instead, then you have yourself a participant.
RIOT, the failed biotech company, is still at $17.91, up from ~$4 before the naming fraud began.
Their big news consists of winning a whopping 500 bitcoins in a US Marshals Service auction.
Overstock (missing from the article) is still up at $74. The stock traded at something more commonly around $15 to $20 for years prior to the manic pumping. Pull back and look at their five year chart, that spike is how much they have to give back yet. It's all fake value they'll be entirely unable to support with business fundamentals. As the quarters roll by and their actual business sees zero benefit, it'll wilt accordingly.
These junk stocks have managed to be even more pathetic than the worst of the dotcoms in 1999/2000. Not an easy task.
Why is that? Their financials look very solid: https://finance.google.com/finance?q=NASDAQ%3AOSTK&fstype=ii...
I told him to cash out asap, hopefully he does. I know he won't.
-4 points by readhn 38 days ago | parent [-] | on: Bitcoin Climbs as Futures Debut Fails to Incite At...
What goes up must come down. What goes up fast and hard usually falls faster and harder. Market 101.
by readhn 83 days ago | parent [-] | on: Ask HN: Why is Bitcoin rising but ethereum remaini...
Getting my pop corn ready for first at least a 50% hair cut on BTC value.
-4 points by readhn 119 days ago | parent [-] | on: Bitcoin blow as fund drops U.S. exchange applicati...
RIP bitcoin. Current valuation is $4142.99 higher than it should be.. Im thinking we will get there within a couple of years. $1-2 seems about right per 1 BTC.