For some, this may be like closely examining a fatal car crash. From Wolf Richter at wolfstreet.com:
Black Friday for them. Meet the OTC’s “skull and crossbones.”
I’ve never seen a sector skyrocket and totally collapse this fast – in four months – as these newfangled “blockchain stocks.” Now they’re surrounded by debris and revelations of scams. These fly-by-night or near-failure outfits used the hype of “blockchain” and the whole media razzmatazz about cryptocurrencies to manipulate up their stocks, sometimes by several thousand percent in a matter of days.
I vivisected some of these outfits and their stock manipulation schemes on the way up. And on January 25, I documented Phase One of the collapse. This is now Phase Two of the collapse. And dip buyers are still not through getting crushed.
UBI Blockchain International got totally mangled. When I last wrote about UBIA on January 25, it was down 93% from the peak six weeks earlier. Since then, all heck has broken loose. On Friday, OTC Market, where the shares had been demoted to, slapped a “skull-and-crossbones” icon next to the ticker and no longer displays a quote.
It started out so promising: Over the course of a few days in mid-December, UBIA skyrocketed 1,500% to $115 a share intraday.
- December 28, I tarred and feathered the company, its executives, their shenanigans, and their Chinese connection [for details, read, I’m in Awe of How Far the Scams & Stupidities around “Blockchain Stocks” are Going].
- January 9, the SEC halted trading in UBIA, for two reasons: lacking “accuracy” in disclosures and funny trading activity. The trading halt froze the share price at $22.
- January 23, when trading resumed, shares plunged further.
- January 25, when I last wrote about it, they were at $8.25, down 93% from the peak.
- February 9, the company disclosed in its quarterly SEC filing that it had zero revenues and a quarterly loss of $1.24 million. It repeated that its ability to go on as a “going concern” depended on getting new financing and its “ability to achieve and maintain profitable operations.” Fat chance.
- February 15, shares closed at $6, down 95% from the peak.
Friday, February 16, OTC Markets Group stopped displaying quotes of UBIA, labeled the shares “Caveat Emptor (Buyer Beware),” and placed the skull-and-crossbones icon next to the stock symbol. It told investors to “exercise additional caution and perform thorough due diligence before making an investment decision in that security.”
To continue reading: “Blockchain” Stocks Completely Disintegrate