What Just Happened?
Hold onto your hats, folks! Longfin, the little financial company that could, just took a cosmic leap when its shares soared an unbelievable 1,342%. The catalyst? An announcement about acquiring Ziddu, a Singapore-based cryptocurrency lending platform—valued at a big ole zero. Yep, you heard that right!
Numbers Game: From $220 Million to $3.1 Billion
After news broke, Longfin’s market cap skyrocketed from a mere $220 million to a jaw-dropping $3.1 billion. CEO Venkat Meenavalli, however, is not so sure about this newfound glory. In a delightful twist, Meenavalli remarked,
“We are a profitable company. … We have nothing to do with this euphoric mania. This market cap is not justified. I valued my IPO pricing at $5.”
It sounds almost like he was expecting a quiet nap instead of this wild rollercoaster ride!
Bye, Bye, IPO Pricing, Hello $72.38
To give you an idea of just how wild this ride has been, Longfin’s share price jumped from $5.45 last Thursday to a staggering $72.38 by Monday. Is it a glorified stock or a high-risk carnival ride? Perhaps both!
The Ownership Dilemma
But wait, it gets even more intriguing! Things took a curious turn when it was revealed that Meenavalli owns a whopping 95% of Ziddu’s parent company, Meridian. It’s a small world after all—or maybe just a small ownership circle!
The Divide: Cryptocurrency Advocates vs. Skeptics
This dizzying surge has ignited a fiery debate. Some crypto skeptics are having a field day, declaring this is further proof that the market is in full-on mania mode. Over in Camp Optimism, people like Sergei Vasin, COO of Blackmoon Crypto, see things differently. As he put it,
“It seems that cryptocurrencies like Bitcoin are stealing the show when it comes to making financial headlines. Wall Street has been watching the crypto marketplace mature with interest, waiting for Main Street’s acceptance.”
Talk about a split in the ranks!
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