Securities and Exchange Commission Takes Action
The SEC has thrown a wet blanket on the trading of UBI Blockchain’s shares, raising a few eyebrows in the investor community. The suspension comes with two primary concerns: first, the accuracy of the company’s assertions regarding its business operations, and second, a flurry of unusual market activity surrounding its Class A common stock dating back to November 2017.
Stock Rollercoaster: From $9 to $87
If you thought your last trip to an amusement park was thrilling, you haven’t seen UBI Blockchain’s stock journey. From a modest $9, it skyrocketed to $87 in just a week last December, only to spiral back down to a sobering $22 today. Talk about a case of whiplash!
The Blockchain Boom: Riding the High Tide
UBI Blockchain isn’t flying solo here; it’s part of a broader trend. The Bitcoin and Blockchain craze has swept several companies along for the ride, all while UBI endeavored to leverage Blockchain technology for tracing food and drug products back to their origins. From a mere 55 cents in February 2017, the stock reached an eye-popping $115 in a flash. Welcome to the wild west of investment!
Is It Too Good to Be True?
- UBI Blockchain was previously known as JA Energy.
- Market cap soared to over $800 million without a single dime earned in revenue.
- The company’s phone for regulatory inquiries? Disconnected.
What Does the CEO Have to Say?
In a surprising show of calm, CEO Tony Liu claimed the SEC’s decision was understandable, pointing to the frenzied buying habits surrounding the Bitcoin phenomenon. Liu noted, “We believe the general public is confusing our Blockchain technology with Bitcoin companies… we plan to be in business for years after the Bitcoin buying anomaly ends.” That’s one optimistic outlook!
A History of Suspensions and Name Changes
UBI Blockchain isn’t alone in this storm. Other companies have grabbed attention by slapping “Blockchain” onto their names, like Long Island Iced Tea, which saw its stock quintuple after rebranding itself to Long Blockchain. Talk about marketing magic! Similarly, The Crypto Co. faced a suspension back in December for a jaw-dropping 2,700% rise in value, illustrating that the SEC is keeping a watchful eye in this volatile landscape.
Key Takeaways
- The SEC’s suspension highlights the importance of transparency in financial claims.
- Investors are reminded to conduct thorough research before diving into the deep end of the investment pool.
- Market frenzies can lead to wild price swings – stay afloat and cautious!
