Longfin, American FINTECH company, has increased the value of their shares at 1342% after announcing that it is going to become a cryptocurrency company and purchase a blockchain startup without any value.
What is this blockchain mania?
Many companies suddenly become fabulously profitable, if you use the word “blockchain” in its name or associate the business with this innovative technology.
The explosion of stock prices lifted the market capitalization of Longfin from $220 million to $3.1 billion According to the General Director of Venkat Meenavalli, these figures are significantly overstated.
In an interview with CNBC, he said:
“We are a profitable company … We have nothing to do with this euphoric mania. Current market capitalization is not justified. I estimated the cost of the IPO (IPO) at $5”.
According to the report, the stock price jumped from $5.45 in Thursday last week to $72,38 this Monday after the announcement of the company about the intention to acquire Ziddu, Singapore micro-credit platform running on the bitcoin blockchain.
The opposite opinion
This news added fuel to the fire, as some cryptocurrency skeptics believe that the market is subject to mania of launching a bitcoin futures on the Chicago Mercantile exchange this week.
Other industry representatives did not agree with this point of view, at least partially. For example, Sergey Vasin, chief operating officer Crypto Blackmoon said:
“I think crypto-currencies, including bitcoin, attracted a lot of attention in the world of financial news. Wall street is following with interest this market, anticipating the adoption of cryptocurrencies. The rate of inflation, which is now observed on the market, this is a direct response to the incremental capital included in it at the same time. On wall street ready to embrace the benefits of technology distributed registries and tokenization of capital. A new stage in the adoption of the basic principles has just begun.”