Why One CEO Thinks the Price Surge of Cryptocurrency is not Justified

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The company known as Longfin saw its shares surge by over 200% on Monday, December 18th, but the CEO of the company does not agree with the astronomical gains. CEO and Chairman Venkat Meenavalli stated that “this market cap is not justified. I valued my IPO pricing at $5. We are a profitable company… we have nothing to do with this euphoric mania.” He later added that the $3 billion to $4 billion market value “is not a reality.”


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The tech firm known as Longfin dropped by as much as 18% during after hours trading on Monday after closing up 229% during an extremely volatile day of trading in the market. The stock managed to gain as much as 2,500% during the course of two-days. This is something that is obviously almost unheard of in the stock market. The gains can patly be attribute to the purchasing of ziddu.com, a micro lending company using the same blockchain technology as bitcoin. The website for Ziddu shows that the company has a digital currency currently trading at around $0.19.


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The company agreed to buy Ziddu from a private Singapore company known as Meridian Enterprises in exchange for 2.5 million shares which is quite confusing for investors. This led to a high amount of volatility in the price of the stock, showing that Meridian is now a 95% shareholder for Longfin. the CEO stated that Longfin is growing at a 200% rate, making almost $30 million in the past six months alone. He stated that Ziddu “doesn’t have any revenue right now,” and that they are still in the testing phase. He does however, expect them to make as much as $3 million by next year, which is a contested amount.

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