SEC Suspends Trading Of Crypto Company Due To 2,700% Surge
Cryptocurrency speculation is hitting traditional markets hard as well. The SEC stepped in yesterday to temporarily halt the trading of The Crypto Company (CRCW) stock because of a sharp rise in it’s price over the last month. This is all symptomatic of the fervor of anything related to cryptos and blockchains. Here’s what CNN reported on the matter:
The U.S. Securities and Exchange Commission temporarily suspended trading Tuesday in shares of The Crypto Company, whose shares have surged more than 2,700 percent this month. The suspension will last until midnight on Jan. 3, according to a release. The commission cited concerns about the “accuracy and adequacy of information in the marketplace about, among other things, the compensation paid for promotion of the company, and statements in Commission filings about the plans of the company’s insiders to sell their shares of The Crypto Company’s common stock.
“Questions have also arisen concerning potentially manipulative transactions in the company’s stock in November 2017,” the release said.
Several other small companies have seen their stock surge dramatically after announcements that tied them to bitcoin or the blockchain technology behind the cryptocurrency.
On 10-18-17, the price was around $9. At the time of trading suspension it had hit $575 per share. An amazing run, for sure, but you can see why alarm bells sounded.
Let me know what you think in the comments. Should the SEC have intervened?