The shares of Riot Blockchain Inc. went down by about 34% after reports emerged that the re-branding of the former biotech-equipment maker was done mainly the enrich people who control the company. Prior the report the shares had quadrupled moving to as high as $46.20 after the company changed its name in October from Bioptix.Inc. They changed the name saying that they were focusing on Cryptocurrencies and Blockchain startups.
The euphoria did not last long before the stock lost more than half of its value since the peak on December 18th. This was mainly because of the concern that the company wasn’t doing much more than issuing press releases. Several red flags were raised when Riot CEO John O’Rourke sold 869,000 shares less than 3 months after the re-branding.
The CEO had said that the sale was for tax purposes. John O’Rourke was quoted in an email saying that: “This was a garbage hit piece. I have the best feeling for our business, our assets and the positioning at the forefront of the Blockchain technology.”
Yesterday Riot said that it had entered into an agreement to have a Bitcoin mining equipment. More to that it also announced new plans to start a digital currency exchange and also a futures brokerage. According to CNBC’s report questioned the involvement of Barry Hanig who acquired 700,000 warrants which he could convert into stock at the rate of $3.56 per share and other 700,000 promissory notes which he could convert at the rate of $2.5 per share. This moved is said to be the main factor that saw the stock shoot to over $40.
Yesterday the shares fell to as low as $11.36 in the New York trading. When Honig asked whether he was still manipulating stocks after he was reminded that he was fined $25,000 and suspended 10 days by regulators in 2000, he denied saying that he was only a successful investor.
The post Riot Blockchain shares went down after manipulation concerns appeared first on cryptona.