Official site of The Week Magazine, offering commentary and analysis of the day’s breaking news and current events as well as arts, entertainment, people and gossip, and bitcoin magazine subscriptions cartoons. Among other things, this is turning a lot of investors into potential marks for a new breed of financial hucksterism. It helps people invest in bitcoin and other currencies, develop systems and software for managing those investments, and get “exposure to the growth of global blockchain developments.
564 million trading cryptocurrencies just since March, and that it’s planning to build “a full scale, high frequency cryptocurrency trading floor. Questions have also arisen concerning potentially manipulative transactions in the company’s stock in November 2017. Basically, it sounds like the SEC is worried that Crypto is bilking or manipulating its investors — and that the company’s insiders are planning to sell off and nab a big payday before the share price collapses. The suspension ends on midnight, Jan. So this isn’t proof of wrongdoing so much as it is a shot across the bow — both for Crypto currency and anyone who might trade with them.
No response from Crypto has appeared yet, though the company said one is forthcoming. But there’s definitely a lot about Crypto that looks odd. Crypto CEO Michael Poutre has run a jewelry company, a hedge fund, a mobile-app search firm, and more, just in the last decade. Due to his one-fifth stake in the company, Crypto’s massive market capitalization boom has made him a billionaire — at least in terms of the value of the current shares he owns.
Financial Industry Regulatory Authority, though he’s never confessed to any wrongdoing. More fundamentally, it’s just not clear what value Crypto is adding to the economy. Get past its jargon-heavy self-description, and its entire business model seems to revolve around helping people trade bitcoins and other cryptocurrencies. The value of its service — and thus its revenues — depends entirely on the value of those currencies remaining high. And when it does, it will take the business models of companies like Crypto — and its stock value — down with it. Maybe Crypto’s owners are knowing and cynical, or maybe they’re just as naively enthusiastic as everyone else.
But either way, investors in Crypto’s shares are basically flushing their money away. It will just be a question of who cashes out before the bubble pops, and who cashes out afterwards. Nor is Cypto the only instance of this. What smart investors should always ask is this: What real world value does the company I’m investing in actually produce? And can it continue doing so over the long term?