{"id":33071,"date":"2018-04-03T07:06:03","date_gmt":"2018-04-03T12:06:03","guid":{"rendered":"http:\/\/olduvai.ca\/?p=33071"},"modified":"2018-04-03T07:06:03","modified_gmt":"2018-04-03T12:06:03","slug":"what-kind-of-hyper-enthusiastic-market-is-this-that-blindly-keeps-pursuing-scams-to-make-a-fortune-overnight-even-if-they-already-crashed-the-first-time","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=33071","title":{"rendered":"What Kind of Hyper-Enthusiastic Market is this that Blindly Keeps Pursuing Scams to Make a Fortune Overnight, even if They Already Crashed the First Time?"},"content":{"rendered":"
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What Kind of Hyper-Enthusiastic Market is this that Blindly Keeps Pursuing Scams to Make a Fortune Overnight, even if They Already Crashed the First Time?<\/a><\/h3>\n<\/header>\n
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It\u2019ll take many more sell-offs and the collapse of many more iffy stocks before this hyper-enthusiasm, after nine years of central bank nurturing, is finally wrung out of the market.<\/strong><\/p>\n

Shares of \u201cblockchain\u201d company LongFin (LFIN) plunged 17% today to $14.31, the sixth trading day in a row of plunges. Intraday on Friday, March 23, shares still traded at $73. The astonishing thing isn\u2019t that they\u2019ve plunged 81% over those six trading days, but that they had more than doubled<\/em> over the prior two weeks, and that they\u2019re still<\/em> trading above penny-stock status to begin with.<\/p>\n

LFIN started trading on December 13, following their IPO. On December 15, LongFin announced \u2013 with what\u00a0I called<\/a> it \u201ca mix of gobbledygook, hype, and silliness\u201d \u2013 that it had acquired a \u201cBlockchain-empowered solutions provider,\u201d namely a website that belonged to a Singapore corporation that is 95% owned by Longfin\u2019s CEO and chairman.<\/p>\n

Though neither the announcement nor the transaction passed the smell-test, shares skyrocketed 2,700% to an intraday high of $142.55 on December 18, giving it a market cap of $7 billion and making it the role model for a bevy of other \u201cblockchain\u201d companies. Then, as stock jockeys grappled with reality, shares plunged. As did the shares of other \u201cblockchain\u201d companies.<\/p>\n

But then on March 12, it started all over again, when index provide FTSE Russell announced that LongFin would be added to some of its indices, including the widely-tracked Russell 2000, effective March 16:<\/p>\n

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Then all kinds of things happened.<\/strong><\/p>\n

On March 26, short-seller Citron Research tweeted<\/a>: \u201cIf you are fortunate enough to get a borrow, indeed $LFIN is a pure stock scheme. @sec_enforcement should not be far behind. Filings and press releases are riddled with inaccuracies and fraud.\u201d<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

What Kind of Hyper-Enthusiastic Market is this that Blindly Keeps Pursuing Scams to Make a Fortune Overnight, even if They Already Crashed the First Time? It\u2019ll take many more sell-offs and the collapse of many more iffy stocks before this hyper-enthusiasm, after nine years of central bank nurturing, is finally wrung out of the market. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[13266,124,1849,950,4148,501,19654,5420,4254,6118],"class_list":["post-33071","post","type-post","status-publish","format-standard","hentry","category-economics","tag-blockchain","tag-central-banks","tag-financial-markets","tag-fraud","tag-market-correction","tag-market-crash","tag-market-sell-off","tag-scam","tag-wolf-richter","tag-wolf-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33071"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33071\/revisions"}],"predecessor-version":[{"id":33072,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33071\/revisions\/33072"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}