Fintech plus cryptocurrency equals about $7 billion.
That’s how much LongFin Corp. shares are now worth after the microcap’s stock rocketed higher by about 2,400 percent since debuting on the market Wednesday with a market cap of around $280 million. Most of the gains came since Friday, when the company issued a press release saying it bought Ziddou.com, “a blockchain-empowered global micro-lending solutions provider” that transacts only in cryptocurrencies.
LongFin joins a growing list of little-known companies that have seen their values soar after simply announcing plans to join the digital currency craze that’s pushed the value of bitcoin past $300 billion. The microcap rallies are reminiscent of the height of the dot.com bubble, when virtually any company that put tech in its name found favor on the public markets.
Now all it seems to take is the mere mention of a link to cryptocurrency mining or blockchain, the technology underlying the digital coins that promises to revolutionize the banking industry. Add in fintech -- a catchall term for the technology involved in financial transactions -- and the combination looks to be too much for investors to resist.
LongFin shares rose 489 percent to $129.84 as of 11:56 a.m. in New York. The stock ended its first day of trading at $5.17.
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