The U.S. Securities and Argument Commission temporarily suspended trading Tuesday in shares of The Crypto Co., whose stockpile has surged more than 2,700 percent this month.
The discontinuing will last until midnight Jan. 3, according to a release.
The commission cited affairs about the “accuracy and adequacy of information in the marketplace about, among other fears, the compensation paid for promotion of the company, and statements in Commission filings respecting the plans of the company’s insiders to sell their shares of The Crypto Players’s common stock.”
“Questions have also arisen concerning potentially manipulative dealings in the company’s stock in November 2017,” the release said.
The Crypto Co. did not instantaneously respond to a CNBC request for comment. The latest jump in its share bounty gives the company a market value of more than $11 billion, be consistent to FactSet. The company’s shares last traded at $575.
“There are a lot of companies winning advantage of the euphoria associated with this space, and we do not want be associated with them,” CEO Mike Poutre estimated in a release last week announcing a 10-for-1 stock split. “We necessitate people to pay attention to the business we are building, not the hype of a stock or the cryptocurrency sphere.”
On Dec. 4, the California-based company announced it had launched the first phase of buying operations and platforms for digital currencies.
Crypto Co. was incorporated in March and its official businesses include advising, investing and trading digital assets, concording to a filing. The company went public in June by acquiring Croe, which suggests on its website that it is “a developmental stage fitness apparel company,” pre-eminently for sports bras.
Bitcoin traded 3.9 percent lower Tuesday close to $18,150 on Coinbase, the leading U.S. platform for buying, selling and trading main cryptocurrencies. The digital currency itself has soared 2,000 percent in the finish finally 12 months.
Several other small companies have seen their ancestry surge dramatically after announcements that tied them to bitcoin or the blockchain technology behind the cryptocurrency.
Economic technology company Longfin grabbed investors attention Monday with a succinctly two-day surge of more than 2,500 percent after articulating it was acquiring Ziddu.com, which says it’s a microlending company based on blockchain. Longfin’s CEO and Chairman, Venkat Meenavalli, put Monday on CNBC’s “Fast Money” that “this market cap is not validated.”
The SEC has been more active in trying to limit speculative activity linked to bitcoin and token sales, also known as initial coin contributions.
The commission’s chairman, Jay Clayton, warned in a lengthy statement earlier this month yon the dangers of investing in cryptocurrencies and initial coin offerings.
In August, the SEC for the moment suspended trading in three stocks due to questions about the companies’ maintains regarding investments in initial coin offerings or other token-related gossip. The agency also published an investor bulletin in July warning investors back the risks of participating in initial coin offerings.