The Securities and Exchange Commission has filed an order to suspend the trading in shares of The Crypto Company (OTC Pink:CRCW).
Shares in The Crypto Company had recently risen to over $640 per share. The 52 week low of shares in CRCW were $3.30 each. It is interesting to note that the home page of The Crypto Company claims, “Trust. Credibility. Innovation.”
The SEC said questions have arisen concerning “potentially manipulative transactions in the company’s stock.” Average daily volume of CRCW was 2,328 shares thus creating an opportunity for traders to manipulate the stock price due to the low level of liquidity.
The Crypto Company is a Nevada corporation with its principal place of business listed as Malibu. Management announced the acquisition of Coin Tracking e.K. in November. The Germany based company was described as a “global leader in cryptocurrency data aggregation and token related price quotation and portfolio tracking services.”
Mike Poutre, Chairman and CEO of The Crypto Company, commented at that time;
“The Crypto Company is forging a path to industry leadership as demonstrated by our plan to close one of the first acquisitions in the industry, CoinTracking.info, the premier portfolio monitoring and tax system for all digital currencies. CoinTracking provides a solution for the very difficult process of managing crypto transactions on different exchanges by importing and tracking them all in one place, with the added ability to then create reports for many situations. With in-depth information on more than 5,000 currencies, CoinTracking can provide prices for virtually every digital coin on earth.”
A write up in SeekingAlpha from late last week helped to highlight an allegedly dodgy nature of CRCW. According to author Paul Santos, “the company doesn’t really exist.” He noted that at a share price of $314, CRCW had a market capitalization of $6.5 billion. At a share price of $640, of course, that valuation goes quite a bit higher ($13+ billion).
The dramatic price changes in The Crypto Company may be an indication of a pump and dump scam. Certainly, the SEC was concerned sufficiently to shut trading down.
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