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Thread: Cynk Technology value soars to over $5 billion within days

  1. #1
    littleroundman is offline Administrator
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    Cynk Technology value soars to over $5 billion within days

    IT HAS no assets, no revenues and no business plan to speak of. But a company called Cynk Technology has seen its value soar as high as $5.09 billion.

    Wall Street analysts have been at loss to explain the spectacular 24,000 per cent rise in Cynk, which trades on the lightly regulated over the counter (OTC) market. While its share price and market value fell at the close of trade, the company unknown in the technology or financial communities, for a time traded in the range of the value of firms such as Groupon, Pandora Media or Yelp.

    “We must sadly conclude that the company is nothing but a fraud,”
    said the financial news website Zero Hedge.

    “And it is nothing short of a testament to just how broken this excuse for a market is that a company with no assets, no revenues, no website and one employee can go from zero value to nearly $US5 billion in market cap in a few days.”

    The stock trading at 6.3 cents on June 16 inexplicable surged to $2.39 the next day, and rose to as high as $17 on Thursday, before slipping to about $14.9 at the close — making its paper value still an eye-popping $4.26 billion or so.

    The company avoided scrutiny until its disproportionate value drew the attention of Wall Street veterans.

    The phone number listed on company documents was out of service. Richard Green of the market analysis firm Briefing.com examined the company’s regulatory filing, which indicated Cynk had no assets, no cash and an accumulated loss of $1.59 million.

    Cynk calls itself a social network, based on its early incarnation as introbiz.com, which offered to put people in contact with celebrities like Angelina Jolie or Johnny Depp for $50.

    “The company is no more of a functional business than your average college student’s entrepreneurial dream,”
    Mr Green said. “There was no news or other recognisable event to explain such stock trading activity.” Analysts note that the market value is merely on paper, based on trades of a small number of shares.

    “We want to stop short of directly calling Cynk Technology a ‘scam operation’, as we have not yet been able to find a reason for the unusual trading, but it certainly has all the appearances of the typical ‘pump and dump’ scheme used to deceive ignorant investors into buying into ‘the next social media’ giant’,”
    Mr Green added.

    One concern is that certain “momentum” investors who use algorithms to trade can be attracted to the stock simply because of its rise.

    “There is no rational explanation for yesterday’s trading activity and the $US4 billion market capitalisation,”
    Mr Green said. “In short, Cynk has ‘stynk’ written all over it and we think the best approach to this stock is to avoid it entirely.”

    News.com.au

    The next "big thing" in social media listed on the OTC with no assets, no revenues and no business plan,

    where have we heard that before ???

    Oh, I remember now,

    all over the Talkgold and MMG HYIP ponzi forums.
    The only thing necessary for the triumph of evil is for good men to do nothing

  2. #2
    littleroundman is offline Administrator
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    Re: Cynk Technology value soars to over $5 billion within days



    That didn't take long

    SEC litigation release
    The only thing necessary for the triumph of evil is for good men to do nothing

  3. #3
    Whip's Avatar
    Whip is offline Anonymous. As are you all
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    Re: Cynk Technology value soars to over $5 billion within days

    I guess it was Cynk or swim eh?

  4. #4
    Blue Wolf's Avatar
    Blue Wolf is offline Senior Member
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    Re: Cynk Technology value soars to over $5 billion within days

    You know what they say . . .What goes up, must come down.

    Or perhaps Easy come, easy go might be a little more appropriate.

    Cynk Technology, which once traded at $21.95 last month, ended trading yesterday at 35 cents.

    I'm still wondering why the stock went up so high. Some kind of scam, I suppose.

  5. #5
    Blue Wolf's Avatar
    Blue Wolf is offline Senior Member
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    Re: Cynk Technology value soars to over $5 billion within days

    Business Insider came out with this article about stock market stories from 2014 that seemed too crazy to be true, and CYNK Technology was at number 1:

    Wildest Market Stories Of 2014 - Business Insider

    12 Stock Market Stories From 2014 That Seemed Too Crazy To Be True

    1. CYNK Technology — The $5 Billion Social Network That Was Once Worth Over $5 Billion But Had No Revenues, Assets, Or Full-Time Employees

    In July, CYNK Technology was all the rage in markets. At one point, the company was worth almost $6 billion

    But there was a small problem.

    The company had no revenue, no assets, and no full-time employees. In the summer, CYNK shares rose almost 25,000% in just 16 days, going from just fractions of cents to more than $10 per share and then all the way back down.

    The company purportedly ran a social networking site call introbiz.com, which claimed to connect users to celebrities, though its not clear if the site worked at all.

    Business Insider's Hunter Walker and Julia La Roche eventually tracked down some people who were associated with the company in the past, though most everyone Walker and La Roche reached out attempted to distance themselves from the situation.

    Unfortunately, for at least one Wall Street trader, trying to short CYNK cost him his job.

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