Who Needs Crypto? Chinese ‘Sh*tstock’ Spikes 13,000% In One Day
It’s undeniable that a big part of the allure of investing in cryptocurrencies (for many immature ‘investors’) is the dramatic rallies (and soul-crushing falls) of nascent coins… But why gamble on ‘shitcoins’ when ‘shitstocks’ can be just as volatile? Case in point: the unfolding Addentax Group fiasco.
According to Reuters, Addentax Group Corp. is a China-based company principally engaged in the manufacture of garments and the provision of logistic services. Not super exciting stuff.
But after the Nevada-incorporated holding company that controls the group debuted on NASDAQ on Wednesday, its shares soar as much as 13,031% in mere hours, The stock was halted more than 25 times for volatility and reached as high as US$656.54 after pricing its listing at US$5 per share, Bloomberg reports.
Then, just hours later, almost all that value was wiped out, plunging 95% and erasing more than US$19 billion in market value. Talk about a rollercoaster…
Addentax is now trading at around US$30, which is still likely way too high.
Addentax is just the latest in a long line of obscure Chinese businesses that have seen unbelievably volatile rises and falls on Western stock markets in recent months.
Due to the highly opaque nature of the Chinese economy – and how the Chinese state inserts itself into virtually every business in some way, shape or form – these flash-in-the-pan shitstocks are more than a little bit suspicious. They make /r/wallstreetbets look like Berkshire Hathaway.
Still, they’re a hell of a drug… And with much of the heat taken out of the crypto / NFT space as of late, investors looking for a rush have found they’re rather fun. More to come.
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