At the moment, there are many dangerous trends associated with blockchain technology. Companies that are not doing well announce plans to get involved in cryptocurrency activities, and their stock prices begin to skyrocket. This is one of the most popular price speculation schemes. However, for Riot Blockchain, this decision took a very unexpected turn.
The Securities and Exchange Commission (SEC) sent a formal request for information in connection with the company's decision to change its type of business. Although Riot Blockchain claims to be ready to answer all questions, it is unclear what its actual plans are going forward. What is clear is that the firm has decided to move into the blockchain and futures space. While both of these industries are quite attractive to companies around the world, not all intentions are legal.
Naturally, the SEC requested detailed information about the plans of the Riot Blockchain company, because previously the company was engaged in activities in the field of biotechnology and was called Bioptix. The connection between biotechnology and cryptocurrency is not particularly visible, and the company's decision to enter this market has always been considered somewhat controversial. Following the name change, the share price peaked in December 2017. Since that time, the value has dropped significantly, coinciding with the decline in the price of Bitcoin.
In accordance with its plans to change its business, Riot Blockchain has acquired several cryptocurrency companies, products and services. Currently, the company has its own Bitcoin mining equipment and a BTC portfolio. In addition, the company has hired experts who are working on the development of blockchain technology. Despite this, the SEC is concerned about what the company is doing and plans to do in the future.
It is possible that Riot Blockchain's shares will be delisted from the Nasdaq exchange if it does not hold an annual shareholder meeting. So far, Riot Blockchain has set a tentative date for such a meeting in May. The company has already rescheduled its meetings several times and should still hold them this time, given how closely it is being watched by regulators.
While Riot Blockchain may have the best of intentions, its behavior over the past few months has raised many questions. Solving these problems is not that difficult, but scrutiny from the SEC is certainly not what founders are currently expecting. However, it is very important for the agency to ensure that market players do not speculate on the price of shares by making unsubstantiated statements.
According to https://themerkle.com
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