LFIN Crashes After-Hours When CEO Admits "We Don't Deserve This Market Cap"

Update: Much to his credit, Venkat Meenavalli, the CEO of LongFin ventured onto CNBC's FastMoney tonight to explain the exponential rise and somewhat shady acquisition strategy of his company.

Amid an increasingly rapid eruption of words - "I'm a shadow-banking guy" - and rising volume, Meenavalli seemed to struggle to convince the Fast Money skeptics that what he did was above-board, initially attempting to blindside Brian Kelly by arrogantly claiming "you don't understand." However, once it became clear that Kelly not only 'understood' but saw the glaring inconsistencies, the LongFin CEO backed away and admitted "we don't deserve this market cap."

The result is evident...

But don't feel to obad for Meenavalli, he also admitted that he owns 140 Bitcoin.

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Update: We suspect few had looked at the company's balance sheet (note that LFIN had a market cap over $10 billion at today's highs!)...

But now they have, 'all bets are off'...


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Update: And the halts just keep coming...

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Update: After its 7th halt of the day, LFIN reopened and instantly collapsed by over 50%...

And now it is halted again!

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Update: Well that escalated quickly...

The stock is now up over 500% today and has been halted numerous times...


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Having closed last Thursday on its IPO-day at $5.38, news of the acquisition of Ziddu - a blockchain solutions provider (whatever that means in the real world) - LongFin has since exploded to $44.80 in today's pre-market... up 730% in 2 days.

Remember LongFin? an independent finance and technology company. The Company offers commodity trading, alternate risk transfer, and carry trade financing services. LongFin also provides hedging and risk management solutions to importers, exporters, and small medium business enterprises. LongFin serves customers worldwide.

As iBankCoin notes, it has all of the trimmings of wanton degeneracy on an industrial scale.

  • Recent IPO: check
  • Small float: check
  • Shady as heck: check
  • AI company: check

and the cherry on the top...

  • a day after coming public, they announce the purchase of a blockchain company: check

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On Thursday Dec 14th, LongFin launched as a FinTech company that helped with FX hedging (and slipped from its post-IPO open price to close lower)

US-based Longfin Corp., a Fintech company providing Finance and foreign exchange hedging solutions to importers and exporters and SMEs, started trading on Nasdaq from today.
According to a statement issued by Longfin, its Low Latency Network is connected to multiple exchanges and banks across the regions to provide the cheapest Forex hedging and low-cost financing to small and medium-size importers and exporters across the globe.
Longfin Founder Venkata S. Meenavalli said, "We are the first Asian Entrepreneur promoted Reg A+ company under JOBS Act, to list its shares directly in Nasdaq and the second Indian entrepreneur promoted company to list directly in the Nasdaq since 2010"

On Friday Dec 15th, they acquired Ziddue and became the future face of Cyrptocurrency awesomeness...

Longfin Corp. (NASDAQ: LFIN), a leading global FinTech company, announces the acquisition of Ziddu.com, a Blockchain-empowered solutions provider that offers Microfinance Lending against Collateralized Warehouse Receipts in the form of Ziddu Coins.

And with all those buzzwords, why wouldn't it be up 730%!!!!

As a reminder, there are no financials on this company, no reg details on shares outstanding, and no direct evidence of a business model that makes any money?


CaptainGoodLove Dec 18, 2017 11:07 PM Permalink

Oh- it was all going so well. Why the hell would you go on TV and talk down your own company!?!  Something not right here.I'm in for free now after selling enough at $130. But may take 6 months to go there again - if ever?Was fun whilst it lasted all of 2.5 days lolPS. New all time highs by end of week - FTW!!    

buttmusk Dec 18, 2017 7:31 PM Permalink

And the Fed doesn't see any signs of a bubble. Next IPO will launch with blockchain or crypto in the company name and watch the stock go to the moon. i've seen this movie before

falak pema Dec 18, 2017 6:24 PM Permalink

this is the world of the Duck's Tax rebate...Watch the fallout...Longfin becomes Asianman sharkfin!I thought the Duck said : "You can't lose with me, as God loves ME n u!" Ooops, that is an old lesson of fake news, as old as Bernard of Clairvaux!  it didn't woik then.When it comes around... you duck like the Duck of all Daffy twitter quacks.

JethroBodien Dec 18, 2017 3:06 PM Permalink

Just thought about putting in a $40.00 limit order that expires in a couple of days.  Then came to my seneses when I realized the stock is up 60+ points today alone.  Will be watching next couple of days to see if there is a much lower entry point.Could have bought it a few days ago at around $16.00

Anteater taketheredpill Dec 18, 2017 2:45 PM Permalink

MicroFinance lending typically earns 35% interest.Collateralized warehouse receipts is actual stuffin real warehouses that will be sold off at retail forbetween 600% and 1200% markup. So yes, it hasa business model, and an actual currency value.And it appears it will generate its own block-chainfinancing in order to make the CDO inventory loans.Brilliant idea, why didn't someone think of it first?Think how much US retail is frozen in warehouses,what you could do with that, even at 35% interest.The only flaw is dead inventory that is never goingto be sold off: FinTech Coin Big Navy. FTC Target,FTC Sears, FTC Nordstroms, FTC Ivanka's Stuff. Sad.Recapitalizing Stuff is still better than buying Satoris,holding VapeCoin, waiting for the Next Greater Sucker.

In reply to by taketheredpill

JibjeResearch Dec 18, 2017 2:29 PM Permalink

Stay away from an IPO, especially an IPO that intends to buy a blockchain technology and brags about it.  This is just wall street money riding on blockchain and crashing it.There's a civil war, Traditional finance vs blockchain, discrediting is the game.

Paracelsus Dec 18, 2017 2:18 PM Permalink

  Bretton-Woods was a hand grenade with a long fuse lit the very first dayit was signed. All the world's currencies would be pegged to the dollar,and the dollar would be pegged to gold at $60 an Oz. This was the ultimate"Emperor has no clothes on" situation.The Central Banks could legally exercise convertibility from "fiat" to "physical",but there was a gentleman's agreement that no one would use the gold window.(There is an implied military threat in this unwritten agreement).  France was battered financially and the French empire was sinking during the sixties.The US war in formerly French Indochina (Vietnam) was very inflationary, and required a great deal of money printing. The US was exporting inflation to contain the damage to theUS economy. So the French collected the piles of paper money, and sent a Navy cruiserto the US to convert the paper into gold (this was 1971). Nixon scrapped the Bretton-Woods agreement and currencies have been floatingever since. This was correctly seen as a default by the worlds bankers but they kept silentso they and their families would not get nailgunned.  The Saudis implemented the petro-dollar system to prop up the US by frightening them withthe Russian boogie man and promises of great wealth (Kissinger).Now the money has off-shored, the oil is depleted and the mideast peoples are leftwith rusting military equipment and ornate palaces.Like with any Ponzi, the grifters have left town,only this time in yachts the size of moderndestroyers.

Anteater Paracelsus Dec 18, 2017 2:55 PM Permalink

And here comes Satoshi, sailing into harbor in a great plastic showerstall. A golden bathtub 'ship', if you believe the Next Greater Suckers.A Revival plastic bath of AI smoke and promises. A Ship of Dreams,one whose time has come. US retail is a rotting wharf, crowded withbait fishermen and alcoholic stock holders, buying back their shareswith old fiat, because that's all they've got. That, and PayDay loans. 

In reply to by Paracelsus

VWAndy Dec 18, 2017 1:48 PM Permalink

 CALLING ALL CRACKHEADS! Jump in now. You could be rich! Dont miss the boat! A once in a lifetime oppertunity! Buy this time next week you could be on the beach for good.  lol Suckers.

spastic_colon Dec 18, 2017 1:05 PM Permalink

so let see.....up 500% down 50%........still up 250%.....only another 100% down to go from here to get to fair value....and if I see this correct only another 250,000 shares traded after the halt was lifted and then halted again.

Snaffew Dec 18, 2017 12:28 PM Permalink

bitpetz.com soon to IPO...it's a blockchain that enables you to buy and sell services and amenities for your pets.  GS to auction 500 million shares at an IPO price of $600....get in now while you can...this will be a game changer!

Sizzurp Dec 18, 2017 10:55 AM Permalink

Just like the dot com days when all you had to do was put .com at the end of your company’s name and your stock went to the moon. Now you just say blockchain and boom. History rhymes.