Stablecoin Development Corp, which has been trading around a minimal $50 million marketcap for months, has suddenly seen its price jump tenfold in a matter of two weeks for absolutely no reason whatsoever
Tether is a major investor in the company, whose primary business appears to be earning interest off of USDS — not a necessarily lucrative business opportunity
While the $50 million market cap for Stablecoin Development Corp was perhaps low for a company with over $150 million in assets and little debt, the company was, for a brief moment in time, trading at nearly $10 today — a $500 million market cap for a stablecoin treasury company with far less than $500 million in assets
Its stock has since fallen to roughly $4.50 per share, also on no news
While short sellers have basically been unable to find affordable shares for shorting, the value of the company has continued to rocket upward since September 25. There’s been no identifiable reason for Stablecoin Development Corp to go up in value so quickly
Four days after the company saw unusual trading activity it filed with the SEC to say that it had no idea why it was occurring or who was behind the trades
The company also stated that it “does not believe corrective actions are appropriate.”
Meanwhile, Tether has warrants related to Stablecoin Development Corp that will be available to exercise in mid-October
These warrants which had more or less been a write-off up until this point suddenly appear far more valuable
It’s also safe to say that Stablecoin Development Corp is no longer facing any delisting dangers from the NYSE American
