Longfin Corp (NASDAQ: LFIN) stock crashed over 47.5% on March 29th, 2018 (As of 1:33 PM GMT-4; Source: Yahoo finance) as the stock was removed from the Russell indexes on the back of the insufficient free-floating shares as of Feb. 14 as per a report from CNBC. Moreover, the stock sentiment was dampened after a tweet from Citron Research by Andrew Left who sees the stock as a pure stock scheme.
The stock came in focus last year given its bitcoin acquisition and was added in the small-cap Russell 2000 and 3000 indexes on March 16 as part of FTSE Russell’s quarterly additions. In January, the group’s options started trading for February 16, 2018, March 16, 2018, June 15, 2018, and September 21, 2018 contract expiration. The group also entered into a securities purchase agreement with a multibillion-dollar fund. The institutional investor is investing $52,700,000 through convertible note instruments. During this funding, management reported that they were confident in their goal of reaching a 250% revenue growth rate organically while surpassing their growth rate in 2017. The group also believed that this funding would also help Longfin in its acquisition endeavors within the Blockchain powered Smart Contracts and FinTech space across the globe.
This year, the group also made their Ziddu Smart Contracts commercially available on the Ethereum blockchain. Ziddu.com is an ERC 20 Ethereum-Blockchain-empowered Smart Contract provider, and it is currently the only marketplace for decentralized smart contracts. Ziddu Smart Contracts are currently available for Trade Finance and FX markets, while the group intends to launch Smart Contracts for bullion financing within the second quarter of 2018. There are subsequent plans to make the Contracts available for peer-to-peer lending, warehouse financing, structured products, and FX/OTC derivative segments.
For 2017, the group reported a revenue of $28.119 million while the Profit After Tax was $1.777 million. The stock rose over 2600% in the December week of 2017 when they announced that they were a Crypto Company