SEC Suspends Trading in Bitcoin Penny Stock, 3rd One This Month
The SEC announced a trading suspension on American Security Resources (ARSC)on August 24th.
Technically it's not even called American Security Resources anymore as they recently changed their name to Bitcoin Crypto Currency Exchange Corporation.
Savvy investors should have known something was up the second they read the name of the company separating "crypto" and "currency" in the word "cryptocurrency".
Very rarely do you see the two words split up like that when it's being talked about by people within the industry.
Either way, that must have been a red flag for the SEC as well because they halted trading in the stock just a few weeks after the name change.
Specifically this was the release from the SEC regarding the suspension:
"The Commission temporarily suspended trading in the securities of ARSC because of questions that have arisen regarding the publicly available information about the company in press releases on OTCMarkets.com dated August 1st and August 8th, 2017 concerning, among other things, the company's business transition to the cryptocurrency markets and early adoption of blockchain technology."
Basically, it sounds like good ol ARSC was trying to take advantage of the recent popularity surrounding Bitcoin and cryptocurrency in general and was looking to ride the wave.
The SEC didn't like that idea very much.
This suspension of trading marks the 3rd Bitcoin related penny stock suspension within the last month.
The first penny stock to be suspended was CIAO Group.
Next was First Bitcoin Capital.
I wrote about them a few days back, more about it can be read here:
https://steemit.com/bitcoin/@jrcornel/sec-suspends-trading-in-bitcoin-penny-stock
First Bitcoin Capital recently announced that they will push back against the SEC to have their suspension lifted.
They can announce it all they want, however, in all my years of following the OTC markets, I have never seen the SEC reverse a suspension and subsequent delisting of a security.
They don't suspend trading unless they have concrete evidence of wrong doing.
My thoughts:
My advice to anyone out there that is currently holding any OTC equities related to Bitcoin or Cryptocurrency is to sell them immediately before the SEC pays your stock a visit...
If they haven't suspended it yet, that doesn't mean your stock is out of the woods yet, infact it likely just means they haven't gotten to it yet.
Besides, it's likely better to own the real thing.
Either that or just wait for futures and options markets to come out later this year. Also, I would imagine an ETF is soon to follow as well.
Stay informed my friends.
Sources:
https://www.coindesk.com/third-in-a-month-sec-moves-to-halt-otc-trading-for-bitcoin-firm/
Image Sources:
https://iowaworkcomplaw.com/tag/fraud/
Follow me: @jrcornel
Great advice @jrcornel get out of these crypto penny stocks and own the real thing!
I have talked to several people that owned these Bitcoin related penny stocks. Luckily for them, they got out before the SEC stepped in. Made a nice return on their investments. However, they are likely the lucky few...
It seems that most of those stocks are either garbage or outright scams.
No reason to tempt fate with them.
Hell there are enough legit spec cryptocurrencies that could pay off thousands of times a return.
Agreed. Most of them are just trying to attach their name to Bitcoin and cryptocurrency in hopes that naive investors will buy their stock.
Yes and a lot of people with brokerage accounts that want to get into the crypto space but have no technical understanding of how to purchase or hold crypto are the ones most at risk. Education is key to helping the migration to crypto through a safe path.
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nice
Please follow back, resteem and upvote me :)
Thank you.
Wow didn't see this before ill be sure to read into it
Another day, another penny stock bites the dust. Meanwhile, Steem is still a steal and a half at under $2 right now...
My thoughts exactly. I think steem is going to have it's day (or weeks) in the sun within the next couple months. People are going to be wishing they had bought at $1.50... is my prediction.
I know I am looking to get myself some....just in the process of moving things around.
@heymattsokol - Gotta say your profile image is one of the most simple, yet creative, yet dizzying I've ever seen.
Please follow back, resteem and upvote me :)
Thank you.
My friend had some positions in these and just got out. He made off like a bandit so it'll be interesting to see what happens moving forward. As mentioned, an ETF would be very attractive for somebody that is interested but does not want to devout too much time to investing in crypto.
Yes, and I am sure it will be here soon enough... too much money to be made.
For all their faults, the SEC does a good job in areas like this.
Now if they would just halt the trading of half the markets Goldman is manipulating.
Haha yes I agree! It would be nice if there was a way they could halt these scams without causing massive losses for the retail investors that get caught up in them.
When you have a shitty company, just change the name to the new Hype/Technology hoping that some investors will not look into it.
I am surprised that the SEC reacted so fast.
Beware my friends !
is it real bitcoin ??
anyone can confirm the state of bittrex with this policy?
whaat really gota watch the in
congratulation bro your post now in hot list