Why This Stock Going to $0 is Good News for You

By Matthew Milner, on Wednesday, May 23, 2018

At Crowdability, Wayne and I help you earn big gains from exciting investments like start-ups and crypto-currencies.

But we also do something else:

We aim to protect you — especially by helping you steer clear of investments that are “too good to be true” or downright scams.

So today, I’d like to tell you about a stock that’s going to $0…

And then I’ll explain why this could be such good news for you.

First, an Iced Tea Company…

A couple of months ago, we wrote a special article to warn you about something…

We warned you to stay away from “crypto stocks.”

You see, there’s a lot of “penny” stocks out there that position themselves as crypto-currency or blockchain companies... but in reality, they have nothing to do with cryptos.

As we explained, many are “pump and dump” schemes looking to fleece investors. And as an example, we introduced you to a company called Long Island Iced Tea Corp…

As its name implies, the company is based in Long Island and makes iced tea. In fact, here are some of its products:


But hoping to profit from all the excitement around cryptos, it announced it was changing its name to “Long Blockchain Corp” (NasdaqCM: LBCC) and shifting its focus to develop “scalable blockchain technology solutions”...

And Now, a Crypto Company

And — voila — just as it had hoped, its shares rose by about 500%!

But in an article we published for you in April, we called foul — and today we wanted to give you an update, because the SEC just called foul, too:

It stated that, “[Long Blockchain] made a series of public statements designed to mislead investors and to take advantage of general investor interest in bitcoin and blockchain technology.

As a result, the company received a delisting notice from the NASDAQ…

And its shares quickly went from a recent high of $7, to about 48 cents, where they’re trading today. And now they’re probably on their way to $0.

This is a classic “pump and dump” strategy. We saw the same thing happen during the dot com bubble of the late 1990s:

When tiny penny stocks added “dot com” to the end of their name, their share price would rocket to the moon. But as soon as the market realized they weren’t legitimate Internet companies, their prices tanked — and investors like you lost their shirts.

Now it’s the same thing all over again with cryptos…

In fact, The Wall Street Journal recently did an analysis of 1,450 crypto-currencies, and it found 271 instances of “red flags” including plagiarized investor documents, promises of guaranteed returns, and fake executive teams.

Keep Your Eyes Open

To be clear, we’re not going negative on cryptos — far from it:

Cryptos represent perhaps the most exciting new asset class we’ve seen in our lifetime.

That’s why some of the best investors in the world are diving in head first — from Peter Thiel, the first investor in Facebook, to legendary hedge fund manager George Soros, who Wikipedia calls “one of the world's most successful investors.”

And that’s why ordinary investors like you should get in early — this is how you can give yourself a shot at making a fortune.

But with so much potential for profit, and so much excitement, the sharks have started to circle…

And if you don’t have your eyes open, the sharks could take a big bite out of your bank account.

To stay aware of what’s happening in this sector — and to make sure you steer clear of scams and sharks — keep reading the Crowdability newsletter.

Each week, we aim to introduce you to new and “alternative” ways to make money...

But we also aim to keep you safe.

Happy investing.

Best Regards,
Matthew Milner



If you enjoyed this article, subscribe to updates:

Sign-up today and you'll receive our daily insights on early-stage investing, as well as our FREE "Equity Crowdfunding Action Kit" – where you'll learn:

  • The Ins & Outs of Equity Crowdfunding
  • A step-by-step path to get started
  • Tips from dozens of Venture Capitalists
subscribe to updates

Thank you for subscribing!

Tags: Cryptocurrencies

Share This:
comments powered by Disqus