This Stock Exploited a NASDAQ Loophole to Gain a Staggering 3,000%(+) in Under 7 Days
A small software company planning to launch a custom cryptocurrency saw its stock skyrocket after taking advantage of a Nasdaq loophole. | Source: Shutterstock
Phunware is a company that has largely posted losses. According to the Wall Street Journal, the company lost almost $26 million in 2017 and another $3 million during the first half of 2018. Nonetheless, the last couple of months have seen wild trading for PHUN.
PHUN shares saw a 52-week high of $550 on January 10th. Such prices will likely never be seen again.
PHUN Hits $550 A Share – With Most Outstanding Shares “Restricted”
PHUN rose from a long-running average of $10 per share at the end of December to a blip 52-week of $550 by the middle of January. The problem? Only 144,000 shares were actually trading. NASDAQ requires a minimum of 1 million publicly available shares, but this figure can include restricted shares. The majority of Phunware’s stock was not available for trading, meaning, much like Bitcoin, the actual liquidity of the symbol was very unclear to traders.
The spike to $550 was so quick it didn’t register on most candles, but NASDAQ and the Wall Street Journal both recorded the anomaly. PHUN closed at $157 on that day (January 10th.) The Austin-based company announced last June that it was planning to launch a digital currency, which is part of what fueled speculation about the company’s turnaround. Randall Crowder, COO of Phunware, said at the time:
We want to create the first fully compliant, gold-plated cryptocurrency that everyone else can point to.