Julie Lamb

About the Author Julie Lamb

Julie graduated with a Bachelor of Arts in English with a focus on creative writing from the University of Louisville.

Riot Blockchain Inc (RIOT) Stock Gets Whacked on Back of Crypto Crackdown Worries


Riot Blockchain Inc (NASDAQ:RIOT) shares have been stripped of 25% in value in the last 24 hours. In a past evolution, Riot rode the biotech waves as a healthcare player by the name of Bioptix, but since went through a rebranding. Not the first company to try to capitalize on the volatile crypto craze, especially following a lousy string of performances as a mere biotech company, Riot grabbed a foothold in the blockchain ecosystem in October.

For context, one of the company’s key investments is a bitcoin mining operation coupled with a holding in Coinsquare, one of Canada’s biggest cryptocurrency exchanges. Today, it looks like Riot’s lifeline might be coming back to bite.

The crypto storm had been burning up the Street, with the market surging ahead of a colossal $800 billion just a week and a half ago, with king of the crypto-verse Bitcoin taking a historic jump short of $20,000. Did yesterday mark the early days of the end of the golden era Bitcoin investors have relished over the past year? The leading 10 digital currency leaders of the crypto game suffered in one fell swoop yesterday, taking even Bitcoin down 14%.

The very faze that had Wall Street racing to buy into the Bitcoin bubble is from one day to the next sending investors scrambling in the aftermath of the popped bubble. In the world of volatile trades, the companies that were able to take advantage by hitching themselves to the Bitcoin wagon are now bearing the brunt of the pendulum’s downswing. A sudden turn like this can be unforgiving for a company like Riot that had sought out crypto as a necessary rebirth for its business model.

What was the needle that punctured the bright Bitcoin bubble? Investors are worried that regulatory crackdowns will run loose in the decentralized playing field, with whispers of South Korea contemplating a ban on crypto trading. This is particularly worrisome for investors who recognize South Korea’s key base that has in many ways been the root of crytpomania. Bad news often travels in pairs, and Bitcoin is no different, with Bloomberg already pointing that on the heels of local crypto exchanges being pulled, Chinese authorities were likewise continuing to squeeze the ecosystem: residents are set to be blocked from bitcoin trades as far as foreign exchanges are concerned.

The worst apprehensions running amiss: is the Bitcoin boom about get absolutely wrecked by government regulation dismantling a currency that could be deemed intimidating to traditional currencies? If the bubble is set to erupt, investors could be drained after heavy financial losses- leaving shareholders of players like Riot quaking in their boots, anxious to watch what happens (or unravels) next.

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts