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LongFin CEO Talks Stock's Huge Run, Ziddu Coins: 'We Don't Deserve This Market Cap'

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LongFin CEO Talks Stock's Huge Run, Ziddu Coins: 'We Don't Deserve This Market Cap'
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Longfin Corp (NASDAQ: LFIN) is on a pretty incredible two-day run, moving from under $10 a share to north of $140. What gives?

The company announced Friday it acquired Ziddu.com, a blockchain-empowered solutions provider that offers microfinance lending against collateralized warehouse receipts in the form of Ziddu coins. Ziddu coins are loosely pegged to the price of bitcoin and ethereum, two of the largest cryptocurrencies.

Longfin's stock peaked at $142.82 Monday morning before closing around the $72 level. The level of volatility seen in the stock is consistent with the triple-digit percentage gains over a very short period of time seen in other cryptocurrency-related plays.

Longfin CEO Venkat Meenavalli appeared on CNBC Monday evening to talk about the stock's crazy price action.

CNBC's Melissa Lee questioned why this news wouldn't have been mentioned before the company entered the public market on Dec. 13. He said the company followed Reg A codes with regard to its purchase of Ziddu, of which he is a majority owner. He said Ziddu.com won't be profitable this year, and will make $3 million next year.

'Insane'

Meenavalli also expressed some cautious sentiment on the stock's run. He said the huge move could be attributed to a short squeeze, as the stock has a low float.

"We don't deserve this market cap," Meenavalli said amid a somewhat heated back and forth discussion. He said the resulting market cap after Monday's run is "insane."

Meenavalli said he can lock up his shares for three years as he has no intention to sell. The entire 11-minute segment can be found here.

LongFin's stock closed at $72.38, up 228 percent on the day. At time of publication, the stock was trading around $65 per share in the after-hours session, down about 12 percent.

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Earnings Scheduled For December 19, 2017

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