A Cynking ship
This is a chart of the share price and trading volume of Cynk, a technology company that was listed at $0.05 per share in May. Its $13.90 share price today makes it worth about $4 billion on paper (it was, at one point, up to $6 billion, but has since dropped). It has never had any revenues and no one is quite sure what it does.
This morning, the SEC and FINRA suspended trading on the stock because of concerns over market manipulation.
The weird movements in Cynk’s stock was first flagged by the finance blog Zero Hedge on Monday, and throughout the week went from a joke about the heights of the tech bubble in certain corners of the finance internet to a legitimate news story.
Theoretically, Cynk is a social network where you can pay people (like celebrities) a certain amount of money to be friends with you. Matt Levine explains: “You could pay Justin Bieber some money, and then when your friends are like ‘I’m going to a Justin Bieber concert this weekend,’ you could be all ‘oh, yeah, I’m friends with him on Cynk, nbd,’ and how would that not be worth it?” However, Levine was not able to get the site to work, and the company has never reported any revenue.
Here are more details about Cynk, from Reuters:
The Nevada corporation has a business address in Belize City, Belize, and its business description says it is in “development stage.” It has no reported revenue.
Its website, site.introbiz.com, has no phone number listed. A form for contacting the support group warns that it could take two days to respond.
The company’s primary shareholder, Marlon Sanchez, owns 72 percent of the 291 million outstanding shares. Sanchez is listed on SEC filings as the company’s president, chief executive officer, chief financial officer, chief accounting officer, secretary, treasurer and director.
Calls to the phone number listed in the company’s most recent quarterly filing with the SEC, dated Nov. 7, 2013, reached a message saying: “You have reached an unassigned number.”
Happy Friday, everyone.