Sharpink Gaming sports betting platforms dropped 73% on after time trading on Thursday after filing to register a large volume of shares for potential resale because the firm was about to bet on Ether.
However, Gaming Sharpink chairman Joseph Lubin, who is also the CEO of Blockchain Software Firm Consensys, said the market observers made a mistake.
Lubin says he’s not selling shares
Lubin Says In a post on Wednesday that “some are incorrect interpretation” form S-3 by Sharpink File The Securities and Exchange Commission includes registering the potential resale of nearly 58.7 million common shares.
Lubin reiterated that it registered for the “potential resale” of shares, not an actual sale. “This is the usual post-pipe method in Tradfi, not an indication of actual sales,” Lubin said.
File will come as the company prepares for a significant ether (Eth) purchase as part of the newly announced approach to Treasury based on Ethereum.
Sharpink Gaming (SBET) shares closed Thursday exchanged 12.25% to $ 32.53 and dropped an additional 73% after time under $ 8 in filing, According to In Google Finance.
It has been slightly recovered and dropped by 67.6%, trading at $ 10.55, at the time of publication.
General Advice of Consenys Matt Corva Says That filing is “not reflecting anyone’s sales, which may or may not happen, I have no idea. But this is a major file.”
Sharpink filing is not a new announcement
Corva said the news was announced that two weeks ago, and “This is the official statement that says yes, SBET sold shares to investors, and they count.”
On May 30, Sharpink Gaming said this Plans to sell up to $ 1 billion on average Shares, including most of the proceeds intended to get ETH, just days after it is said that it is taking a correspondent approach to Ethereum.
Lubin made it clear that he also did not sell any shares. Consenys recently led the $ 425 million Sharpink Gaming fund for Ethereum treasury strategy.
Related: Ethereum Whale opens $ 11M leveraged bet amid 30% ETH price increase
CEO of BTCS Inc. Charles Allen Commented that the filing clearly motivates panic over existing shareholders. “It creates a prisoner’s dilemma: everything is in a hurry to sell before others do – a classic race to the bottom,” he said.
Allen suggested that the firm could reverse losses by announcing their expected $ 1 billion Ether purchase tomorrow. “If they are playing cards correctly they will expect a surprise PR tomorrow with $ 1B of ETH purchases – which can lightly match to reign the stock,” Allen said.
“They may play it well,” he said.
Magazine: Older investors are at risk for a crypto -funded retirement
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
