Riot Blockchain Gets Hit by Another Shareholder Lawsuit

Source : Riot Blockchain Gets Hit by Another Shareholder Lawsuit After changing its name to Riot Blockchain in October to include the word “blockchain,” the public company watched its stock skyrocket from $8 a share to more than $38 during a cryptocurrency rally at the beginning of the year.The first significant problem was the company did not have any real focus on blockchain technology. Before October, Riot was known as Bioptix, a maker of diagnostic machinery for the biotech industry. The company also changed its ticker symbol to RIOT from BIOP.Another problem was that key shareholder Barry Honig got caught with his hand in the cookie jar, selling off a big stake of his shares at $38 per share after the name change.On February 22, 2018, law firm Robbins Geller Rudman & Dowd LLP announced it was filing a class-action lawsuit against Riot. The complaint charges Riot, along with Honig and company CEO John O’Rourke and CFO Jeffrey McGonegal, with securities violations.Specifically, the charges claim that despite its lack of blockchain expertise, Riot changed its name to generate investor enthusiasm to further an insider scheme that would allow Riot’s controlling shareholders to dump their stocks at grossly inflated prices.At least two other lawsuits have been filed against Riot and its principals, charging them with securities violations and false and misleading statements. These lawsuits follow a scathing investigation into Riot by CNBC on February 16, 2018, that raised questions about the company’s business model and Honig. In the wake of that report, shares tumbled 33 percent to $11.46. It is likely these class-action lawsuits may be the first of many to come against Riot. Shady ActivitiesOn October 4, 2017, Riot adopted its new name and headed off in a radical new business direction, announcing it was going to invest in and operate blockchain technologies with a focus on Bitcoin and Ethereum. The company had no previous business in blockchain technology, yet in press releases, Riot portrayed itself as a seasoned player in the space. “At Riot Blockchain, our team has the insight and network to effectively grow and develop blockchain assets,” said Riot’s then-CEO, Michael Beeghley, in a statement at the time. The company has a history of questionable activities. In December, Riot began purchasing cryptocurrency mining equipment. But rather than purchasing from the manufacturer or other suppliers, the company paid more than $11 million for equipment worth only $2 million by purchasing it through a newly formed shell entity.  Honig is also charged with exercising outside influence over the company’s business operations. Beginning in April 2016, long before the company changed its name to Riot, Honig began purchasing shares in the company. By December 2016, he had become the company’s largest shareholder, owning more than 11 percent of the company. He used that influence to nominate several new directors to the board, including O’Rourke. In addition to insider selling after the name change, other worrying signs about the company included: Riot lost two auditing firms in just one year, and …

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Gartman Loses Big On Biotech-Turned-Blockchain Stock

Source : Gartman Loses Big On Biotech-Turned-Blockchain Stock Advertisement Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month. Dennis Gartman, the longtime publisher of an investment newsletter and television commentator known as the “commodities king” famous for touting blockchain technology while dissing bitcoin, might be having second thoughts about placing retirement funds in Riot Blockchain Inc. Riot Blockchain lost a third of its value on Feb. 16 following a CNBC report about the biotech-company-turned-blockchain-startup. One Of His Worst Days On Tuesday, Gartman wrote that it was one of the worst days he has experienced in a long time, according to Bloomberg News. He was long of a sizeable position in the blockchain focused company when it fell victim to the CNBC expose that sent the shares down more than 20 percent. The fall sent Gartman down for the year after having been up 6%. In October, the Bioptix Inc. announced it was rebranding itself as Riot Blockchain following years of weak stock performance and revenue growth. In response, shares more than quadrupled, but the gains didn’t last. Shares of Bioptix, which manufactured diagnostic machinery for the biotechnical industry, had traded between $4 and $4.50 for the majority of September 2017, but they soared above immediately following the October announcement that the Colorado firm would make the leap into the burgeoning cryptocurrency industry. Bioptix said it would shutter its operations and liquidate its biotech patents as it transitions into Riot Blockchain. It cited its first foray in the blockchain industry as a multi-million dollar investment in Coinsquare, a Canadian cryptocurrency exchange. Gartman, who is 67, said lessons need to be continually relearned. Consistent Bitcoin Critic Gartman has been high on blockchain technology while he has consistently criticized bitcoin. He said in January he expects the bitcoin market will fall when its value drops to $5,000. He has criticized bitcoin for having no intrinsic value, and he recently said it makes the tulip bubble in 17th century Holland that sent the Dutch into a frenzy look almost like a “quiet, well demeanored market.” Featured image from Shutterstock. Follow us on Telegram.Advertisement

Gartman Loses Big On Biotech-Turned-Blockchain Stock

Source : Gartman Loses Big On Biotech-Turned-Blockchain Stock The post Gartman Loses Big On Biotech-Turned-Blockchain Stock appeared first on CCN Dennis Gartman, the longtime publisher of an investment newsletter and television commentator known as the “commodities king” famous for touting blockchain technology while dissing bitcoin, might be having second thoughts about placing retirement funds in Riot Blockchain Inc. Riot Blockchain lost a third of its value on Feb. 16 following a CNBC report about the The post Gartman Loses Big On Biotech-Turned-Blockchain Stock appeared first on CCN

Riot Blockchain's CEO is pushing back against critics and trying to convince the world his company is serious about …

Source : Riot Blockchain’s CEO is pushing back against critics and trying to convince the world his company is serious about … Riot Blockchain’s CEO is pushing back against critics and trying to convince the world his company is serious about …  Markets InsiderBitcoin Skeptic Dennis Gartman Duped by Dubious Blockchain Investment  Bitcoin News (press release)Dissecting Riot Blockchain’s Shareholder Update  Motley FoolFull coverage

Dennis Gartman Rekt By Blockchain-Pivot Scam After Calling Bitcoin ‘Nonsense’

Source : Dennis Gartman Rekt By Blockchain-Pivot Scam After Calling Bitcoin ‘Nonsense’ Popular commodities pundit Dennis Gartman revealed a “sizeable” position in a ‘blockchain company’ whose shares recently plummeted following an expose that revealed multiple red flags.  I Believe in the ‘Technology Behind It’ When asked about investing in Bitcoin in an interview with CNBC back in December, commodities guru Dennis Gartman proclaimed that he’s “not selling any of it” and “not buying any of it” because it is “nonesense.” Gartman, however, took the safe path that most traditional traders and bankers take, stating that he’s a “believer in the technology behind Bitcoin,” often referred to as Blockchain. He wasn’t lying. Shortly after, Gartman invested an undisclosed sum from his retirement account into a volatile stock called Riot Blockchain Inc., a biotech company that rebranded to a blockchain-startup, whose shares soared after the announcement. However, the commodities king probably did not anticipate what happened next. The stock shed over 30% of its value on February 16th after CNBC broadcast an investigative report, which raised some serious red flags about the company’s business model. Gartman defended his position, putting much of the blame on the expose. “Friday was one of the worst days we have suffered through in a very long while,” he wrote in his popular newsletter Tuesday, adding: We were long of a sizeable position in a blockchain focused company that was the victim of a CNBC expose, which sent the shares down more than 20 percent and which sent us ‘down’ for the year to date, having been up about 6 percent previously. Bitcoin ‘Nonsense’ Wins Again The news may come as poetic justice to Bitcoin proponents, particularly the enthusiastic ‘hodlers,’ who believe that the digitally-scarce asset will not only revolutionize, but completely disrupt, the current financial system, taking bitcoin price “to the moon.” “Lessons have to be learned again and again and again it seems,” Gartman continued. “Or at least we apparently have to learn them over and over and over again.” Indeed, the 67-year old investor should probably revisit his study materials — assuming he actually read them beforehand — on the latest trend for struggling companies rebranding to “blockchain companies” to boost stock price. Following the company’s sudden rebrand from Bioptix Inc. to Riot Blockchain, an October report from SeekingAlpha revealed several red flags that the investment guru should have probably noted. The fact that the company’s official corporate address was a mail drop adjacent to a Blimpie’s in a Colorado strip mall is just one of several red flags that many “nonsense” Bitcoiners would have known to avoid.  Meanwhile, Bitcoin price has recovered considerably since its $6,000 spot price low in recent weeks, currently trading at $10,500. Should traditional finance pundits be tarred and feathered? Let us know in the comments below!  Images courtesy of CNBC, Shutterstock, and cryptograffiti. The post Dennis Gartman Rekt By Blockchain-Pivot Scam After Calling Bitcoin ‘Nonsense’ appeared first on Bitcoinist.com.

Bitcoin Skeptic Dennis Gartman Duped by Dubious Blockchain Investment

Source : Bitcoin Skeptic Dennis Gartman Duped by Dubious Blockchain Investment This post was originally published on source‘Commodities King’ Dennis Gartman has been left with a red face and diminished pension fund after investing in a dubious blockchain company. Shares in Riot Blockchain Inc plunged by 30% following a CNBC investigation, leaving Gartman’s fund in a negative balance for the year to date. The trader has […] The post Bitcoin Skeptic Dennis Gartman Duped by Dubious Blockchain Investment appeared first on The Bitcoin News – Leading Bitcoin and Cryptocurrency News since 2012.

Bitcoin Skeptic Dennis Gartman Duped by Dubious Blockchain Investment

Source : Bitcoin Skeptic Dennis Gartman Duped by Dubious Blockchain Investment This post was originally published on source‘Commodities King’ Dennis Gartman has been left with a red face and diminished pension fund after investing in a dubious blockchain company. Shares in Riot Blockchain Inc plunged by 30% following a CNBC investigation, leaving Gartman’s fund in a negative balance for the year to date. The trader has […] The post Bitcoin Skeptic Dennis Gartman Duped by Dubious Blockchain Investment appeared first on The Bitcoin News – Leading Bitcoin and Cryptocurrency News since 2012.

Bitcoin Skeptic Dennis Gartman Duped by Dubious Blockchain Investment

Source : Bitcoin Skeptic Dennis Gartman Duped by Dubious Blockchain Investment Blockchain ‘Commodities King’ Dennis Gartman has been left with a red face and diminished pension fund after investing in a dubious blockchain company. Shares in Riot Blockchain Inc plunged by 30% following a CNBC investigation, leaving Gartman’s fund in a negative balance for the year to date. The trader has previously described bitcoin as being “nothing more than a scam of the first order.”Also read: 30 People Who Were Really Wrong About BitcoinGartman Gets Rekt by the Blockchain MemeThere was more than a touch of schadenfreude in the crypto community when news of Dennis Gartman’s poor investment emerged this week. Every trader is bound to get things wrong on occasions, but in going long on Riot Blockchain Inc, Gartman appears to have gone against his own advice. By his own admission, the author of the eponymous The Gartman Letter doesn’t fully understand bitcoin. His decision to invest heavily in a company purporting to make use of bitcoin’s underlying ledger technology is thus a strange one.Dennis Gartman has been involved in the markets since the 1970s, and by all accounts has done well for himself. In 1987 he began producing The Gartman Letter, which goes out to leading banks, brokerages, mutual funds, and hedge funds on a full-time basis. On Tuesday he was forced to deliver bad news to the letter’s subscribers:Friday was one of the worst days we have suffered through in a very long while. We were long of a sizeable position in a blockchain focused company that was the victim of a CNBC expose, which sent the shares down more than 20 percent and which sent us ‘down’ for the year to date, having been up about 6 percent previously.In October the company, then trading as Bioptix, changed its name to Riot Blockchain. By December 19 its share price had shot up to $38.60 from around $5 in October. It couldn’t sustain that momentum however and has been dropping ever since. A CNBC investigation into the firm last week shaved 33% off its stock in a single day, which is now trading for under $11. The CNBC article quotes SEC chairman Jay Clayton as saying: “Nobody should think it is OK to change your name to something that involves blockchain when you have no real underlying blockchain business plan and try to sell securities based on the hype around blockchain.”Believe the Blockchain But Don’t Believe the Blockchain HypeAs Bioptix, the company had been known for filing veterinary patents, which makes its reinvention as blockchain innovator all the harder to fathom. One might have suspected an investor of Mr Gartman’s stature to have exercised more caution and diligence. “Lessons have to be learned again and again and again it seems,” finished Gartman glumly, “Or at least we apparently have to learn them over and over and over again.” Two months ago, the same Commodities King was telling CNBC that bitcoin was nonsense. As he is now learning, bitcoin is …

Plus…Bitcoin Skeptic Dennis Gartman Duped by Dubious Blockchain
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Bitcoin Skeptic Dennis Gartman Duped by Dubious Blockchain Investment

Source : Bitcoin Skeptic Dennis Gartman Duped by Dubious Blockchain Investment ‘Commodities King’ Dennis Gartman has been left with a red face and diminished pension fund after investing in a dubious blockchain company. Shares in Riot Blockchain Inc plunged by 30% following a CNBC investigation, leaving Gartman’s fund in a negative balance for the year to date. The trader has previously described bitcoin as being “nothing more than a scam of the first order.”Also read: 30 People Who Were Really Wrong About BitcoinGartman Gets Rekt by the Blockchain MemeThere was more than a touch of schadenfreude in the crypto community when news of Dennis Gartman’s poor investment emerged this week. Every trader is bound to get things wrong on occasions, but in going long on Riot Blockchain Inc, Gartman appears to have gone against his own advice. By his own admission, the author of the eponymous The Gartman Letter doesn’t fully understand bitcoin. His decision to invest heavily in a company purporting to make use of bitcoin’s underlying ledger technology is thus a strange one.Dennis Gartman has been involved in the markets since the 1970s, and by all accounts has done well for himself. In 1987 he began producing The Gartman Letter, which goes out to leading banks, brokerages, mutual funds, and hedge funds on a full-time basis. On Tuesday he was forced to deliver bad news to the letter’s subscribers:Friday was one of the worst days we have suffered through in a very long while. We were long of a sizeable position in a blockchain focused company that was the victim of a CNBC expose, which sent the shares down more than 20 percent and which sent us ‘down’ for the year to date, having been up about 6 percent previously.In October the company, then trading as Bioptix, changed its name to Riot Blockchain. By December 19 its share price had shot up to $38.60 from around $5 in October. It couldn’t sustain that momentum however and has been dropping ever since. A CNBC investigation into the firm last week shaved 33% off its stock in a single day, which is now trading for under $11. The CNBC article quotes SEC chairman Jay Clayton as saying: “Nobody should think it is OK to change your name to something that involves blockchain when you have no real underlying blockchain business plan and try to sell securities based on the hype around blockchain.”Believe the Blockchain But Don’t Believe the Blockchain HypeAs Bioptix, the company had been known for filing veterinary patents, which makes its reinvention as blockchain innovator all the harder to fathom. One might have suspected an investor of Mr Gartman’s stature to have exercised more caution and diligence. “Lessons have to be learned again and again and again it seems,” finished Gartman glumly, “Or at least we apparently have to learn them over and over and over again.” Two months ago, the same Commodities King was telling CNBC that bitcoin was nonsense. As he is now learning, bitcoin is perfectly …

Plus…Bitcoin Skeptic Dennis Gartman Duped by Dubious Blockchain
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