Stablecoin Development Corp Shares Surge Tenfold Without Apparent Reason

Stablecoin Development Corp, which had been trading for months with a minimal market capitalization of around $50 million, suddenly showed a tenfold price increase over two weeks without any apparent reasons. The company's main business is believed to be income from interest on USDS, which is not necessarily a profitable opportunity. Tether is a major investor in the company. With a market cap of $50 million for a company with assets exceeding $150 million and minimal debt, the valuation seemed low, but for a brief period, shares soared to nearly $10, giving a market cap of around $500 million with assets significantly below that amount.

Since then, shares have fallen to about $4.50, also without any news. Short sellers can hardly find available shares to short, while the company's value continues to rise since September 25. There are no identifiable reasons for such rapid growth. Four days after the unusual trading activity, the company filed with the SEC stating that it does not know the reasons and does not understand who is behind the trades. The company also stated that it "does not consider corrective measures appropriate."

Meanwhile, Tether has warrants related to Stablecoin Development Corp that can be exercised in mid-October. Until now, these warrants were considered nearly worthless, but now they appear significantly more valuable. It can also be confidently stated that Stablecoin Development Corp is no longer at risk of delisting from NYSE American.