The US Securities & Exchange Commission (SEC) has halted trading in UBI Block chain Internet, Ltd (OTC: UBIA), following an unexplained steep rally in the stock price. The little known Hong Kong based company was established in 2010. It was formerly known as formerly known as JA Energy. The company operates as a subsidiary of Almost Never Films Inc.
The company’s stock, which was trading at $9 on December 11, skyrocketed to $87 on December 18, representing a gain of 860%. The company has not received any order or signed any breakthrough partnership with anyone to justify the price rise. Considering the move as purely speculative, SEC banned trading in the stock until January 22, 2018.
Earlier, the company had claimed that it is engaged in designing a suite of modular, self-contained, automated, and climate controlled units for distributed production of energy. However, no significant operations are seen.
To capitalize on the crypto currency craze, several companies, which do not have any credible business, have changed their name to sound as if it they are involved in a big crypto currency project. Traders, who are not bothered about fundamentals, pump and dump the stock. Regulators do take immediate action so that unsuspecting investors do not get trapped.