More cautionary signs of mania behaviour in financial markets, see “Investors lose billions on meme stocks as ‘pump and dump’ scams multiply“:
Investors lost billions of dollars in July betting on a handful of small US-listed Chinese stocks that plunged in value shortly after being heavily promoted on social media.
Seven Nasdaq-listed microcap stocks — Concorde International, Ostin Technology, Top KingWin, Skyline Builders, Everbright Digital, Park Ha Biological Technology and Pheton Holdings — all dropped more than 80 percent over a few trading sessions in recent weeks.
The declines wiped a cumulative $3.7bn off their market value, according to price data analysed by predictive analytics firm InvestorLink. All seven stocks had surged before their sudden sell-offs, having been plugged to investors on WhatsApp groups and social media sites.
Analysts and investors said the moves bore many of the hallmarks of pump and dump scams.
