Tales From the Cryptomania – Part I
Tales From the Cryptomania – Part I by Brady Willett – Financial Sense
TDC Note – We are beginning to read more and more about the illusion of bitcoin and cryptocurrencies as a whole being revealed. The sad part is millions upon millions of people have now put themselves, and their families, at risk with various governments around the world.
Hoping to strike it rich, “junior miners” like to dig holes in the ground after they secure funding. When times are good money is easily attracted and many holes are dug, and when times are bad some juniors are forced to close up shop. Then we have today:
“Guyana Goldstrike Inc. is pleased to announce that the Company has been meeting and consulting with experts in the blockchain and cyptocurrency sector to ascertain the feasibility of financing the Marudi Gold Project through the issuance of an Initial Coin Offering (“ICO”) on the Ethereum blockchain platform.” (Guyana Goldstrike)
Why, exactly, does Guyanna require “cryptocurrency” experts to help fund its drilling activities (and yes, in a mad rush to press Guyana misspelled ‘cryptocurrency”)? Because, akin to attaching a dot com at the end of your name in the late 1990s, aligning yourself with anything crypto related today can be pure gold.
The latest, and perhaps greatest example of this phenomenon is seen in Croe Inc. which changed its name to Crypto Company in October and has watched its stock price soar by more than 2,700% since. In Crypto Company’s last 10Q for September 30, 2017, the company posted $3.5 million in net equity, little or no sales (beyond some crypto sales), massive losses, and massive shareholder dilution. Contrast this against Crypto Company’s market cap, which before yesterday was more than $11 billion. Put another way, with $6,000 (yes, six thousand dollars) in actual business sales through the first 9-months of 2017, CRCW was being valued at more than $11 billion.