Stablecoin Development Corp (SDEV), a company that’s designed to essentially hold and stake governance token SKY, has seen its stock price rocket nearly 1,000% — and subsequently plummet 92% — in a matter of weeks.
Why it pumped and dumped so quickly isn’t clear.
Protos previously reported on SDEV and it’s subsequent almost tenfold increase in price, but since then the price has collapsed to under $0.90, with a current market cap of $45 million.
At the same time, a Substack going by Fugazi Research released an article questioning the foundations of Stablecoin Development Corp — including upcoming warrants that would dilute retail shareholders and flood the market with new, unpurchased shares.
Read more: Stablecoin Development Corp price pumps for no reason
Just over a week later on October 14, the stock was trading for under a dollar.
So, it’s likely that the short-seller report published by Fugazi contributed to the downfall of SDEV’s stock price — especially considering that other shortsellers were complaining about an inability to acquire shares to borrow in the days leading up to the collapse.
However, what still doesn’t make sense is why anyone valued the company at $500 million, even if only for a day.
Thirty-day MA way up
Protos was previously keeping an on eye on the 30-day moving average (MA) for SDEV, due to the fact that this price would benefit individuals and entities that may be exercising warrants shortly.
It’s true that the 30-day MA is significantly higher now than it was a month ago — nearly doubling, from an MA of $0.95 to over $1.75.
But if Tether has exercised or intends to exercise its warrants, which became eligible to be exercised on October 16, it hasn’t done so. Indeed, no new filings have been recorded by the SEC nor any documents discussing new ownership percentages.
Protos will keep following SDEV and whether Tether exercise its warrants over the next few weeks.
Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on X, Bluesky, and Google News, or subscribe to our YouTube channel.
The post Stablecoin Development Corp goes boom then bust appeared first on Protos.