With no press releases or substantive information behind Dragon Victory (NASDAQ:LYL), it may be laborious to think about why the corporate is rallying right this moment. LYL inventory is up a powerful 25%, and buying and selling quantity could be very excessive. With a mean quantity of 1.1 million shares, why is the inventory buying and selling at a quantity of 40 million right this moment? Well, it appears some new hypothesis on the corporate is driving investor curiosity.
Dragon Victory is a Chinese firm that gives a reward-based crowdfunding platform. Start up ventures can look to the location for crowd-based monetary help that’s hosted on the Dragon Victory community. The most interesting a part of the corporate to buyers right this moment is in its different discipline of experience: auto provide. The firm gives an extra service wherein it connects auto restore outlets with half suppliers. While this won’t sound tremendous thrilling, buyers are taking curiosity as a result of the service makes use of blockchain and sensible contracts to conduct transactions between events. This explains the logic behind the large LYL hypothesis right this moment.
Dragon Victory’s connection to blockchain and sensible contracts is main a wave of internet speculation about the company entering the crypto scene. Thanks to this logic, Twitter has been alight. Many customers are posting in regards to the hypothesis, and the hype is driving an enormous breakout for LYL inventory. Although it’s unclear if Dragon Victory will act on this hypothesis, we have now seen different firms accomplish that. In current weeks, customer support agency Support.com (NASDAQ:SPRT) made waves when announcing its merger with a crypto mining company.
The Bottom Line on LYL Stock Today
I can’t stress sufficient that stable information is just not driving the value of LYL inventory this morning. Only hypothesis by a crowd of aggressive day merchants is at play. A transfer to crypto looks as if a logical step for a corporation with an current blockchain community. It might actually occur. But, nothing is ready in stone, and till we see a press launch from Dragon Victory stating its enlargement into crypto, it stays a rumor.
On the date of publication, Brenden Rearick didn’t have (both straight or not directly) any positions within the securities talked about on this article.
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