Longfin Corp (NASDAQ: LFIN) is having an overwhelmingly strong day in the market today, and for good reason. The company has announced a key acquisition, giving it the opportunity to make a splash in the booming blockchain space. Today, we’ll talk about the acquisition, what we’re seeing from the stock as a result, and what we’ll be watching for ahead.
LFIN Gains On Acquisition
As mentioned above, Longfin, a global FinTech company, announced a key acquisition this morning. In a press release, the company announced the acquisition of Ziddu.com. Ziddu.com is a blockchain-empowered solutions provider that offers Microfinance Lending against Collateralized Warehouse Receipts in the form of Ziddu Coins.
Ziddu Coin is a proprietary smart contract that enables SME’s, processors, manufacturers, importers and exporters using cryptocurrencies across continents. Essentially, importers and exporters convert Ziddu coins into Ethereum or Bitcoin and use the proceeds for their working capital needs. When the contract ends, importers and exporters will realize their proceeds and pay back their funds through cryptocurrencies only. The company said that depending on the risk, the interest rate will vary from 12% to 48%. In a statement, Venkat Meenavalli, Chairman of LFIN, had the following to offer:
“The advent of Blockchain technology has caught the imagination of the global financial services industry; blockchain is emerging as a technological revolution that is set to disrupt the financial services infrastructure. Cryptocurrencies such as Bitcoin and Ethereum will act as a global financial currency to avail credit against hard currencies of many emerging markets.”
How The Stock Reacted To The News
As investors, one of the first things that we learn is that the news moves the market. That’s the case here. After all, with this announcement, the company brings an entire product line with massive potential in a booming industry. As a result, investors are excited, pushing the stock for the top. At the moment (11:!8), LFIN is trading at $16.00 per share after a gain of $10.61 per share or 196.87% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on LFIN. In particular, we’re interested in following the story surrounding the acquisition and watching as the company turns the new offering into a profit. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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