Altcoin Season on Wall Street Booms: Wirecard AG Stock Up 700% In 5 Days
Despite the German-based online payment processor Wirecard filing for insolvency last week, its stock price has surged by 700% in merely a few days. WDI plunged to a bit over 1 EUR and jumped to above 9 EUR earlier today following positive news from the UK’s regulator.
Wirecard AG’s Stock Price Roller-Coster
The company’s drama began a few weeks ago as its decade-long auditor Ernst & Young was unable to locate 1.9 billion EUR ($2.1bn) in company funds. Shortly after, long-time CEO Markus Braun announced his departure from the firm, and the current Chief Compliance Officer James Freis replaced him as the interim CEO.
The situation worsened when Wirecard filed for insolvency, and Braun was arrested in Germany days later. Additionally, the UK Financial Conduct Authority suspended the company’s subsidiary Wirecard Card Solutions, which also issues cryptocurrency debit cards for two firms – Crypto.com and TenX.
As these adverse developments occurred in the span of a few weeks, the publicly-traded company stocks felt the negative effects immediately. On June 17th, WDI traded at about 104 EUR. Two days later, the price had plunged by 87% and hovered around 13 EUR.
On June 26th, WDI bottomed at slightly over 1 EUR per share. However, the price quickly reversed its downtrend and jumped in a day to 4 EUR in what was initially regarded as a “dead cat bounce.” Following the news from yesterday that the UK regulator has lifted the suspension on Wirecard UK and the firm has resumed regular activities, WDI registered a significant surge.
Wirecard’s shares gained over 700% from the June 26th bottom as they reached a daily high of more than 9 EUR. The price has retraced since then to about 5.5 EUR.
The Stock Market Or Altcoins?
The cryptocurrency market and mainly most alternative coins have been frequently criticized for vigorously volatile price movements in relatively short periods. However, the stock market has performed somewhat similarly lately as WDI is not the only share that has shown triple or even quadruple-digit percentage developments.
The large corporation operating a few rental car brands based in the US – Hertz Global Holdings – filed for bankruptcy in late May following the COVID-19 crisis.
As a result, the company stocks bottomed at approximately $0.5. A few weeks later, however, they surged back to over $6. This represented gains of more than 1,100%. Now, HTZ has retraced back down to $1,5.
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