Longfin Corp (LFIN) Stock Skyrockets on Blockchain Deal
Longfin Corp (NASDAQ:LFIN) announced a major acquisition that sent the company's stock price gangbusters.
The company announced that it would be buying Ziddu.com, which is a blockchain-empowered solutions provider that offers a variety of sources, including Microfinance Lending against Collateralized Warehouse Receipts in the shape of Ziddu coins.
Ziddu Coin will be a solid addition for Longfin as it is a blockhain-based proprietary smart contract which allows SME's, processors, manufacturers, importers and exporters to use cryptocurrencies across currencies.
The currency works thanks to importers and exporters converting Ziddu coins into another cryptocurrency such as Ethereum or Bitcoin. The proceeds are then used for the company's working capital needs.
Once the contract ends, importers and exporters will attain their proceeds and pay back their funds to the company using cryptocurrencies only. The company added that depending on the risk, the interest rate they will garner will vary from 12% to 48%.
Venkat Meenavalli, Chairman of LFIN, said: "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," Meenavalli added in a statement.
LFIN stock soared 209% on Friday by mid-afternoon alone on the deal.