If you have purchased RIOT stock, you might want to read this deep dive into their strange business practices and acquisitions on SeekingAlpha by Hindenburg Investment Research.
- their latest acquisition Tesspay.io seems scammy – the site doesn’t even have proper social network links, the website is rubbish and can be put together by a 10 year old better than that. No links of team members to their public profiles, no description. According to the SeekingAlpha article – it was created very recently through very scammy looking means. Tesspay going public before having any real service or customer base is also a strange move. Just what happened during the dot.com bubble.
- it is true that they went from a “life sciences company” to a blockchain company only a few months ago – a strange move / jump to a very different business
- acquisition of “Kairos Global Technology” for estimated $12 million, a company that doesn’t even have a website and not much information to be found online and the fact that it was formed 2 weeks before this huge acquisition doesn’t fill with confidence
For this reason, I no longer recommend RIOT as a safe long term investment. You might get lucky riding the wave of enthusiasm and the fact that it’s one of the few “blockchain in the name” companies that attract investors in the short term. But once more of them realise that their deals might not be legit and focused on filling their own pockets, this will fall hard.