An amazing upward leap for SMX Security Matters (NASDAQ:SMX) turned sour in Tuesday’s trading, as shares fell by 20% in morning trading. Recovery kicked in in the afternoon, but by the closing bell, SMX still lost close to 7%. So what prompted such a downward spiral? As it turns out, the answer was a planned probe into possible illegal trading.
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Not even a month ago, SMX was poised to ring the opening bell for NASDAQ trading. The event was to mark the company’s IPO, which happened about a week before its bell-ringing. Then, SMX made an unexpected announcement: it was going after those who were trading illegally in SMX shares, a move that it asserts hurt its share price. It also noted it was considering offering a “special dividend,” which it asserted would help expose any market manipulation. SMX may even go so far as to generate a dual listing to fight back against illegal trading.
A range of other stocks are engaging in such crackdowns, including Hoth Therapeutics (NASDAQ:HOTH), Genius Group (NYSE:GNS), and Agriforce Growing (NASDAQ:AGRI). SMX’s primary offering, an “unalterable, chemical-based barcode,” has already drawn some interest from tire manufacturers. Said barcode would supply “greater transparency in the natural rubber supply chain,” according to word from Continental.
The last five days in trading for SMX stock have shown themselves to be a wild ride by any definition. While shares were comparatively quiet only five days ago, hovering down around $0.76 per share, that didn’t take long to change. Shares blasted up starting yesterday, hitting a spike that was over double the value seen on April 6. It gave back some ground in the meantime, then recovered before hitting a new plateau of just under $1.50 per share.
