Are we in a bubble? We’re in a bubble. CYNK Technology, a “company” with a grand total of $39 in assets, has seen its share price rise dramatically, spiking to a valuation of more than $6 billion in a matter of days. The company’s 52 week low valued the firm at less than $18 million. Haven’t heard of CYNK? You are not alone. Despite having a valuation higher than Groupon’s, CYNK is an unknown. That’s because when it comes to being a real business, it isn’t. The ‘technology’ firm is in the midst of what appears to be a scheme to bounce its shares north, swindling those who buy into the company at inflated prices to the benefit of those orchestrating its rise.
The company’s stock, which the folks at ZeroHedge first alerted us to, has gone from $0.10 on June 17 to $14.71 as of Wednesday’s close. At its current stock price, the company’s market cap is $4.29 billion. This is a gain of more than 24,000%. For some perspective, Apple, one of the most successful companies and stocks of the last generation, is up about 18,000% since it went public in 1980. But there is, as you could imagine, a slight problem with CYNK: It’s not clear if there’s any value to it. The website associated with the company is introbiz.com. On introbiz.com, under the “About IntroBiz” section, it states that, “Thru our marketplace you may both buy and sell the ability to socially connect to individuals such as celebrities, business owners, and talented IT professionals.” This premise, as we understand it, is basically a Facebook-like social network where you would pay IntroBiz (or CYNK, or whoever), to connect you with someone else. Maybe someone cool or famous. Who knows? Here’s a screen shot of the home page. We’re not quite sure what to make of it.