Elon Musk told his followers to ‘use Signal’ leading to 1100% surge in
When Tesla CEO Elon Musk urged his Twitter followers to “use Signal,” on Thursday, he was referring to an encrypted messaging app. Some people seem to have misinterpreted this message..
OTC traded obscure company Signal Advance surged 527% on Thursday and another 91% on Friday, rising from 60 cents to $ 7.19.
Signal I was talking about Elon Musk, operated by a non-profit organization and serves as an alternative to text-based applications such as Facebook Messenger, WhatsApp, and Apple’s messaging service. "Right" Signal posted a message to Twitter on Friday to clarify that it has nothing to do with Signal Advance.
«It is clear that people want to invest in Signal’s record growth, but this is not us», – wrote messenger Signal. «We are an independent 501c3 company and our only investment is in your privacy».
Such cases are not uncommon for Wall Street..
In April 2019, the day Zoom Video Communications made its long-awaited market debut under the ticker ZM, Chinese company Zoom Technologies jumped more than 80% in two hours of trading. The stock lost most of its profits that day, closing at + 10%.
Six years ago, as investors waited for Twitter’s IPO, Tweeter Home Entertainment Group’s shares surged over 1000%.
Signal Advance was founded in Texas under the name Biodyne in 1992 and has provided services to medical and legal professionals. The company shifted its focus to healthcare technology and changed its name to Signal Advance. Rarely traded stocks entered the market in 2014.
Signal Advance is so small that it does not report financial results to the SEC (US Securities and Exchange Commission). As of March 2019, the company had no full-time employees other than the CEO Chris Hymel (Chris Hymel) who did not immediately respond to a request for comment.
Due to the large influx of investors, the company’s market capitalization is now $ 660 million, up from $ 55 million a few days ago. Before the confusion of Thursday, stocks traded below $ 1 since 2015.
According to a New Yorker article published in October, the Signal messaging app maintained by the Signal Technology Foundation, «fully funded by donations».
The company also had other problems after Musk’s tweet to over 41 million subscribers. Signal said Thursday that it was having technical problems with authorization because «so many new people trying to join».
Both technical glitch and rampant trading "not those" actions underline the growing influence of Elon Musk. On Thursday, he became the richest man in the world thanks to Tesla’s nearly 800% increase in market capitalization over the past year. Tesla became the fifth largest public company in the US on Friday, overtaking Facebook.