After 3,000% rally in a single day, Wall Street penny stock gives up two-thirds gains in 3 days

Eightco Holdings Inc., the Wall Street penny stock that captured global attention with a staggering 3,000% rally on Monday, has shed roughly two-thirds of that surge in just three trading sessions. From Monday’s close above $45, shares of the e-commerce company have slid to around $14 by Thursday, following consecutive declines of 11%, 40%, and 25%, marking a rapid reversal after its meteoric ascent.

The spike came after Eightco announced a private placement of 171.2 million shares, with participation from the World Foundation, which is co-founded by OpenAI CEO Sam Altman, to fund the acquisition of the digital currency Worldcoin. The company also signalled plans to add Ether as a secondary reserve currency on its balance sheet. The announcement lifted the company’s market capitalisation by over $180 million in a single session.

Freefall follows the surge

Volumes have plummeted alongside the stock price over the last three days. After 20 crore shares traded on Monday, daily volumes fell to 1.9 crore on Tuesday, 68 lakh on Wednesday, and just 38 lakh on Thursday. Despite the decline, shares were up roughly 5% in extended trading on Thursday.Market analysts note that Eightco’s rapid rise and fall are reminiscent of other short-term digital asset-driven rallies. Forward Industries, ETHZilla Corp, and Sonnet BioTherapeutics Holdings all experienced multi-hundred-per-cent surges earlier this year after unveiling similar digital asset strategies.

Also read | Wall Street penny stock rallies 3000% in 1 day on digital asset play and strategic moves

Monday’s rally was also bolstered by Eightco’s naming of Wall Street analyst Dan Ives as chairman, adding to investor enthusiasm. The private placement was scheduled to close on September 11, with plans to change the Nasdaq ticker symbol to “ORBS” following the offering.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)