DigitalX’s share price swing triggers ASX questions

Maria Nikolova

The Exchange has queried whether DCC is aware of any information that could explain the recent trading in its securities.

Recent changes in the share price of blockchain-based solutions provider and ICO adviser DigitalX Ltd (ASX:DCC) have once again triggered questions by ASX. ASX has submitted a price query concerning DCC, noting the the change in the price of DCC’s securities from a low of $0.045 yesterday to a high of $0.074 today. The Exchange also noted the significant increase in the volume of DCC’s securities traded from April 1, 2019 to today.

ASX wanted to known whether DCC is aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities. And if “no”, is there any other explanation that DCC may have for the recent trading in its securities?

In its response, DigitalX says it is not aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in the Company’s securities.

The Company’s share price has a long history of tracking the price of Bitcoin, and the Company notes that the price of Bitcoin has recently risen by up to 25%.

DigitalX also noted that there has been limited online media coverage on the Company’s ongoing Federal Court matter. This matter was subject to a mediation hearing on March 27, 2019. Presently, the company is not in a position to make any further update on this matter.

Let’s recall what this legal matter is about. On September 28, 2018, DigitalX announced that it had been served with an Originating Application and Statement of Claim in the Federal Court of Australia filed by a group of parties relating to an investment made by those parties in an initial coin offering (ICO) to which the Company was an advisor.

In a recent report, DigitalX said:

“Since the initial filing of the Statement of Claim the Company and its legal advisors have continued to review and examine the claims made, the Company continues to deny any claim of wrongdoing. The Company and the claimants have agreed to a mediation process set for the 27th of March, 2019 after the date of this report. The Company still intends to vigorously defend this matter and protect the reputation of the Company”.

The claim is for a combined amount of approximately US$1,833,077 plus damages.

Read this next

Executive Moves

Lirunex Limited recruits Waleed Salah as head of MENA sales

Maldives-based brokerage firm Lirunex Limited has secured the services of Waleed Salah, who joined the company in the role of its head of sales for the MENA region.

Executive Moves

Trading 212 parts ways with co-founder Borislav Nedialkov

Trading 212 has a void to fill at its FCA-regulated business in London, following the departure of two key players, Raj Somal and Borislav Nedialkov.

Digital Assets

Binance acquires troubled crypto exchange GOPAX

Binance, the world’s largest digital asset trading platform, has reportedly acquired a majority stake in the troubled South Korea-based cryptocurrency exchange GOPAX.

Digital Assets

Kraken exits Middle East, closes UAE office

Digital currency exchange Kraken will close down its operations in Abu Dhabi, UAE and lay off the majority of its team focused on the Middle East and North Africa.

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”

Digital Assets

Zodia Custody and SBI Digital Asset Holdings launch JV for crypto asset custodian in Japan

“Zodia Custody is both proud and excited to be working with SBI DAH to help set up SBI Zodia Custody; the first tier 1 crypto asset custodian for institutions in Japan.”

Digital Assets

Paxos opens R&D center in Israel to focus on transaction signing and crypto custody security

“Paxos is looking to expand its team in Israel in 2023 and beyond, giving engineers the opportunity to work on cutting-edge financial products and shape the future of the global economy.”

<