On Tuesday, shares of Xunlei Limited (NASDAQ:XNET) plunged.
Interestingly, there was no company-specific news driving the slump. Many speculate that because the Chinese-based internet platform’s stock has exploded higher since the launch of its cryptocurrency project in October, Tuesday’s decline may simply be a correction after the stock gained 475% in under two months. As of 12:10 pm. EST, Xunlei shares were down roughly 14%.
What’s Been Happening?
Bloomberg has referred to Xunlei as the hottest stock on the NASDAQ. Following the launch of its cryptocurrency project on October 12th, XNET stock went from less than $5 per share to almost $25 per share. As of right now, the stock sits around $18 per share.
The company’s cryptocurrency project launch coexists with Bitcoin’s outstanding run-up to $10,000. Currently, Xunlei is looking at the blockchain technology that underlies cryptocurrency.
What Does the Future Entail?
According to a Xunlei executive, the company is hoping that “investors flock to us because of the future of ‘shared computing’ and their trust in our new management team, rather than for speculation.”
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