Penny stock cryptos

Discussion in 'Feedback' started by Pekelo, Apr 5, 2022.

  1. Pekelo


    This thread is more like discussing a dilemma than a complaint...

    A long standing ET police has been banning penny stocks from discussions. The general definition being stocks under $5. With the raise of crypto pon.. I mean crypto investments, this rule has been broken all the time. Current thread:

    Out of the listed 10 cryptos, about 5 is a penny stock by definition. Now I wouldn't even mind if a crypto or stock is around $3-4, but for example the value of SHIB is 2/1000th of a penny, thus you can not even call it a penny stock, it is so valueless. Let's call it a Turkish penny stock.

    A few years ago we joked about DOGE, now it is a completely respected and acceptable investment.(although still a penny stock)

    So the problem is that these ponzi vehicles are presented now as a completely valid investment choices. Thus if we are allowed to do this with very low value cryptos, I say bring back the penny stocks too!!! I want to pump and dump my shares...
  2. Magna

    Magna Administrator

    Actually it is stocks less than $5 that also have an average daily volume under 1,000,000 shares. Not sure how we would translate that into cryptos, since they don't trade shares but "tokens", and even most of the ones that trade under $1 still trade millions of tokens each day.

    For instance take the infamous Dogecoin, currently trading around 16.5ยข but with a 24hr volume of around 5 billion tokens (spread across 127 exchanges). One possibility is to simply use market-cap as the standard, since that would weed out the truly minuscule penny-stock style cryptos.