With no press releases or substantive news behind Dragon Victory (NASDAQ:LYL), it might be hard to imagine why the company is rallying today. LYL stock is up an impressive 25%, and trading volume is very high. With an average volume of 1.1 million shares, why is the stock trading at a volume of 40 million today? Well, it seems some new speculation on the company is driving investor interest.
Dragon Victory is a Chinese company that offers a reward-based crowdfunding platform. Start up ventures can look to the site for crowd-based financial support that is hosted on the Dragon Victory network. The most appealing part of the company to investors today is in its other field of expertise: auto supply. The company provides an additional service in which it connects auto repair shops with part suppliers. While this might not sound super exciting, investors are taking interest because the service uses blockchain and smart contracts to conduct transactions between parties. This explains the logic behind the big LYL speculation today.
Dragon Victory’s connection to blockchain and smart contracts is leading a wave of internet speculation about the company entering the crypto scene. Thanks to this logic, Twitter has been alight. Many users are posting about the speculation, and the hype is driving a massive breakout for LYL stock. Although it is unclear if Dragon Victory will act on this speculation, we have seen other companies do so. In recent weeks, customer service firm Support.com (NASDAQ:SPRT) made waves when announcing its merger with a crypto mining company.
The Bottom Line on LYL Stock Today
I can’t stress enough that solid news is not driving the price of LYL stock this morning. Only speculation by a crowd of aggressive day traders is at play. A move to crypto seems like a logical step for a company with an existing blockchain network. It could certainly happen. But, nothing is set in stone, and until we see a press release from Dragon Victory stating its expansion into crypto, it remains a rumor.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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