29 Mar OTC flags Blockchain companies for anonymous promotions
OTC Markets Group warned investors about 56 questionable stock promotions in a new program designed to flag stock promoters for improper promotions.
“Anonymous, paid stock promotion should have no place in the public markets,” said Cromwell Coulson, CEO of OTC Markets Group, which lists more than 10,400 companies on its exchange.
Megaphone icon identifies promoters
The OTC’s new program tries to make stock promotions more transparent instead of anonymous. The organization now places a megaphone icon beside the OTC stocks deemed to be promoting improperly with a pop-up message saying: “The security is currently undergoing promotional activity.”
OTC also places a shell icon beside listed companies considered to be “shell” companies as defined by the SEC.
“We continue to work with regulators to advocate for the modernization of promotion regulations, including requiring additional disclosure around paid stock promotion and identifying the people associated with these campaigns,” Coulson said.
Blockchain “promoters” identified
Among the 56 companies identified as promoters by the OTC were two Canadian blockchain companies, including Global Blockchain Technologies Corp and Block One Capital Inc.
So, if you’re scouting OTC listed blockchain and cryptocurrency companies, make sure to keep an eye out for the megaphone and shell icons as a flag to look further into the company and its recent promotional activity.