The Ginkgo Bioworks (NYSE: DNA) stock price plummeted 20% shortly after activist short-seller Scorpion Capital released a brief report denouncing the company as a “colossal scam”.
Followers of the short-selling, investigative-based Scorpion Capital would have witnessed a flash sell-off earlier, attacking Ginko Bioworks for its dubious practices, suggesting the entire company is a fraud and thereby issuing a large-scale warning for anyone holding monetary interests.
Scorpion Capital’s 175-page report spared the niceties, describing the business as a “shell game” and identifying Ginkgo as “The US version of ‘The China Hustle’”. Investors were immediately warned, sparking the knife-edge 20% drop just moments later.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Following the report, Ginkgo is currently under investigation by the law firm Block & Leviton to confirm or disprove the presence of any securities law violations; accused of depending on related party transaction revenues. It has been recommended that anyone who has lost money through Gingko should contact Block & Leviton for further information.
Ginkgo stock has seen remarkable gains since the biotech company went public in September this year – reaching highs of $13.29. The current Ginkgo stock price is $9.61 following the flash short. We can only wait and see what the results of the investigation expose, but investor feelings have been made abundantly clear.
Should You Invest in Ginkgo Bioworks Shares?
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