Xunlei Ltd., a Shenzhen-based cloud computing provider, is becoming the top stock in the Nasdaq Composite Index due to a little Bitcoin magic.
Recently, on October 12, Xunlei Ltd. announced their “Wanke coin mining” cryptocurrency project. After that the company’s ADR surged nearly 400%, which made it the hottest Nasdaq stock at the time.
Xunlei’s cryptocurrency, Wanke, is a lot like Bitcoin, and the jump of the company’s shares happened as the king of cryptocurrency continues to break all the records.
However, Anthony Tong, Beacon Securities Chairman from Toronto, believes that the 75% gain in the shares over the past four trading days indicates that rally may be only temporary, “The final leg is the most risky.” He also added that investors should take profits and exercise caution.
At the same time Xunlei representatives aren’t concerned about the possibility of a pull-back. Dong Xue, Xunlei vice president of marketing, commented, “We did get attention from investors confident on Xunlei’s future. But we hope Xunlei’s investors flock to us because of the future of ‘shared computing’ and their trust in our new management team, rather than for speculation”.