Summary
- Shares of digital-asset manager AVAX One plunged 32% amid uncertainty over the potential sale of shares by existing shareholders.
- AVAX One said it filed with the SEC to register up to 74 million shares held by insiders as shares eligible for sale.
- The market attributed the selloff to growing dilution concerns for existing shareholders as the possibility of a large-scale share sale emerged.
Shares of AVAX One, a digital-asset manager advised by SkyBridge Capital founder Anthony Scaramucci, plunged 32% amid uncertainty over the potential sale of shares by existing shareholders.
According to CoinDesk, a cryptocurrency-focused media outlet, on the 27th (local time), AVAX One filed a registration statement with the US Securities and Exchange Commission (SEC) to register up to 74 million shares held by insiders as shares eligible for sale. The filing enables resales in the public market, but it did not specify the timing or size of any sales.
The market interpreted the sharp decline as driven by heightened concerns over dilution for existing shareholders as the possibility of a large-scale share sale opened up.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
