SDEV shares surge nearly 1,000% then crash 92%

Shares of Stablecoin Development Corp (SDEV), a firm that holds and stakes the governance token SKY, rocketed by almost 1,000% before crashing 92% within just a few weeks.

The reason behind the rapid pump and dump remains unknown.

Protos had earlier covered SDEV's nearly tenfold price jump, but the stock has since fallen below $0.90, giving it a market capitalization of $45 million.

Meanwhile, Fugazi Research, a Substack outlet, issued a report that cast doubt on SDEV's foundations, citing pending warrants that would dilute retail holdings and inject many new, unpurchased shares into the market.

By October 14, just over a week later, the stock was changing hands below one dollar.

Thus, the short-seller analysis from Fugazi probably helped bring down SDEV's share price, particularly since other short sellers reported difficulty borrowing shares in the days before the crash.

Yet it remains puzzling why the company was ever valued at $500 million, even if only for a single day.

Thirty-day MA rises sharply

Protos had been monitoring SDEV's 30-day moving average (MA), as that price could be advantageous for those potentially exercising warrants soon.

Indeed, the 30-day MA has risen substantially compared to a month earlier, almost doubling from $0.95 to more than $1.75.

Tether has publicly listed a company that partially controls USDS

If Tether has exercised or plans to exercise its warrants—they became exercisable on October 16—it has not done so. No new SEC filings or documents concerning ownership changes have been recorded.