Sell Alert: Mode is down and now out
27th January 2023 |
Mode Global Holdings (LSE:MODE) is a cryptocurrency exchange and wallet provider. We brought the stock into the Frontier Tech Investor Buy List in what hindsight now tells us was the worst imaginable time possible.
The “crypto winter” of 2022 destroyed the stock price, and the depths of the “winter” has now proven to be too much for the ambitious company. Whilst we’ve been through several crypto winters before, and seen companies get hammered in them and then rise from the brink of extinction, this is not to be the fate of Mode.
In a news release yesterday, Mode announced that it is winding down operations, the app and the company. In short, the company is dead.
The release says, “The Board will continue to look for ways to extract value from the Group in the future and to rebuild operations within the cryptocurrency industry.”
Will they? Can they? Possibly. But it’s too little too late. When the company failed to raise funds recently, it suggested things were wobbly, but not completely dead. Yet the news yesterday confirms it’s over for Mode, and for our position in the stock.
It’s one of the worst performers we’ve ever had. It’s not a nice feeling to have ridden this to nothing. But that is the risk that we bear when we look at companies like these that are focused solely on an industry that has volatility like nothing else on earth.
Nonetheless, we must SELL Mode Global Holdings, exit the position completely and take a heavy loss on this one.
Entry price: 43.98p
Exit price: 0.6140p
Profit/loss: -98.6%
Regards,
Sam Volkering
Co-editor, Frontier Tech Investor
