Renren stock jumps after the item says the item’s raising money through ICO

Joseph Chen, CEO of Renren

Tomohiro Ohsumi | Bloomberg | Getty Images

Joseph Chen, CEO of Renren

The share cost of Chinese social network Renren has almost doubled after the company said the item was raising money through a digital currency sale.

Renren is actually looking to raise funds through an initial coin offering (ICO), according to a white paper released Tuesday. the item laid out plans for a so-called “open social network platform based on blockchain” called RRCoin.

The company, headquartered in China along with listed on the fresh York Stock Exchange, saw its stock climb 47.39 percent to $18.32 a share by the close of the U.S. trading session Wednesday.

CNBC contacted the company for comment however the item was not immediately available.

Start-ups bagged billions of dollars through ICOs last year, however regulators are looking to crack down on the method due to concerns over fraud. numerous celebrities, by socialite Paris Hilton to rapper Ghostface Killah, have given backing to the practice.

China’s regulators moved to ban ICO in 2017, saying the practice involved financial scams along with different illegal activities. The U.S. Securities along with Exchange Commission has raised its own concerns over the means of funding, along with in December froze the assets of a firm in which raised funds through an ICO.

Several companies have seen their stock cost soar after claiming an involvement with cryptocurrency along with blockchain technology.

U.S. retailer Overstock.com has seen its stock cost skyrocket since the item said the item was entering the blockchain along with cryptocurrency space, while tiny cap fruit juice company Future Fintech — formerly known as SkyPeople Fruit Juice — surged as much as 0 percent on the mere mention of financial technology (fintech) in its name.

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