Ieg Holdings Corp (OTCMKTS:IEGH) went totally bonkers last week, with shares rocketing as much as 296%. But IEGH has given up most of those gains to start this week.
I’d give you two guesses as to what the catalyst was, but we both know that would be one too many. Yes, indeed, IEGH is the next contestant on: “who wants to be a cryptocurrency play!” In fact, the company announced that its wholly-owned subsidiary, Investment Evolution Crypto, LLC, is negotiating to purchase a gold project with gold metal in the ground and prospecting licenses as a step toward creating a gold-backed cryptocurrency.
According to the company’s release, “IEG Holdings plans to utilize a gold resource to investigate creating, through Crypto, and a joint venture with Investment Evolution Corporation, also a wholly owned subsidiary of IEG Holdings, its own gold metal-backed crypto/blockchain currency, and potentially offer loans and accept loan repayments in its own crypto/blockchain currency. Crypto has not begun material operations and is in the development planning stages to explore these crypto/blockchain opportunities in this time of changing technology. Prior to launching these plans, Crypto will investigate the legalities and economic risks and benefits of its plans. Any cryptocurrency offering will be registered with the Securities and Exchange Commission.”
Ieg Holdings Corp (OTCMKTS:IEGH) trumpets itself as a company that provides online $5,000 and $10,000 unsecured consumer loans in 20 US states via its website www.mramazingloans.com.
IEGH is also exploring opportunities in the crypto/blockchain sector including the potential creation of its own cryptocurrency and lending in its own and/or other cryptocurrencies.
The company offers loans for debt consolidation, medical expenses, home improvements, auto repairs, purchases, and discretionary spending. The company provides its unsecured consumer loans to residents under the Mr. Amazing Loans brand name through its mramazingloans.com Website in 19 states, including Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Texas, Utah, and Virginia.
IEG Holdings Corporation was founded in 1999 and is headquartered in Las Vegas, Nevada.
According to company materials, “IEG Holdings Corporation provides online $5,000 and $10,000 unsecured consumer loans under the brand name, “Mr. Amazing Loans”, via its website and online application portal at www.mramazingloans.com. IEG Holdings started its business and opened its first office in Las Vegas, Nevada in 2010 and currently offers $5,000 and $10,000 unsecured consumer loans that mature in five years. IEG Holdings is a direct lender with state licenses and/or certificates of authority in 20 states — Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Texas, Utah, Virginia and Wisconsin. IEG Holdings provides loans to residents of these states through our online application portal, with all loans originated, processed and serviced out of our centralized Las Vegas head office.”
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As we have been discussing ad nauseam, crypto pivots are the strategy du jour. And who can knock it? It works.
With IEGH as the latest proof in the pudding. The stock has a tiny trading float, which naturally helps to foment the result. And the announcement is a bit more interesting than your standard, “at some point we are going to do an ICO” announcement. This is an idea for taking a cryptocurrency – something that is, by definition, inherently “backed” by the blockchain – and backing it with gold.
The nifty bit here is that, according to the company, this logical bait and switch maneuver could be important for regulators like the SEC, who understand the concept of “gold backing” much more than “blockchain backing”.
Paul Mathieson, IEG Holdings’ Chairman and Chief Executive Officer, said, “Unlike Bitcoin, Ripple, Ethereum and Litecoin etc., IEGH’s cryptocurrency is planned to be backed by gold metal and registered with the SEC as a security. We believe potentially combining the exciting new blockchain technology with the hard asset of gold metal, expected SEC registration, a leading sophisticated online consumer finance system and individual US state lending licenses is a very exciting proposition. In addition, we believe the future leaders of the crypto/blockchain sector will be companies that are materially compliant with all the existing and future related US government legislation. We aim for IEGH to leverage off its existing fintech business credentials, specifically its extensive experience in online consumer loans, to potentially be a key player in the crypto/blockchain sector.”
At this time, carrying a capital value in the market of $10.5M, IEGH has a bankroll ($1.9M) of cash on the books, which stands against virtually no total current liabilities. IEGH is pulling in trailing 12-month revenues of $1.6M. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -26.9%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $IEGH stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $IEGH, either long or short, and we have not been compensated for this article.