After a positive start to the year, it finally began to feel like Tap Global PLC had turned a corner. For those familiar with the stock, it’s has a varied history, having initially been priced at 4.5p when the RTO into Quetzal Capital PLC took place in January 2023. The stock suffered due to the ongoing cryptocurrency bear market and a perceived lack of communications from the board, putting the stock into a spiralled decline finally hitting 0.7p per share at its bottom. With the appointment of Peter Wall as Chairman last year, things began to look up, the share peaked at around 3.5p per share and it looked like the long road to recovery was underway. After a successful fundraise and a few minor bumps in the road, everything was looking up, Tap Global completed an up-listing on AIM and the Bitcoin bullrun was in full swing.
It must have then come as a shock to many this morning to wake up to the news that Peter Wall is to step down as Chairman of the board and move on to pastures new. In fact, the shock was so great that, due to intense selling, the stock has now stumbled back to just 1.2p per share. With no buyers coming forward, it at least appears that there is no bottom in sight, and should the selling continue, we could round trip all the way back to the pre-Peter Wall lows of 0.7p, not where anyone wished to be, in the heat of a bull-run.
It’s an unfortunate set of circumstances. Do I think it’s all over? Not yet, but do I believe a severe shake-up is in order? Very much so. This show cannot simply continue in this manner, and frankly, investors deserve far better. Due to its nature, being a micro cap, many of those invested will be retail investors, who in good faith, have put their hard earned money into the stock, every investor knows the risks involved with the markets, but the majority of the risks with this particular stock lie with the board themselves.
The positives:
The product is good, it’s a neat little package, aimed directly at the everyday investor. Simple to use, with little understanding of markets required to make your first plunge into the crypto world.
The negatives:
Constant changes in the board, the company has had several CEO’s and a chairman, all walk in just a couple of years – i can only assume there are cultural problems within the company.
Failure to deliver – The company has failed to deliver any of its roadmap thus far – this year we have been promised – LATAM launch, Stock trading and lending, Savings accounts, Salary deposits and Cards as Service – as of today, nothing has been brought to market.
Stalled growth, the increase in users has simply dried up. Without a significant increase in users, it’s hard to see how the company will survive another bear market, should one arise.
This really has come to crunch time with Tap Global PLC, as the CEO said in the previous RNS – “The opportunity is now, and we are ready to seize it”.
Disclaimer: Nothing in this article is intended as investment advice, and readers should always do their own research. The cryptocurrency sector is highly volatile and can move rapidly in both directions. I may be invested in some of the stocks I mention in these articles, so please note that my comments may be biased. Everything is my opinion, so please fact-check.
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