Shineco (SISI) stock surged on Wednesday after the Chinese processing and distribution company announced a “Cellular Asset On-Chaining and Marketing Ecosystem Cooperation Agreement.” It signed this agreement, which covers blockchain-based tokenization of biological cellular assets, with Plus Me Limited.
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Under the terms of this agreement, Shineco and Plus Me Limited will release a full lifecycle digital custody system of mesenchymal stem cells (MSCs) on the Ethereum (ETH) network. The company said this will include smart assets to secure asset ownership rights, non-fungible digital identifiers, and verifiable uniqueness.
As part of this plan, Shineco has revealed a controlling 51% stake in Xi’an Dong’ao Health Management Co., Ltd. This company is a specialist in cryogenic cell storage and clinical applications. It also has the off-chain infrastructure needed for token redemption.
Shineco Stock Movement Today
Shineco stock was up 45.25% in pre-market trading on Wednesday, following a 9.01% fall yesterday. The shares have also dropped 97.81% year-to-date and 99.29% over the past 12 months. Today’s news brought with it heavy trading of SISI stock, with some 13 million shares traded. This was well above the company’s three-month daily average trading volume of about 213,000 shares.
While today’s movement is massive, investors will want to be careful about taking a stake in Shineco. Its long-term performance includes staggering drops, and there’s no guarantee today’s momentum will lead to a turnaround for the shares. This could leave unfortunate traders holding the bag once the recent hype around the stock starts to dwindle.
