Off the top of your head, name the #1 business arena that requires trust.
Food, supplements, medications, and things you put in you or your kids’ body is probably #1.
But near the top of the list should be the world of finance and banking.
If you put money into a bank account, you trust you can get your money out of that bank if and when you need it.
Banks don’t last if people don’t trust them.
The same goes with many financial services companies that deal with large transactions.
Trust is the #1 requirement in this arena.
If people don’t trust you, you’re toast.
Wirecard (WCAGY) is a publicly traded German tech company who provides software to companies in the finance arena… In recent days, this company lost the trust of their clients and it destroyed the company.
As we’ve all seen in the last several months with the coronavirus… A lot can change in a few days.
On June 22nd 2020 – just 4 days ago – we told you about Wirecard’s recent issues about “misplacing” more than $2 billion. But even more happened in the last few days that I want to update you on.
For full context into this article use the link above to see everything that’s gone on with Wirecard in the last few days and months.
Here’s an excerpt from that article that’s important to what we’re going to talk about today…
In a 4 day stretch from the close of the market on June 17th to as of this writing on Sunday June 21st before the market opens Wirecard shares plummeted from $58.50 per share to $13.75 per share.
This is a loss of 76.5% in 4 trading days that you can see in the chart below.
But this doesn’t even show the full crash of Wirecard shares.
On September 18th, 2019, the company hit a high of $87.25 per share. This means the total loss from that date to today is 84.2%in 8 months.
This is a massive destruction of value that you can see below.
And this isn’t even the first news about potential fraud at the company either…
In October 2019 The Financial Times reported that profits in Wirecard’s Dubai and Dublin units appeared fraudulent.
The finding in October led to the more recent investigations mentioned above.
This looks like fraud on a massive scale.
A few days before this on June 19th Wirecard’s CEO Markus Braun resigned.