Farmmi's shares surged over 300% amid hype over the JINQIAN meme coin, though the stock later settled with a 26.45% increase.
Farmmi, a Chinese agricultural supplier, experienced a dramatic surge in its stock price, soaring over 300% to reach $0.50 on September 2, before settling at $0.1501, representing a 26.45% increase. This spike was closely linked to the excitement surrounding the JINQIAN meme coin and the associated FAMI token on the Robinhood Chain, as highlighted by users on X.
This is wild
Farmmi, Inc. (FAMI: NASDAQ) is mooning from onchain trading through the "JINQIAN" / Money Mushroom meme pair
The trading volume surged dramatically to 867.2 million shares, a stark contrast to the previous day’s volume of just 5.76 million. Farmmi’s product line includes dried mushrooms, and the JINQIAN token is named after a variety of shiitake mushrooms known as "money mushrooms."
Within an hour of its launch, the JINQIAN meme coin achieved a market capitalization of $70 million. Notably, one trader reportedly turned an 8 ETH investment (approximately $19,000) into 82.54 ETH (about $198,000), realizing a profit of approximately $179,000.
Frenzy Triggered by Crypto Trader's Post
The excitement was ignited by a post from crypto trader Rune, who claimed to have invested $1.8 million for a 37.4% stake in a Nasdaq-listed company. He mentioned that the company was trading at around $0.12 per share and had a high short interest.
i’ve been quiet for a few days.
i acquired a controlling stake in a NASDAQ-listed company. $4.8M market cap, trading at $0.12/share with a crazy 92.3% short interest.
Rune later revealed plans to tokenize the acquired shares and launch a related meme coin, suggesting that demand for the token could lead to a short squeeze. However, he later clarified that he did not actually purchase a stake in Farmmi, and the details shared were exaggerated or fabricated.
Token Confusion and Risks
The FAMI token that emerged on the Robinhood Chain, while reflecting Farmmi’s stock ticker, is not an official stock token. The Robinhood platform clarified that mere similarity in names does not indicate any official affiliation. The FAMI token's issuance volume matched the number of Farmmi shares, but it lacked a mechanism for linking the token to actual shares, meaning it does not grant rights to acquire Farmmi stock.
StarPlatinum, a user in the crypto community, raised concerns about the lack of liquidity locks in the trading pair, highlighting the associated risks for investors.
Farmmi's Nasdaq Warning
Before this trading surge, Farmmi had been under scrutiny after its shares traded below $1 for 30 consecutive sessions, prompting a warning from Nasdaq. The company has until February 8, 2027, to maintain a closing price of at least $1 for ten consecutive trading days to avoid delisting. Financially, Farmmi has been struggling, with revenues dropping from $64.1 million to $28 million in fiscal year 2025 and losses increasing from $4.6 million to $53.4 million. The company is also diversifying into warehousing and logistics services in the U.S.
