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Stripe Plans to Expand Stablecoin Card Business to Over 100 Countries by Year-End
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Fugazi Research Declares Stablecoin Development Corporation Stock Uninvestable
Fugazi Research has issued a critical report on Stablecoin Development Corporation, formerly known as NovaBay Pharmaceuticals, labeling its stock (ticker: SDEV) as 'uninvestable at any price above zero.' The report, released on October 5, 2026, highlights that the company, which includes 'stablecoin' in its name, lacks any stablecoin infrastructure or meaningful operating business, primarily holding a substantial amount of SKY tokens instead.
As of October 2, 2026, Stablecoin Development Corporation held approximately 2.32 billion SKY tokens, representing about 10% of the total supply of the token. Fugazi estimates the fair value of these holdings at around $180 million, a significant increase from $119.2 million at the end of June 2026. The company reported earning $2.2 million in staking rewards from its SKY position during the second quarter of 2026, but no substantial operating revenue was noted.
The report raises concerns about liquidity, suggesting that the company's large stake in SKY tokens could hinder its ability to exit positions without negatively impacting the token's price. Additionally, the report points to potential conflicts of interest, as the CEO of a linked fund contributed a significant portion of the tokens during a private placement that funded the company's pivot to cryptocurrency. The findings also indicate risks related to share dilution and possible wash trading inflating reported trading volumes, further complicating the investment landscape for SDEV shareholders.
Source: KLEA News