Regencell Bioscience Stock Surges Amid Market Volatility: Experts Warn of Potential Boom-and-Bust Cycle

Regencell Bioscience (RGC) stock has surged nearly 10,000% YTD, raising concerns about a potential boom-and-bust cycle. Social media promotion has played a significant role in the rapid growth of US-listed Chinese stocks, which can be volatile and unpredictable. Investors are advised to exercise caution and conduct thorough research before investing.

Regencell Bioscience (RGC) stock has surged nearly 10,000% year-to-date (YTD), raising concerns about a potential boom-and-bust cycle. This rapid growth is attributed to significant social media promotion, a trend that has become increasingly prevalent among US-listed Chinese stocks. While the surge may seem enticing, investors are advised to exercise caution and conduct thorough research before investing.

The recent volatility in US-listed Chinese stocks, including RGC, has been driven by aggressive promotion on platforms like WhatsApp and social media. This strategy has been observed in several instances, where stocks like Concorde International, Ostin Technology, and Pheton Holdings experienced dramatic price drops after being heavily promoted [2].

Investors have been misled by fake brokers and ads, leading to significant losses. For example, Tia Castagno, a coach based in London, lost all her savings after being convinced to buy Ostin Technology through a WhatsApp group that claimed to be a legitimate US investment firm [2]. The FBI has reported a 300% year-over-year increase in victim complaints involving ramp and dump stock fraud, highlighting the growing sophistication of these scams [3].

The rapid rise and subsequent fall of RGC's stock follow a familiar pattern seen in other microcap stocks. Companies like Regencell Bioscience have seen their shares jump significantly, only to crash afterward. This pattern, known as a pump-and-dump scheme, has been linked to the surge in Chinese IPOs on US exchanges, particularly in the microcap market [2].

Investors are urged to be vigilant and avoid being swayed by social media hype. Instead, they should focus on fundamental analysis and research to make informed investment decisions. Matthew Michel, head of InvestorLink, has been warning about suspicious activity around microcap stocks, providing valuable insights into potential scams [2].

In conclusion, while the surge in RGC's stock may seem alluring, investors should approach it with a critical eye. The volatile nature of US-listed Chinese stocks, driven by aggressive social media promotion, underscores the importance of thorough research and caution. By understanding the risks and staying informed, investors can navigate the complex world of microcap stocks more effectively.

References:
[1] https://www.reuters.com/commentary/breakingviews/evergrande-delisting-is-awkward-moment-china-2025-08-13/
[2] https://www.cryptopolitan.com/investors-lose-nearly-4b-in-microcap-stocks/
[3] https://financialpost.com/financial-times/investors-billions-meme-stocks-pump-dump-scams