Vinco Ventures (NASDAQ:BBIG) is a complicated company. Vinco is planning to merge with ZASH Global, it is acquiring digital advertising service AdRizer and it is spinning off its crypto business, Cryptyde. As a result of all these moves, BBIG stock has been quite volatile.

Over time, however, it’s becoming clear that Vinco faces many challenges. None of Vinco’s businesses has, as of yet, demonstrated an ability to generate consistent profits or cash flows. In fact, Vinco has reported high operating losses and diluted its stock a great deal in recent quarters. And those trends seem likely to persist in the near term.

Vinco’s Various Ventures

For awhile, Vinco appeared to be focusing on cryptocurrency and non-fungible tokens (NFTs). That may have made sense when Bitcoin (CCC:BTC-USD) was nearing $70,000 and NFTs were all the rage. However, crypto has gone into a deep slump recently, and the amount of money being spent on NFTs appears to be diminishing as well.

Perhaps partly due to the status of the crypto and NFT markets , Vinco is spinning off its crypto business, called Cryptyde, into a separately-traded company. When it is spun off, in a move that is expected to occur soon, it will have the ticker symbol “TYDE.”

However, given Cryptyde’s underwhelming financial results and  the deep downturn of cryptos, don’t expect TYDE stock to be worth too much as a standalone entity. And meanwhile, Vinco had to dilute its shareholders with another equity and bond offering to fund the upcoming  spinoff.

With the crypto business leaving, Vinco will now focus on its ZASH unit. ZASH has acquired other businesses; most notably, it has bought Lomotif, a short-form video platform which seeks to compete with TikTok.

Lomotif has occasionally spiked in popularity in the wake of deals that it has made with celebrities. In general, however, it has failed to gain much traction. As of Feb. 25, for example, the app ranked #147 in the Apple (NASDAQ:AAPL) store’s “Photo and Video” category. That’s hardly indicative of a massive following.

The Ted Farnsworth & Moviepass Connection

Another reason to be concerned about Vinco is its leadership. That’s because the co-founder of its ZASH unit is Ted Farnsworth, who was the chairman of  MoviePass.  The latter venture was a short-lived movie ticket subscription business that went bankrupt amid a sea of controversy and  complaints by the Federal Trade Commission.

Back in 2017, before Moviepass went bust, Bloomberg highlighted Farnsworth’s less-than-sterling history as an investor. The news service noted that:

“Some of Farnsworth’s past ventures haven’t lived up to their billing. The [then] 55-year-old spent several years in the murky world of penny stocks, thinly traded securities that spike on hype and fall just as quickly. Three public companies he led faded into obscurity after failing to deliver on their promises, and their stocks have all dropped to near zero.”

And now Vinco and ZASH appear be Farnsworth’s next venture  that drops toward zero. Already BBIG stock has collapsed from its recent highs as the hype surrounding the “next TikTok” has rapidly died down. It doesn’t take a crystal ball to see what might happen next.

The Verdict on BBIG Stock

Vinco Ventures is working on a lot of interesting projects. However, the odds of Vinco ultimately succeeding are low. Anytime you see a company change its name, alter its business model, and being led by executive who were involved with failed penny stocks, the company’s odds of rewarding its shareholders aren’t good.

Maybe Lomotif will be the future of short-form video. Or maybe one of Vinco’s other businesses will suddenly gain momentum. Anything could happen.

However, the only thing I’d be willing to bet on when it comes to Vinco is that the company will continue to generate sizable operating losses while diluting its shareholders dramatically. In other words, investors should steer clear of BBIG stock.

On the date of publication, Ian Bezek did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a sizable New York City-based hedge fund. You can reach him on Twitter at @irbezek.