Need to improve firm worth on the open market? Simply change your title to one thing blockchain. Not less than, that labored for the Lengthy Island Iced Tea Corp after altering its title to Lengthy Blockchain Corp.
In what’s the most 2017 factor ever, firm shares soared by as a lot as 500 p.c in pre-market buying and selling this morning after the corporate introduced the title change, settling again to a few 275 p.c achieve.
Up till this morning, Lengthy Blockchain was a little-known firm making non-alcoholic lemonades and ice teas. As of Wednesday, the corporate had a market worth of simply $23.eight million, however at one level in pre-market buying and selling had 9.76 million excellent shares, giving the corporate a market worth of near $138 million. That’s small by Wall Avenue requirements, however vital contemplating the one issue gave the impression to be the title change.
A lot of the expansion is owed to bitcoin mania. Not a day goes by, it appears, we don’t hear of some new hike within the cryptocurrency’s worth.
Bitcoin-related shares like NVIDIA and AMD are capitalizing on the craze, however so are little-known corporations like Riot Blockchain, which was a struggling biotech firm that had gone by way of a number of title modifications (most lately Bioptix) however noticed a smaller, but phenomenal rise in share worth after switching focus to crypto and including “blockchain” to the title.
Lengthy Blockchain plans to comply with in the same path. It nonetheless plans to promote non-alcoholic ice teas and lemonades as a subsidiary however now says will probably be primarily in search of to associate or make investments with corporations concerned in blockchain expertise and would love NASDAQ to alter the corporate’s buying and selling image to replicate the brand new effort.
Although the corporate says it doesn’t have any agreements in place, the corporate has switched its area to http://www.longblockchain.com and the brand new web site says Lengthy Blockchain is within the “preliminary phases of evaluating particular alternatives.”
Lengthy Blockchain is simply the newest in little-known micro cap shares capitalizing on blockchain to spin heads on the buying and selling flooring, leaving some buyers anxious about potential fraud and unmerited valuations.
The U.S. Securities and Change Fee has been clamping down on different small inventory corporations that’ve profited from crypto title modifications. As an example, the SEC suspended buying and selling in shares of The Crypto Co., which noticed a surge in inventory worth by as a lot as 17,000 p.c within the final three months after asserting plans for a roll out of a crypto buying and selling flooring. The SEC suspended the buying and selling within the firm till January, citing “issues relating to the accuracy and adequacy of data.”
It’s unclear what actions, if any, the SEC would take for Lengthy Blockchain, nevertheless. The corporate couldn’t be reached right now and to date we now have not heard again from the SEC for remark.
One factor is certain, although, this sort of exercise displays a really bizarre and wild crypto experience this 12 months.
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