Long (Island) Blockchain: Iced tea company follows tech craze and pivots
- Author: Megan Austin Dec 24, 2017,
Dec 24, 2017, 0:57
Shares in a tiny United States soft drinks firm, Long Island Iced Tea Corp, have quadruple in value in just one day after it changed its name to Long Blockchain Corporation, the latest move by a string of obscure companies rebranding themselves in an attempt to ride the bitcoin bubble.
280% 625% in the pre-market after the company announced it was rebranding itself as Long Blockchain Corp.
The developments are a notable one, given that the past days have seen numerous reports about little-known firms - some of which specialized in the sale of, say, iced tea or electronic trading tools - that see their stock prices jump virtually overnight once they announce that they are moving to develop products or services around the tech.
Long Blockchain corp will still be creating beverages. Although it's quite a shift for a company used to making lemonade and other soft drinks, it seems to have made a big impact on speculators, with its market capitalisation rising from $23.8 million up to $92 million. Not a day goes by, it seems, we don't hear of some new hike in the cryptocurrency's price.
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During the internet bubble, some companies were able to boost their stock prices simply by inserting a "dot-com" in their names or, virtually overnight, refashioning themselves as e-commerce companies.
Long Blockchain is just the latest in little-known micro cap stocks capitalizing on blockchain to spin heads on the trading floor, leaving some investors anxious about possible fraud and unmerited valuations. Yes, the iced-tea company had formally pivoted to blockchain.
The U.S. Securities and Exchange Commission has been clamping down on other small stock companies that've profited from crypto name changes. It recently had its shares suspended by the SEC, who cited concerns over accuracy and "potentially manipulative transactions". Long Blockchain so far has little to show for its aspirations.