A Visit to the Latest Blockchain Stock: A Long Island Beverage Maker
- Author: Tracy Klein Dec 24, 2017,
Dec 24, 2017, 0:53
In what is the most 2017 thing ever, company shares soared by as much as 500 percent in pre-market trading this morning after the company announced the name change, settling back to about a 275 percent gain.
The effect on the company's stock price was nearly instantaneous. Long Blockchain will continue to make iced tea, but it will also go into "blockchain infrastructure for the financial services industry". The Long Island Iced Tea Corp., which is a beverage company, changed its name to the Long Blockchain Corp. and expressed their hope to get around partner companies that invest in blockchain, the technology behind bitcoin.
The cryptocurrency market is now approaching huge tremendous market capitalization of around $600 billion, with bitcoin and ethereum being the two biggest digital currencies by market caps. Long Island Iced Tea is not even the first soft drinks company to also do so. Long Blockchain so far has little to show for its aspirations.
"The discussions are only in the preliminary stages but indicate the areas of focus for the company", it said "There is no assurance that a definitive agreement with these, or any other entity, will be entered into or ultimately consummated".
After announcing the re-brand, the company's shares rose by a whopping 300% as investors backed the opportunity. Yes, the iced-tea company had formally pivoted to blockchain.
Nasdaq has been investigating the possibility of creating distributed ledgers for private company share registers, while the Australian Stock Exchange is testing whether blockchain could be used to replace its existing clearing and settlement systems.