A Tea Company's Stock Doubled When It Added 'Blockchain' to Its Name
Is this what the Bitcoin bubble looks like?
Left Image: Photo by Chesnot/Getty Images. Right Image: iStock / Getty Images Plus
As anyone who's been on the internet this year knows, the price of Bitcoin has exploded. The idea of making millions for doing next to nothing makes Americans lose their minds, so it's not surprising that people who had never heard of cryptocurrency a few years (or even months or weeks) ago are now more than willing to invest in it. At least some experts say the fact that consumers are reportedly taking out credit card debt and mortgages to do so suggests a speculative bubble is looming. After all, if you ask any given Bitcoin proponent how blockchain technology works, there's a good chance you'll be met with silence or rage.
But the combination of hype and a general lack of knowledge about what's being invested in seems to have some investors latching onto anything with the words 'Bitcoin' or 'blockchain' in it. Or at least that's the only plausible explanation for why a beverage company saw its shares rise by almost 300 percent after a name change from Long Island Iced Tea Corp. to Long Blockchain Corp.
According to Bloomberg, it's just one of several companies that have rebranded to capitalize on the crypto craze. Not that such a pivot necessarily means a whole lot in particular for Long Blockchain, which appears to remain a company that literally sells lemonade—albeit one that was struggling before it got in on the gold rush.
"As with many of the recently christened crypto companies—a list that includes former makers of juice, sports bras and sofas—Long Blockchain so far has little to show for its aspirations," Bloomberg reported. "It has no agreements with any blockchain firms, and says 'there is no assurance that a definitive agreement with these, or any other entity, will be entered into or ultimately consummated.'"
The main thing this company has done differently at this stage, so far as the outside world can tell, is purchase longblockchain.com. Its original website remains intact and promotes their signature product of Long Island Tea.
Speaking of misleading names, this stuff is apparently non-alcoholic.
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