Lengthy Island Iced Tea shares went gangbusters after altering its title to Lengthy Blockchain • TechCrunch

Need to improve firm worth on the open market? Simply change your title to one thing blockchain. A minimum of, 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 percent in pre-market buying and selling this morning after the corporate introduced the title change, settling again to a few 275 % 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 $23.8 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 important 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 companies like Riot Blockchain, which was a struggling biotech firm that had gone by means of a number of title modifications (most not too long ago 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 an identical path. It nonetheless plans to promote non-alcoholic ice teas and lemonades as a subsidiary however now says it is going to be primarily searching for to companion or make investments with firms concerned in blockchain know-how and would really like NASDAQ to vary the corporate’s buying and selling image to mirror 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 website says Lengthy Blockchain is within the “preliminary phases of evaluating particular alternatives.”

Lengthy Blockchain is simply the most recent in little-known micro cap shares capitalizing on blockchain to spin heads on the buying and selling flooring, leaving some traders nervous about potential fraud and unmerited valuations.

The U.S. Securities and Alternate Fee has been clamping down on different small inventory firms that’ve profited from crypto title modifications. For example, the SEC suspended trading in shares of The Crypto Co., which noticed a surge in inventory worth by as a lot as 17,000 % within the final three months after saying 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 “considerations relating to the accuracy and adequacy of data.”

It’s unclear what actions, if any, the SEC would take for Lengthy Blockchain, nonetheless. The corporate couldn’t be reached right now and to this point we’ve got not heard again from the SEC for remark.

One factor is bound, although, such a exercise displays a really bizarre and wild crypto experience this yr.

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