Sometimes, just changing a company’s name is enough to profit from a current trend. Right now, investors are falling over themselves to pour money into entities that are apparently linked to cryptocurrencies, even when they actually have little to do with the technology.
The latest example of this practice comes from New York firm Long Island Ice Tea, which, as its name suggests, sells beverages such as iced tea and lemonade. But earlier this week the company announced it was changing its name to Long Blockchain corp. and that it would “leverage the benefits of blockchain technology.” The result? A 500 percent stock price increase in pre-market trading yesterday.
Long Blockchain corp will still be creating beverages. “The Company will continue to operate Long Island Brand Beverages, LLC as a wholly-owned subsidiary,” it wrote. Exactly how it intends to get into the cryptocurrency business isn’t made explicitly clear, but the press release does say that plans are at their “preliminary stages,” twice. In all likelihood, they will involve investing or partnering with companies in the industry.
Long Island Ice Tea isn’t the only firm engaging in this practice. The Crypto Company, which does deal in cryptocurrencies, was created through a reverse takeover of a company that previously made parts for sports bras,. It recently had its shares suspended by the SEC, who cited concerns over accuracy and “potentially manipulative transactions.”
As reported by Bloomberg, there’s also Nodechain Inc., formerly vaping firm Vapetek inc.; Intercontinental Technology Inc., whose old name was Rich Cigars; biotech company Bioptix Inc., which is now called RiotBlockchain; and Ping Shan Tea Group Limited, now named Blockchain Group Co Ltd.
The new trend brings to mind the dot-com bubble of the late nineties, when companies tried to boost their stock price and encourage investment by adding .com to the end of their names.