The iced tea maker company, Long Island Iced Tea, is the latest phenomenon to shake up the stock market after refocusing its focus on some aspect of the blockchain ecosystem. In this case, a change of name has allowed the value of their shares to multiply by five in the stock market.
The New York company, which has been concentrated in the ready-to-drink business until now, launched a press release on Wednesday, December 21, 2017, announcing that it would change its name to Long Blockchain Corp. After that announcement, LTEA (as knows in the stock market) reflected a growth of 500% at the beginning of today's trading day.
Graph showing the jump given by Long Island Iced Tea shares after its name change to Long Blockchain Corp. Source: Bloomberg
In the statement, the company confirms that Long Island Brand Beverages, LLC will continue to operate as a subsidiary of Long Blockchain Corp. It will maintain its focus on the beverage trade segment in which it has already positioned itself firmly within the US market.
On the other hand, the renamed firm maintains that it will seek to ally or invest in companies that develop blockchain technology, although until now it has not shown clear signs to confirm these aspirations. It has no agreements with any company linked to blockchain and they even mention that there is no certainty of being able to enter into conversations or reaching an agreement with such companies.
Despite not showing firm signs in the field of blockchain technology, in its new website www.longblockchain.com the company clearly presents its interest in distributed accounting technology and explains the benefits it offers.
WAVE OR TSUNAMI?
There is no doubt that the great boom of bitcoin after multiplying 16 times its value in 2017, together with an unprecedented strengthening of the entire blockchain ecosystem, are factors that explain the euphoria that makes possible rebounds like the one outlined in this article.
Other recent cases of rebranding or name change linked to the blockchain include Future FinTech Group, formerly known as SkyPeople Fruit Juice. Company that still sells packaged foods and has no relationship with cryptocurrencies or blockchain. The new name and a mention on CNBC last Tuesday brought its shares to 215% growth.
Among other similar cases, we have three Israeli companies dedicated to solar energy, apps promotion and the marketing of precious stones respectively, which this week experienced strong rises in the Tel Aviv stock exchange, after announcing projects related to cryptocurrencies and the blockchain. While for its part, the tobacco company Rich Cigars, based in Texas, announced that it was changing its name to Intercontinental Technology to reflect a strategic shift towards "immediate and aggressive bitcoin and other cryptocurrency mining plans", which increased the price of its shares by 1,200%.