According to bitcoin.com, the beverage firm Long Island Iced Tea Corp rebranded to “Long Blockchain Corporation”, and its share price increase by more than 400%. The initial rebrand announcement revealed the company’s intentions to pivot its business model.
The latest business move shows LBC is planning to operate a mining facility located in the Nordic country.
Few days ago we reported about a similar story, UUBI Blockchain Internet Ltd, which is a startup company with no revenues, but it’s share value jumped about 1,000%.
In addition, you can read about LongFin Corp(LFIN), Digital Power Corp. (DPW), Riot Blockchain (RIOT), Seven Stars Cloud Group, Inc.(SCC), and Siebert Financial Corp. (SIEB) at wolfstreet.com. According to the post, those stocks soared due to blockchain-related activity. According to the post, those companies have minuscule or no revenues, though their combined market capitalization is many billions.
According to the below quote from wolfstreet.com article, we are in a very late stages of a bubble:
That these companies get away with this, that in fact speculators fall for this crap, that they’re stupid enough to bet what are in aggregate many billions of dollars in a matter of seconds after “blockchain” flashes across their screens, is a sign of just how far the global flood of liquidity has befuddled the minds of these speculators and turned them into knee-jerk betting automatons. This phenomenon happens only during the very late stages of a bubble.
The questions which have been raised are as follows:
Is the share price increase can be justified? Is it FOMO (fear of missing out)? Is it only hope that something good will come out of this new business model? Is it a bubble?
We can think about few good answers for those questions, but we think you already know the answer.
Please note, the stocks mentioned are volatile, and therefore may be very risky. You should consult with independent financial adviser, before making any investment decisions.
You should only use register financial adviser, if things goes wrong, he/she may have professional liability insurance, and you may be able to get back your money.