The Long Island Iced Tea Corp. changed its name to Long Blockchain Corp. and guess what happened?
In pre-market trading, according to TechCrunch, its share price jumped as much as 500% before settling back down at 275%. Now the compay's worth about $92 million instead of its previous $23.8 million value. All of this prompted by adding "Blockchain" to its name.
Long Island Iced Tea isn't the first company to jump on the bitcoin craze. Bioptix, a biotech firm, also saw a recent jump in its stock price when it changed its name to Riot Blockchain. CNN Money reports that tobacco company Rich Cigars (now Intercontinental Technology, Inc.) and e-cigarette firm Vapetek's (now Nodechain, Inc.) stock prices shot up after announcing they were becoming blockchain companies. And, according to Payment Week, online retailer Overstock.com, after switching focus to its blockchain operations with the launch of tZERO, a trading system for cryptocurrency, also experienced big stock gains.
The New York-based Long Island Blockchain says it will continue to produce iced tea and non-alcoholic lemonade drinks as a subsidiary and it's now seeking partners and investments with companies involved in blockchain technology, which is used to record cryptocurrency transactions.
This type of name change hasn't escaped the view of regulators. The US Securities and Exchange Commission (SEC) suspended trading in shares of The Crypto Company, after a 17,000% stock price surge followed its announced plans for a crypto trading floor. The SEC suspension cited “concerns regarding the accuracy and adequacy of information.”
We'll definitely keep an eye on this naming trend this year.