Amid the hype around the cryptocurrency market, an iced tea company has managed to triple its value after adding the word “Blockchain” to its name. The Long Island Iced Tea Corp., which is a beverage company, changed its name to the Long Blockchain Corp. and expressed their hope to get around partner companies that invest in blockchain, the technology behind bitcoin.
Right after the announcement, the share price of the company skyrocketed and increased by around 500%. Although the price has tamed a little, the increase is outstandingly high, even after the slight drop.
The more interesting fact is that according to the press, Long Blockchain Corporation does not currently have a project or a partner involved in blockchain, but has already added the “Blockchain” word to its name. For now, the company will just continue selling the beverages it usually sells.
The funny thing seems to be that the hype around cryptocurrencies can help the share prices of companies that have nothing to do with digital currencies, but might have “intentions” to enter the “hot” market.
According to The Hill and Bloomberg, Scott Nations, the author of “A History of the United States in Five Crashes, said:
“It’s so reminiscent of what happened in the late 1990s. A company that had nothing to do with the internet would put out a press release that they were going to become an internet company now, and the same sort of thing would happen.”
The cryptocurrency market is now approaching huge tremendous market capitalization of around $600 billion, with bitcoin and ethereum being the two biggest digital currencies by market caps. It seems that the “dominos effect” is going to both crypto and non-crypto companies.