As you may or may not be familiar, on December 21 the company formerly known as Long Island Iced Tea Corp., now Long Blockchain Corp. (NASDAQ:LTEA), announced its interest in getting involved with blockchain technology. The result was an overwhelming increase in the company’s stock, which soared well over 200% at the time.
And now? Here’s an update on where the company is at now, just under a week after its grand announcement.
For those not familiar with what happened, Long Island Iced Tea said that it was interested in becoming involved in the blockchain industry, but said little to explain how the company was planning to execute this or even incorporate it into its current business of selling iced tea (which it had already committed to continuing to do so). To put it more blatantly, the company said that its big move to blockchain may end up falling through.
And with these incredibly low-commitment suggestions, the company entered into blockchain – except, it didn’t really. Beyond changing its name to Long Blockchain Corp., the company has done little else in terms of following through on its claims to drive towards blockchain, which really comes as no surprise considering the rather blasé attitude the company took towards the whole thing. So it should come as even less of a surprise that the company’s stock has dropped back down since this announcement and is continuing to decline. Before the announcement, the stock was going for $2.46. On the day of the announcement, it increased to as high as $8.26. As early as the next day, it had already dropped down to $5.18 and it has been on the decline since the opening of the market on December 26.
Now, at the time of writing, the stock is at $4.18, putting it down $0.62, or 12.9%, from the previous close of $4.80. That’s a far cry from $8.26. This is a prime example of a company hoping to jump on the coattails of the blockchain craze, which sees companies’ stocks increasing after any announcement involving the technology. However, in order to sustain that price increase, companies will actually have to follow through on the commitments towards blockchain. We can see, from the decreasing price of Long Blockchain, that a name change just isn’t going to cut it anymore. Maybe the company did want to become involved with blockchain, and it may still make the switch over, but judging from the decrease in its stock, at the moment it looks like all the company really wanted was to ride that crypto-high for as long as it could without actually doing anything – which turns out, isn’t very long.
People are starting to see through the veneer of blockchain; only those companies actually committed to the technology and its full incorporation with it are going to continue benefiting from its involvement with it. And right now, Long “Blockchain” Corp isn’t one of them.
Featured Image: twitter
