2018 has not been a great year so far for most blockchain technology stocks. At the latter half of last year, companies were rushing to see how blockchain technology could be adapted to their current business. Many companies even began changing their names and adding “blockchain” to it.
Riding The Blockchain High
One company, in particular, the Long Island Iced Tea Company, now Long Blockchain Corp (NASDAQ:LBCC), announced the changing of their name seeing their stock rise as much as 200%. Seeing as Iced Tea has literally nothing to do with blockchain, sparked some major red flags. If the company announced it would be using the technology for its supply chain management, that would be understandable but they quickly jumped on the train without a clear vision.
News later surfaced that they were in huge financial trouble but the change couldn’t quite save the company. Long Blockchain Corp told investors they were going to buy mining rigs but then later retracted their claims. The company is now being threatened by Nasdaq to be delisted again but this time, for misleading investors.
Blockchain Hype Has Fizzled
Blockchain technology stocks have been consistently in the red as 2018 progresses. Surprisingly, they mimic the cryptocurrency market as it has been a bear market since January. The blockchain companies now have to prove to its investors its actual utility now, rather than just riding on the coattails of the previously surging cryptocurrency market. It also remains unclear if investors have sold these stocks based on the dipping cryptocurrency market.
Blockchain technology is the future for many different sectors but what everyone is trying to figure out, is, who will do it bigger, better, and faster. Which blockchain stock has a strong enough team and backing to pull it ahead of the rest of the pack? That remains unknown at the current moment, but this year should clearly showcase the true leaders within this emerging space.
Featured Image: Pulsosocial
