Blockchain is here to stay.
But Long Blockchain Corp. probably isn’t.
It’s another typical case of uninformed market investors, high-speculation, and a possibility of fraudulent activity.
Long Blockchain Corp., formerly known as Long Island Iced Tea, rebranded their business model in an attempt to acquire funds and maintain a sense of relevancy beyond being a drink company. The unprofitable beverage maker renamed itself, sending its stock up over 200%, and announced it would be acquiring 1,000 “bitcoin miners”. To anyone informed in this industry, the acquisition of bitcoin miners wouldn’t really matter in the long run — and what are they considering a miner? One GPU? A mining rig?
It seemed like there were many unanswered questions.
And not surprisingly there were.
It has since canceled all plans into the purchase of those bitcoin miners. An equity sale of 4.2 million would have funded the purchase. The sale was then canceled, however, some funds were still raised.
Long Blockchain Corp. first faced a NASDAQ delist in October 2017, about a month before its blockchain-focused reorganization.
Now, a sliding stock price has caused LBCC’s market cap to sit at $33 million, under the NASDAQ required $35 million. Any listed company will face a delisting if they don’t have a market cap of least $35 million for ten days in a row.
LBCC will appeal this decision, but, they must still maintain over a very unlikely $35 million threshold. This is what happens when unethical business practices and herd mentality are used to counter lackluster stock returns.
This reorganization was a temporary solution to a bigger problem. What do you think of LBCC’s actions?
** This article was originally posted on my website, The Art of Cryptocurrency. **