How the use of the word “blockchain” allows companies to increase capitalization
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Cryptocurrencies and blockchain have recently been aroused serious interest, both among ordinary users and businesses. Moreover, business has learned not only to use new opportunities for raising capital - for example, ICO. Some companies acted even simpler — simply adding the word “blockchain” to the name or promising to introduce the technology in the future helped them raise their capitalization.
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"Blockchain" in the title = increase in business value
At the end of December 2017 it was reported that the company for the production of cold tea and lemonade Long Island Iced Tea Corp. I decided to expand my activities and, in addition to my main occupation, conduct research in the blockchain sphere. It was after this that the shares of the organization renamed Long Blockchain Corporation rose 200% in just one day. And this is despite the fact that in reality the initiative to introduce the blockchain in the company is only “ at the initial stage ”.
Moreover, it turned out from the Bloomberg investigation that before the name change, the company's shares were threatened to be removed from the list of traders on the NASDAQ due to low capitalization. Also, the company was presented a condition according to which it had to achieve the price of $ 35 million within 10 working days. Already on December 21, after the name change, the value of the company was $ 70 million and remained at a level just above the exchange.
However, Long Blockchain Corporation was not the only organization that benefited from the cherished “blockchain” in its name.
In October 2017, the British investment company On-line Plc decided to change its name to On-line Blockchain Plc and its shares rose 394%. This is the biggest price jump that she experienced since the start of trading in stocks in December 1996.
Shares are growing and on blockchain deployment
Shares of the Japanese company-developer of the popular messenger Line Inc. went up by 10% after the information on possible cooperation with the South Korean cryptocurrency exchange Upbit. Now Line is working on the implementation of cryptocurrency in its application, according to an anonymous source Bloomberg.
Immediately after Kodak announced the creation of the KODAKOne blockchain platform and the upcoming ICO, the value of its shares increased by 44%, and the next day it did increase by 90%. Interestingly, earlier, in the third quarter of 2017, the company's net loss amounted to $ 44 million, and in recent years, the photo giant sold out its patents and was on the verge of bankruptcy.
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Source: https://habr.com/ru/post/346948/
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