At least 100, possibly. We could be in for at least 100 more instances this year of companies pulling a Long Island Iced Tea Corp. — or a Long Blockchain (LBCC), or what have you — either by stapling the word “blockchain” to their name or announcing that they’re doing something with the technology.
X That forecast comes from Autonomous Research, which based the number on the results of a 2002 academic study by researchers from Purdue University, University of Virginia and Wake Forest.
That study’s findings, the researchers said, “add support to a growing body of literature that documents that investors are irrationally influenced by cosmetic effects.”
“If history is a guide we’ll see 100+ instances of this in 2018 — an academic study found that in the Dot Com bubble the instances of name gaming went from 13 in 1998 to 126 in 1999,” Autonomous analyst Lex Sokolin said in an email, which started off with a section on “blockchain pretenders.”
As for some of the stocks that Autonomous lists as making the blockchain pivot, Long Blockchain was down 2.7% on the stock market today, after changing its ticker to LBCC from LTEA on Friday. Riot Blockchain (RIOT) fell 3.5%, Chanticleer Holdings (BURG), a restaurant operator that plans to develop a cryptocurrency loyalty program, leapt 12%, Marathon Patent Group (MARA) fell 8%, and Overstock.com (OSTK) added 3.7%.
IBD’S TAKE:Even as Bitcoin heaves higher and occasionally crumbles, the outlook for blockchain has been more stable.
Autonomous has identified more than 30 public companies that have tried to be find a way into the ever-enduring blockchain crypto-rave, “by either adding Blockchain to their name or putting out a press release announcing a pivot to Blockchain technologies.”
The median stock in among those blockchain companies rose 265% last year, compared with the 118% spike produced by name changes during the dot-com era, Autonomous found.
Still, even as what Sokolin calls proliferate amid the binge-buying of Bitcoin, many analysts believe that the technology, which underpins Bitcoin transactions, has the potential to outlast the current hype.
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This article was curated from Google News. You can read the original article here.