Shifting to crypto cash, NY iced tea maker sees shares triple

Tammy Harvey
December 22, 2017

Long Island Iced Tea Corp of Farmingdale, New York - which says it now produces the soft drink with a proprietary recipe - announced Thursday it was changing its name to "Long Blockchain Corp" and would explore investments in the technology underlying cryptocurrencies like bitcoin.

Long Blockchain is just the latest in little-known micro cap stocks capitalizing on blockchain to spin heads on the trading floor, leaving some investors anxious about possible fraud and unmerited valuations.

According to its website, the company "is already in the preliminary stages of evaluating specific opportunities involving blockchain technology". Long Blockchain will continue to make iced tea, but it will also go into "blockchain infrastructure for the financial services industry".

Shares took off, exploding 164% to 6.45 in the stock market today after hitting 9.49 intraday. For instance, the SEC suspended trading in shares of The Crypto Co., which saw a surge in stock price by as much as 17,000 percent in the last three months after announcing plans for a roll out of a crypto trading floor. Net Element exploded 272% on Wednesday when the mobile-payments firm announced it would launch a blockchain-focused business unit.


Overstock.com's (OSTK) CEO has floated selling its online retail business to fund developments in blockchain.

As with numerous recently christened crypto companies - a list that includes former makers of juice, sports bras and sofas - Long Blockchain so far has little to show for its aspirations.

IBD'S TAKE: Amid the crpyto-frenzy, the SEC has this advice for investors. Shares plunged 19% on Thursday, but shares have more than quadrupled in value since October 4. O'Rourke has yet to take up that offer.

Other reports by Ligue1talk

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