At the top of the tech bubble, l & # 39; adding a suffix e – & # 39; e – & # 39; or & # 39; .com & # 39; has caused the assessments of companies to jump several times. During this Bitcoin bull run, the addition of "Blockchain" seems to have the same effect.
On-line Plc or On-line Blockchain Plc?
On-line Plc is a small indefinable company. in the UK, which is listed in London since 1996. The company started as a holding company for a group that was developing multiplayer computer games for the Internet and has been gradually transformed into an investment company. technology.
-Oct-17, the Company announced its intention to change its name from On-line Plc to On-line Blockchain Plc. The Company stated that it has been working for some time to provide systems to support the deployment of Blockchain technologies across a range of applications.
The Company's decision to change its name boosted the stock price, which resulted in the company gaining 19% on Thursday. This turned out to be rather insignificant, compared to what happened on Friday. The Company's share price increased 400% from 17p the day before to 84p. Shares closed the day at 46.50p, a 173% gain over the previous day's close. The volume traded on Friday was several times the annual trading volume of the company.
Blockchain Plc Online is not the only example where investors have rewarded a company for changing its name. When a biotech company changed its name from Bioptix Inc. to Riot Blockchain, its shares jumped 17%. This added to the nearly 100% gain that the stock had in the days leading up to the announcement. It does not matter that Bioptix Inc. was previously a manufacturer of diagnostic machines.
Pets.com is one of the classic examples of dotcom investment mania. The company, founded in August 1998, is widely known through a high-level marketing campaign. At the 2000 Super Bowl, Pets.com paid millions to buy commercials. Although the company increased sales through its marketing campaign, it did not have a viable business model and spent a lot more for advertising than for revenue. Despite this, the Company managed to raise $ 82 million as part of an IPO in early 2000. The weakness of its fundamentals resulted in the collapse of the Company in November. 2000 only a few years after its creation. This resulted in the destruction of $ 300 million of invested capital, including the money raised by the Company during its IPO.
Although the Bitcoin bubble may not play as the Internet bubble, the signs of irrational exuberance are worrisome. Many businesses without a business model or viable product have raised millions of dollars through country offices. The mere addition of the word Blockchain in the name of a company seems to energize investors. It might be time for investors to step back and look at cryptocurrencies without passion.