Stocks That Soared On Crypto News Are Sinking
Today's cryptocurrency market plunge has ensnared the prices of several publicly-traded companies that in recent days have sought to tout their work with cryptocurrencies and blockchain.
Firms like Long Island Iced Tea (which this week declared that it would rebrand as "Long Blockchain Corp"), Riot Blockchain and LongFin are down, according to available market data.
The developments are a notable one, given that the past days have seen numerous reports about little-known firms – some of which specialized in the sale of, say, iced tea or electronic trading tools – that see their stock prices jump virtually overnight once they announce that they are moving to develop products or services around the tech. It's a state of affairs that has arguably raised eyebrows among some observers and sparked warnings from the SEC as well as groups like FINRA about the risk of pump-and-dump scams.
As it stands, many of those firms are witnessing declines as of the market opening today.
At the same time, the public stocks are seen by some observers as a proxy for interest in – as well as the hype around – the tech by traditional investors. Whether these moves continue in light of the cryptocurrency drop remains to be seen.
Source:
https://www.coindesk.com/stocks-soared-crypto-news-also-today/
Great post. I read with interest in the New Zealand Herald today that Eric Watson (whom I used to work for and have some distant ties with in my current role) is moving from tea to mining. That says alot. He just sold his sizeable estate in Auckland. Perhaps he has some money to park?.