On December 21, 2017, a small U.S. beverage company made headlines after its share price surged by more than 432% in a single day — the only catalyst being a corporate name change that added the word 'blockchain'. Long Island Iced Tea Corp rebranded itself as Long Blockchain Corporation, triggering a frenzy of speculative buying that quadrupled its market value.
A 432% Surge on a Name Change
According to reports from CryptoComLearn, the company's stock jumped over 400% immediately after the announcement. CEO Philip Thomas declared in a press release: “We view advances in blockchain technology as a once-in-a-generation opportunity, and have made the decision to pivot our business strategy in order to pursue opportunities in this evolving industry.” He added that the firm would assemble a world-class team to explore the distributed ledger space. However, the same press release candidly stated that all discussions were only in preliminary stages and that “there is no assurance that a definitive agreement with these, or any other entity, will be entered into or ultimately consummated.”
Same Business, Different Name
Despite the bold rhetoric, Long Blockchain Corporation had not formed any partnerships, made any investments, or engaged in any blockchain-related activities at the time. The company explicitly noted that it would continue producing iced tea beverages. In essence, the “pivot” amounted to nothing more than a cosmetic change — yet the market reacted as if a fundamental transformation had occurred. This case illustrates the extreme level of hype surrounding blockchain and cryptocurrency concepts in late 2017.
Following the Trend: Hong Kong's Future Fintech
Similar market behavior was observed earlier in 2017. Skypeople Fruit Juice, a Hong Kong-based beverage company, changed its name to Future Fintech Group in June 2017. Following the rebranding, its share price doubled amid Twitter-fueled speculation that the company was pivoting to blockchain or crypto. CNBC reported that despite the name change, “there is no mention of 'blockchain', 'bitcoin' or anything crypto-related in the release or the company’s November presentation to investors.” Future Fintech's website still described its mission as “developing a highly integrated agricultural products and finance company that promotes healthy living through high-quality nutritious products.”
Lessons from the Blockchain Name Game
Both cases demonstrate the powerful — and often irrational — market reaction to blockchain-related branding. Companies with no technological expertise or operational plans in the space can see their valuations soar simply by adopting trendy terminology. For investors, these events serve as cautionary tales about the dangers of hype-driven speculation. Long Blockchain Corporation has yet to provide any evidence of actual blockchain adoption, leading many to question whether the name change was a deliberate attempt to capitalize on market mania.
As of late 2017, the company's core business remained iced tea production. Whether Long Blockchain Corporation will ever follow through on its blockchain ambitions — or whether it will remain a case study in speculative excess — remains to be seen.