Ethan Allen will change its ticker so that investors do not confuse it with Ethereum
Ethan Allen, a furniture trading firm in the United States for over 90 years, decided to change its market ticker after a sudden commotion this spring when investors garbled its shares with the Ethereum digital currency.
In May of 2021, shares of Ethan Allen company, based in Danbury, Connecticut, suddenly began to rally, gaining more than 56% in less than a month. It turned out that especially inattentive traders mistakenly mistook the ETH ticker, fixed by the firm on the stock exchange, for that of the second cryptocurrency asset on the market. But is it worth saying that the difference in the value of shares and tokens was colossal at that time?
As a result, on August 5th, representatives of the furniture firm declared the change of the ticker on the NYSE from ETH to ETD. Now, retail stock market investors are unlikely to make such a “minor” mistake when buying shares.
In addition, according to the CEO of Ethan Allen, Farooq Kathwari, this move will benefit the business itself. After all, now there will be no confusion not only on the exchange, but also in the results of search engines, where the ETH ticker most often flashed in the context of cryptocurrency news, but not about furniture. Kathwari also added that the D is "design" in the company's fresh stock ticker.
Even with the confusion, the furniture company rallied 80%, while Ethereum surged 580% over the same period. Some community members jokingly noted on Twitter that this dynamic demonstrates the disadvantage of investing in “sofas”. Seeing these figures, it is difficult to disagree with this.
The ticker will be changed on ETD on August 16, 28 years after ETH debuted on the NYSE.