From Producing Ice-Tea to Mining Bitcoin? The SEC Says NO
According to the Bloomberg report, the New York based company Long Blockchain Corp. that used to produce ice tea and other non-alcoholic beverages had a rebranding. Its management decided to use the word that has been hyped up for the last year - blockchain. The previous name of the company was Long Island Iced Tea Corp. At first, it seemed a good idea. The market capitalization blew up with a whopping increase by 500%. The company was even planning to start selling its shares at a price of a little more than $5 per share. Its ultimate goal was switching over to mining Bitcoin. However, it was apparently not meant to be. The hype started to die out, the capitalization lowered. The US crypto exchange Nasdaq removed Long Blockchain Corp. from its listing. The Securities and Exchange Commission struck next. In July the company received official charges from the SEC. The organization claimed that Long Blockchain Corp. was lacking some important documents. No more details has been revealed by any of the sides yet. The representatives of the company refrain from any specific comments. They only said this:
The company is fully cooperating with the SEC’s investigation.”
Frankly speaking, the rebranding played a dirty trick on the company. Although its value did rise at first, right now it dropped from $70 million to only $5 million. A bird in the hand (in our case ice tea) would have been way better than two in the bush (blockchain). Subscribe to CoinShark news in Facebook:
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