Last year, after Long Island Iced Tea, which produced soft drinks, has rebranded and changed its name to Long Blockchain, the price of shares in the company soared, increasing by 432% in just the first day.
However, the success was short-lived and the Nasdaq has announced that it excludes the shares of the company from the registry.
That the company’s shares can be excluded from exchange listing, Long Blockchain was warned back in February. Under the rules of Nasdaq, in order to be recorded in the register of the exchange, the company’s market capitalization must be at least $35 billion in the next 10 days. Long Blockchain at the time, it was worth the $33.01 billion.
Nasdaq also believes that the company has introduced investors to the fact that after rebranding the Long Blockchain has announced plans for a real entry into the cryptocurrency space, but it never came.
After it was confirmed that the company’s shares are no longer traded on Nasdaq, the stock price fell to $1.1 apiece, while in December it was close to $10.
Long Blockchain has become an example of how to extract fast profits from using the most popular trend. About the same happened with companies TimefireVR, India Globalization Capital, and Longfin, which announced its move into cryptocurrency market, or just added in the title the word «blockchain».
Even shares of Eastman Kodak, the cost of which has not changed over the years, soared after in January it was announced the merger to create a digital token KodakCoin.
We should also mention Longfin. It shares two of the December day increased by 1342% after the company announced the acquisition of the blockchain startup. Besides the fact that Longfin also received a notice from Nasdaq on delisting for failure to provide timely quarterly report, the company has problems with the regulator. The Commission on securities and exchange Commission got a court order freezing more than $27 million in proceeds from the sale of shares Longfin, stating that the profits were derived from illegal transactions by insiders.
Both companies are now looking for ways out of this situation.