Bitcoin and Blockchain is all the rage in more than just individual investors’ circles, and companies are trying to cash in on the craze. While some are launching their own ICOs, such as Kodak, others have merely tacked ‘Blockchain’ onto their name and seen success.
In a move that seems dangerously similar to what happened in the 90s with the dot-com boom, the ‘Blockchain revolution’ taken on by some companies requires careful scrutiny as much of it is smoke and mirrors.
Speaking of smoke, the cannabis revolution that followed its legalization in a few states also came with a similar warning from the SEC about business cashing in on that hype.
Among the host of companies trying to wrangle their way into the hyped market is the company formerly known as Tulip BioMed – now Bitcoin Services. This change in name and direction saw the company’s stock increase by a massive 43,500 percent last year.
To their credit, the name change came back in 2016 and only took off last year in November with the hype that came with the cryptocurrency market in the mainstream.
Bitcoin Services financial filings from around that time offer few clues that the company was doing anything specific to justify the hysteria. The same can be said of its website, which generally lacks press releases and other investor information, apart from contact information.
Bitcoin Services probably takes the top spot in terms of growth thanks to its name change, but there is a host of others that have made anywhere between 309 and 20,445 percent gains thanks to the change, as shown below.
|Trading Range 2017
|Tulip Bio Med
|UBI Blockchain Internet
|Natural Resource Holdings
|HIVE Blockchian Technologies
|Grand Pacaraima Gold
|First Bitcoin Capital
|Global Blockchain Technologies
|AE Innovative Capital
|Long Island Ice Tea Corp
|Transeastern Power Trust
|Plockchain Power Trust Unit
Another worrying trend that is reminiscent of the dot-com boom is that these gains do not last long as people quickly catch on or regulators step in.
Those who believe the entire cryptocurrency market is one big bubble often point to the similarities in hype between the dot-com bubble and these happen around companies taking advantage of the mania and speculation.
It remains to be seen if the cryptocurrency market can weather this mania better than other similar bubbles.