FINTECH: Public Company Blockchain Pretenders

Source: Autonomous Research

Source: Autonomous Research

Welcome to the first rumblings of Crypto Eighteen. We are calling it that to make the whole year more valuable! Apparently this is a tactic that works -- by our count, some 31 public companies have already jumped on the crypto bandwagon by either adding Blockchain to their name or putting out a press release announcing a pivot to Blockchain technologies (including our favorite, Long Island Iced Tea becoming Long Blockchain Corp). If history is a guide we’ll see 100+ instances of this in 2018 – an academic study found that in the Dot Com bubble the instances of name gaming went from 13 in 1998 to 126 in 1999.

The DotCom name game dropped to 36 in 2000, and from late 2000 through 2001 the trend completely reversed with 57 companies deleting DotCom from their names. Oops! But let’s be honest: No one likes to talk about hangovers in the middle of a party. Turning to performance, the median stock in our Blockchain sample is up 265% in 2017. This puts the Dot Com name game to shame, where stocks with name changes only went up 118%. Paltry compared to the rise of Bitcoin, but what isn't. And if you haven’t started hating yourself for not being a Blockchain millionaire yet, let us just point out that these "Blockchain" companies have a combined market cap of $22bn.

Without further ado, here's the sample: The Crypto Company (CRCW), Natural Resources Holding Ltd (NRHYY), Global Blockchain Technologies Corp (BLKCF), Intercontinental Technology (RCGR), LongFin Corp (LFIN), UBI BlockChain Internet (UBIA), Riot Blockchain (RIOT), MGT Capital Investments (MGTI), DNA Dynamics (DNAD), Online Blockchain PLC (OBC-GB), Digital Power Corp (DPW), Nodechain Inc (VPTK), Siebert Financial Corp (SIEB), Xunlei Ltd (XNET), Seven Stars Cloud Group (SSC), (OSTK), US Global Investors (GROW), BIG Blockchain Intelligence Group (BIGG), Net Element (NETE), Gain Capital (GAIN), Nxt-ID (NXTD), NQ Mobile (NQ), Long Island Iced Tea (LTEA), Hive Blockchain Technologie (HIVE), 360 Blockchain Inc (BKLLF), Social Reality Inc (SRAX), On Track Innovations (OTIV), Future FinTech Group (FTFT), Chanticlear Holdings (BURG), Marathon Patent Group (MARA), Blockchain Group  (364-HK)

We don't recommend anything about these companies, other than noting that they exist, are doing this, and are gaming the pinballing valuation mechanics between the public, private and crypto markets. Speaking of, did you say Uber's price collapsed by $30 billion?