The announcement of a “strategic transformation plan” concerning blockchain caused Future Fintech Group Inc.’s shares to spike and dip according to a June 1 Bloomberg report.
From a 27-percent jump after the disclosure last Friday, the company’s shares dropped inside a half hour and closed the market with shares trading up 1.4 percent.
Investor interest may have gone cold, according to Bloomberg, when they discovered that the same announcement was already made last December which, at the time, brought the shares up shared up to $8. Yongke Xue, Future Fintech CEO said:
“Based on our existing blockchain business, our transformation plan will also aim to create a digital asset application incubator ‘Chain World- Digital Space,’ which provides business incubation and acceleration services including projects finance, technology, talent, and marketing services for up-and-coming blockchain companies.”
A similar rebranding from beverage-to-blockchain has caused a 500 percent jump on the stocks of Long Blockchain Corp. after changing its name from Long Island Iced Tea Corp.
A trend seems to emerging that has caused authorities to clamp down on firms making a quick buck from the hype around blockchain.