Blockchain technology has been of great interest to many companies. Some businesses even added the term “blockchain” to their company name to float stock prices. The first company to do so is now getting suspended by Nasdaq. Long Blockchain Inc’s stock will be delisted due to a too low market cap.
It was a matter of time until Long Blockchain would run into some sort of trouble. Formerly known as Long Island Iced Tea, the company changed their business model altogether last year. Venturing into cryptocurrency and blockchain was apparently the ultimate goal. While their stock prices soared briefly due to this development, things eventually returned to normal. As such, Nasdaq has warned the company their stocks will be delisted. The low market capitalization is to blame for this worrisome development.
Curtain Call for Long Blockchain?
There are a few requirements companies on Nasdaq have to adhere to. A company’s valuation needs to remain above $35m for at least 10 days. In the case of Long BLockchain, they have not met that threshold since January 26th. Even though the company’s market cap doubled after the name chance, things turned around quickly. With all markets crashing, Long Blockchain felt the brunt of this dip as well.
Moreover, there is still no indication Long Blockchain is doing anything with cryptocurrency as of right now. Their pivot has not resulted in any major developments. Their mining venture is still not up and running. In fact, it seems that plan has been abandoned altogether, which shows the company is struggling. It is evident this company should not be traded on Nasdaq any longer.
For now, we will have to wait and see what the future holds. It is possible Long Blockchain will merge with a UK-based startup. If that happens, things may not be as dire as they look right now. Long Blockchain has zero experience with blockchain or cryptocurrency as of right now. They have nothing to bring to the table in this regard. Going back to producing beverages appears to be their only remaining option as of right now.
Header image courtesy of Shutterstock