Adding “Blockchain” To A Company Name Is Likely To Boost Its Stock Price

Adding “Blockchain” To A Company Name Is Likely To Boost Its Stock Price

A UK company saw its stock price rise up in a meteoric level after it simply added the phrase “blockchain” to its full name.

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A UK company saw its stock price rise up in a meteoric level after it simply added the phrase “blockchain” to its full name.

As Bloomberg reported, the information investment and internet company called On-line Plc witnessed its stocks surge by an incredible 394%. This happened on Friday and after it announces a major change – it decided to transform its name into “On-Line Blockchain Plc”. This ended up the biggest single-day gain for the same company, which has a public listing (LON: ONL) on the London stock exchange since 1996.

Also, the company’s single-day trading volume also rose 16 times over compared to its year-to-date volume achieved prior to this week. The company, based in Essex, announced this change in a statement that was released on Thursday. In it, the company explained that it had been planning on entering the cryptocurrency and blockchain space for a long time. According to the statement, the same domain is an exciting new field in which the company had been working previously. Now, the company feels it is the perfect time to re-name itself and thus reflect the new direction it is taking.

The statement also underlined a firm belief that the cryptocurrency and blockchain area will see a much growth in the future. The very same morning, the price of the share rose to $85 according to Yahoo Finance. It fell to $46 once the company provided a follow-up statement explaining that the development of its initial blockchain product is still in its infancy. But, even with this, the share rose 173% that day.

The same incident would be humorous if not for a range of data showing it to be a trend that is growing. Some weeks earlier, a company called Bioptix, listed on NASDAQ as BIOP, saw the price of its share double once it publicly revealed that it change its name to “Riot Blockchain“. Now, the company’s goal is to invest into cryptocurrency startups and sell biotech patents.

The hype following the blockchain tech is even more prominent in the group of companies that have their shares traded in an OTC (over-the-counter) manner. SEC or the U.S. Securities and Exchange Commission temporarily suspended the process of OTC trading for a company called First Bitcoin Capital. The event which took place in August was preceded by the company experiencing an increase of over 6,000% in its year-to-date trading.

However, the trend is not limited to OTC and micro-cap stocks. Overstock, the online retailer, saw its shares triple in price during the last year, mainly because of the optimism of investors related to its planned blockchain advancements. This week, the price of the share of the same company rose by 30% once its CEO Patrick Byrne declared that one of the subsidiaries of the company working in blockchain development will seek to gain $500 million for their ICO (initial coin offering).

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