advertisement
advertisement

Surprise! The Long Island Iced Tea blockchain pivot didn’t work

Surprise! The Long Island Iced Tea blockchain pivot didn’t work
[Photo: Chris Liverani/Unsplash]

Whenever you put your lips on a crisp, cold bottle of iced tea, do you ever think to yourself, “Man, I really could use decentralized ledger-based technology to free me from my current technological paradigm?” If you said no, Wall Street agrees.

The Nasdaq has issued a letter to the newly pivoted Long Blockchain Corp. informing the company that it has been delisted from the exchange, reports MarketWatch. The decision comes as the company was unable to sustain an acceptable market cap.

A little background on how we got here: Last December, a company called Long Island Iced Tea Corp. announced that it was changing its name to Long Blockchain Corpo. and pivoting to the blockchain. Why? Well, no one really knew. But what’s crazy is that, for a little bit, this worked. Bloomberg reports that shares of the company soared over 289% after investors learned of the business shift.

But that didn’t last. After the pivot, cryptocurrencies far and wide began to lose value, and the company’s stock slipped as the bitcoin bubble began to burst. Meanwhile, the company’s announced plans to buy cryptocurrency mining services also seemed to waver–which led to the question: What exactly is Long Blockchain Corp. doing? And what is the intersection of blockchain and refreshing beverages?

Then, reports surfaced indicating that the Nasdaq had already threatened to delist the company before the pivot because its market capitalization was too low. So the blockchain move supposedly was a way to gin up investor interest and keep it on the exchange.

It seems the ploy didn’t work. Even with its buzzword-y business shift, the company was unable to get its market cap to where it needed to be to stay on the stock exchange. So pour one out for Long Blockhain Corp. and its former place on the Nasdaq. I think an iced tea will suffice.