There’s nothing easier than making money on the wave of hype. When a new trend enters the market, entrepreneurs try to make the most of it in their enterprises. So as it happened with the blockchain technology. Yet we are not talking about using technology to improve and automate the work of enterprises, nor are we talking about ICO. Blockchain became a kind of brand, which is confirmed by the experience of several companies in the US.
The leaders of such enterprises as the producer of Long Island Tea, Riot, and LongFin noticed that if you use cryptocurrency in advertising or add the word “blockchain” to the company name, then the price of the company’s assets instantly increases several times. For example, the stock price of LongFin has increased more than 3.5 times.
Of course, financial regulators quickly figured out a similar strategy for businessmen, for which they received a warning. Meanwhile, the company’s shares not only returned to the initial level, but even decreased in price. It is clear that investors will not tolerate fraud. Nevertheless, one should carefully consider market news, this behavior of entrepreneurs proved that it is better for a prepared investor to refrain from entering the market, since there are a lot of scammers around blockchain and cryptocurrency.