The blockchain technology trend is currently exploding, with hundreds of companies actively researching and offering the tech to the public. Given blockchain’s virtually limitless potential, it now seems that simply using the word can lead to success.
Bloomberg recently reported that a UK-based company focusing on information business and internet tech investing has had one of its best days so far after announcing that it would change its name from On-line Plc to On-line Blockchain Plc.
394% Share Price Increase
Reports indicate that following the company’s announcement on the 26th of October, its share price increased by around 19%. However, a single day later, the company’s share price skyrocketed, seeing an increase of 394%. Not only was it the biggest one-day gain seen by the company since it was listed back in 1996, but the trading volume of 2.9 million shares that it saw that day was 16 times larger than the company’s previous year-round trading activity.
In a statement released on Thursday, the day of the announcement, the company noted:
Blockchain technology and cryptocurrencies are a new and exciting area we have been working on for some time . . . We feel the time is right to re-name the company to reflect these developments, where we believe the future growth will be in our sector.
On Friday, the firm issued another statement reiterating that its work on blockchain technology is still at a very early stage. Clearly, traders remained excited and bullish on the company regardless.
Interestingly, On-line Blockchain Plc isn’t the world’s first company to see a great increase in its share price following a blockchain-related name change. Earlier this month, Riot Blockchain changed its name from Bioptix Inc. and promptly saw its trading volume double shortly thereafter.
Based on these points, what are your thoughts on the massive share price increase that a simple blockchain-related name change can have on a company?