The surge in blockchain citations comes amid a frenzy surrounding cryptocurrencies. Companies mentioning the term often see their stock jump.
If you want to create the next hot stock, just say the magic word: blockchain.
In the first four days of 2018, there were more than 110 corporate releases that contained the word “blockchain,” data compiled by Bloomberg shows. That’s up from five in the same span last year.
Blockchain is the digitized public ledger of cryptocurrency transactions.
The surge in blockchain citations comes amid a frenzy surrounding cryptocurrencies after bitcoin’s 1,400 percent gain last year.
Companies mentioning the term often see their stock jump, with some even renaming themselves despite having no ties to blockchain in their businesses.
Long Island Iced Tea Corp., for instance, soared as much as 289 percent Dec. 21 after rebranding itself Long Blockchain, while Hooters franchisee Chanticleer Holdings rose 41 percent Tuesday after announcing plans to start a blockchain-based customer loyalty program.
However, there is a question over how much longer this can last, and analysts and investors are continuing to warn of a bubble in bitcoin.
Billionaire Warren Buffett, GMO chief investment strategist Jeremy Grantham and even bitcoin-bull and hedge-fund manager Mike Novogratz have urged caution.