Long Blockchain Corp., the company formerly known as Long Island Iced Tea Corp., has announced that it has received a delisting determination from Nasdaq. The U.S.-based company made headlines in December after its name change triggered a 432% gain in the price of its shares over the course of a single day.
Long Blockchain Receives Delisting Determination
On the 10th of April, Long Blockchain Corp. revealed that it had received a “delisting determination letter from the Hearings Panel of The Nasdaq Stock Market LLC relating to the company’s common stock.”
Long Blockchain Corp. had been informed on the 15th of February by the Staff of Nasdaq’s Listing Qualifications Department that a “determin[ation] to delist the company’s securities” had been made. The company appealed the determination, with a hearing having occurred on the 22nd of March.
The Hearings Panel chose to uphold the delisting determination, with Long Blockchain Corps’s shares scheduled to be “suspended on the Nasdaq Capital Market at the opening of business on April 12, 2018.”
Long Blockchain to Remain Public Company Despite Delisting
The company has stated its intention to “apply for its common stock to be quoted and traded on the OTCQB Market.” Long Blockchain Corp’s stock will also “be eligible for trading and quotation on the Pink Current Information tier operated by the OTC Markets Group Inc.”
The company has also stated that the relegation to “the over-the-counter market does not diminish the focus of its efforts to become a leader in blockchain technology.”
Markets Crack Down on Misleading Affiliations With Blockchain Technology
In December 2017, Long Blockchain Corp’s share price exploded by over 400% in a single day, following its renaming from Long Island Iced Tea Corp. The company was one of many apparently seeking to cash in on the over-exuberant market sentiment surrounding cryptocurrency and distributed ledger technology in recent months via rebranding, such as Skypeople Fruit Juice – who were reported to have rebranded to Future Fintech in order reflect its unevidenced claim to be exploring distributed ledger and financial technology, driving a quick 200% pump in its share price.
The trend of companies announcing embellished or fraudulent ties to the blockchain sector has also struck China’s markets, with China Money Network reporting that “More than 20 listed companies have been questioned by the Shenzhen and Shanghai exchanges about their suspicious speculation on blockchain.” The practice prompted Shenzhen Exchange to launch an investigation into companies proclaiming dubious connections to blockchain and cryptocurrency technology.
Despite triggering a quick pump in the share price of several companies, the practice of companies attempting to cultivate an exaggerated or fraudulent association with distributed ledger technology has resulted in little more than an increase in the scrutiny and suspicion with which the mainstream markets treat publicly listed crypto companies.
Do you think that the wave of companies seeking to falsely associate themselves with blockchain and crypto is slowing down? Or just beginning? Share your thoughts in the comments section below!
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