Blockchain technology has many roles to play in the financial sector. For some companies, it is a great way to pivot their business model and inflate stock prices. Long Blockchain is one such company which seems to rebrand itself more often than some people change their socks.
Long Blockchain is at it Again
Late last year, the cryptocurrency and blockchain community began to see a new trend emerging. Companies suddenly started flocking to embracing a blockchain-oriented business model to inflate prices of their publicly traded stock. Long Island Iced Tea has been one of the more interesting companies pursuing this option. Its launch of the Long Blockchain subsidiary had a positive short-term impact on the company’s stock values. When the craze died down, however, so did their stock prices.
Ever since, there have been questions as to what the company will do in the blockchain world. There is no clear answer to that question at this stage, as the company itself admits that they have no immediate plans to implement the technology. The whole situation is dodgy enough to cause Nasdaq to delist the company over the issue.
Now, according to sources, Long Blockchain appears to be shifting its business focus yet again. Instead of pursuing blockchain options, however, the company will now focus on gift cards. This latest pivot will also usher in a new CEO overseeing the company’s operations moving forward.
This change will be achieved through a new subsidiary known as Stran Loyalty Group. That firm will focus on loyalty, incentive, reward, and gift card options and programs. It is unclear if they will offer any blockchain-oriented services and products to corporate clients. Its primary business focus lies on implementing disruptive technology, which may open the door for distributed ledgers in the future, although further specifics remain unclear.
Shenanigans or a Clear Vision?
This latest development involving Long Blockchain raises a lot of questions. Since its original rebrand, there have been no commercial applications involving blockchain technology . Creating a new subsidiary to pursue a different business model potentially using this technology may finally kickstart these efforts. Effectively doing so will still require a lot of time, effort, and money.
At this time, Long Blockchain and its subsidiary do not have any working technology pertaining to distributed ledgers. Building this infrastructure needs to be the first order of business. There is no plan of action to address this, nor is the company employing personnel with the necessary skills and knowledge to remedy this situation.
A lot of eyes will be on Long BLockchain moving forward. It was one of the first publicly traded firms to shift its focus to blockchain, yet they have not lived up to the expectations at this time. With this new subsidiary, the company is only muddying the waters even more. Until the subsidiary delivers on its initial promises, their efforts will continue to be scrutinized and taken with a grain of salt.
What do you think of Long Blockchain’s latest move? Is it a legitimate shift towards possible blockchain adoption and integration or just another money grab to boost stock prices? Let us know in the comments below.
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