Bitcoin’s Bull-Run Giving New Life to Cryptocurrency Stocks
July’s bitcoin price rally has provided a welcome relief for many of us — and where the king goes, so follow his princes, barons, earls, and even the court jesters. In what seems to be indicative of a market-wide bounce, even crypto-tag-along-stocks seem to be experiencing a revival.
All Aboard … the Right Chain
Towards the end of 2017, a whole slew of companies decided that they needed to get in on the blockchain phenomenon – and there were a number of tried and tested methods they could choose to employ.
Some changed their business models to incorporate crypto-mining and ancillary services. Others hooked up with sports stars and rappers, touting the imminent launch of their very own altcoins while claiming they were going to save the world.
Others who perhaps didn’t understand the bandwagon they were jumping on simply added blockchain to their company name.
Love is a Rollercoaster
Those tactics certainly seemed to provide initial results – but, as they say, “what goes up, must come down.” And down they did come, just as soon as people figured out that:
- Starting a bitcoin mining operation doesn’t guarantee success.
- John ‘Golden Arrows’ D’Artsman and L’il Gimp really have no better understanding of crypto-investing than most people’s nan.
- Changing my name to Emilio Blockchain does not make me worth more money.
I guess the price crash and subsequent crypto-uncertainty didn’t help either.
So of course, July’s 30% rally on the bitcoin price has been reflected in the price of these ‘zombie’ stocks. Marathon Patent Group Inc. saw shares rise a similar amount, while former biotech firm, Riot Blockchain Inc. benefitted from a 40% jump last week.
Everybody Jump! Jump! Jump!
“What’s that? Bitcoin is on its way back up? Is Market confidence gaining? Perhaps Lil Gimp was right? Oh why, oh why, oh why did I sell all my WorthlessToken, and dump those shares in Definitely A Blockchain Company Honest Inc.?”
Are you buying into all that again? The stock prices are going back up. Well, I guess that’s what the market does, but please try to remember my mantra of ‘sustainable growth.’
Don’t go getting crazy again.
And What about Online Blockchain PLC?
Online Blockchain PLC, which starred in Bitcoinist‘s original name-change article, was sadly overlooked by Bloomberg. However, the two-time beneficiary of bandwagon-jumping moniker-modifications has finally updated its website, along with its name.
It now describes itself as “UK’s leading blockchain research and development company,” although I’m sure there are many companies contesting that suggestion. Anyway, according to MorningStar, it bounced 4.87 percent in the last day of trading – so, obviously, somebody has more faith in them than I do.
What do you think about zombie crypto stocks? Let us know in the comments below!
Images courtesy of morningstar.co.uk, Shutterstock