A Growing Bubble: The Blockchain Name Rush

As companies add “blockchain” to their name to boost their share price, it’s difficult to avoid comparing cryptocurrencies in 2018 to the dotcom bubble at the turn of the century. Though cryptocurrencies are plummeting alongside the stock market, the vast majority of companies who have made this nominal change have seen huge gains. Many of these “blockchain bandwagoners” aren’t clear on how or if they use the technology, and many are in industries that are completely unrelated.
Regulators are cracking down on cryptocurrencies around the globe, part of the reason for the recent dip. U.S. regulators also suspended UBI Blockchain last month, citing “unexplained” market activity. Until the suspension, UBI Blockchain shares rose 1,000% after changing their name. The signs of a bubble are growing, and comparisons to the dotcom years aren’t unfounded.
While the cryptocurrency market itself rises and falls dramatically, analysts call it a bubble due to the large number of eager buyers and minimal returns in the short-term. How much of this desire to invest comes from the use of “blockchain” in their name? A study in 2001 showed that nearly all the companies that added a web domain like “.com” to their corporate appellation, saw a share price jump of 74%. But if the crypto craze fades, modern day companies can take another hint from earlier bubbles. A second study in 2002 found that shares jumped almost as much when the same companies that added “.com” to their name later removed it.
While the signs all seem to point in a specific direction, the jury is still out. Is a bubble really growing around blockchain tech?

Follow us on social media for the latest updates in B2B!

Latest

ACA health plans
Insurance Companies Should Weight the Growth Potential With Risks When Considering Offering ACA Plans
February 3, 2023

The 2023 open enrollment for ACA health plans saw a 13% increase over 2022. Melanie Musson, an insurance expert with USInsuranceAgents.com, says, “Insurance providers have an opportunity to enter or expand in this growing market, but they should practice caution.” The 2023 Open Enrollment Period (OEP) for Affordable Care Act (ACA) Marketplace health insurance plans […]

Read More
standards for success
Setting Standards for Success
February 3, 2023

Winning the day isn’t just about making every day count – it’s about shifting your mindset to set standards for success and better understand and value the work that goes on behind the scenes – so that you can be as successful as you work to be. Where can you start? In this inaugural […]

Read More
disruptive leaders
Disruptive Leaders: Disrupting Tradition in the Leadership Space
February 3, 2023

Leadership in the workplace has been ever evolving for years now, despite the commonplace leadership traditions most places try to abide by. But leaders must adapt to new and modern changes, as it’s expected that a lot of factors pertinent to leadership will change in the next 10 years, according to Gartner. Disruptive leaders […]

Read More