The Danger of Going ‘All In’ on a New Trend

Today, we take a look at a business that “jumped on the bandwagon” and paid the price…

Remember when businesses started adding “.com” to their names during the dot-com boom? Time and time again, we’ve seen fad investments end badly.

Most recently, the cryptocurrency frenzy burned many zealous buyers…

And one company’s pivot into the new sector failed miserably…

In late 2017, the beverage company formerly known as Long Island Iced Tea rebranded itself as Long Blockchain (LBCC).

It claimed it was exploring investment opportunities that “leverage the benefits of blockchain technology.”

At the time, bitcoin had just hit astounding new highs…

Then, it tanked. After the company’s market cap dropped below the $35 million threshold, LBCC stock was delisted from the Nasdaq. It now trades on the lesser “over the counter” market.

Since its January peak, bitcoin has lost more than 50% of its value. Consequently, Long Blockchain’s stock has tumbled more than 90% from its January highs. For investors and corporations alike, going all-in on a flashy trend is a risk that rarely pays off…

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Source: Daily Wealth’s Market Notes