Bitcoin’s Price Revival Boosts Sees Crypto Stocks Experience A Bounce Back


The use of buzzwords to increase profits is not a novel strategy. In the 19th century, railway companies began to use the term “airline” although they did not operate aircraft. During the technology bubble, dozens of companies saw their values skyrocket and then plummet after adding'.com' to their names.

At the end of last year, dozens of small companies were renamed ‘blockchain‘ to increase the price of their shares. Subsequently, their market value began to languish throughout this year when Bitcoin (BTC) fell. Now, while the most important virtual currency is recovering, some of the shares of certain companies are again mimicking movements of the most famous cryptocurrency.

BTC recovered more than 30 percent in July, despite security and regulatory problems that have affected the virtual currency for much of this year. And for example, the shares of Marathon Patent Group Inc, a company that opened a BTC mining plant in Quebec, have posted a comparable profit this month.

Another example is Riot Blockchain Inc, a former manufacturer of machinery for the biotech industry, saw its stock increase by nearly 40 percent when BTC recently jumped to a new level on July 17, bringing it to a low level during the month.

And to mention another case, NXT-ID Inc. shares rose to 5.1 percent this Monday after the company said it is marketing a payment cryptography device with rapper Lil' Flip.

Blockchain Fever

Now, companies that have been running to tie themselves up with blockchain are seeing short-term gains.

These are the cases of the fruit juice companies, which promoted their links with blockchain. While the tobacco companies were engaged in cryptocurrency mining.

“You may get an initial pop in the stock, but generally you’re going to see these things lag behind,”

says Steven DeSanctis, a strategist at Jefferies LLC.

“The market is going to figure out whether or not it has the appropriate growth profile.”

A weighted mortgage portfolio of 45 companies from August the 30th, 2017 to January the 18th, 2018 incorporated cryptocurrency and blockchain technology into their businesses. These gained 800 percent since the beginning of the period, surpassing the S&P 500 and BTC, the largest cryptocurrency by market value.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide