Future FinTech Group Stock Skyrocketed With Blockchain Mention, Now Crashing
The formerly known SkyPeople Fruit Juice Inc., increased in value 27% the last Friday after announcing a strategic transformation plan involving the use of blockchain technology. According to Bloomberg, the company changed its name to Future FinTech Group Inc., during the last winter when Bitcoin was traded at its all time high.
But the rally that the company lived did not last long. After skyrocketing, the stock lost more than half of the gains and ended up being traded just 6.5% at 12:15 pm in New York.
Investors participating in the market realized that this was not the first time that the company discusses a plan to ‘strategically transform’ itself using blockchain technology. Back in December, the shares soared as high as $8 dollars.
According to a statement released by Future FinTech on Friday, the company will be trying to create a digital asset app incubator. The main intention behind it is to promote and help enterprises leverage their projects.
“Based on our existing blockchain business, our transformation plan will also aim to create a digital asset application incubator ‘Chain World-Digital Space,’ which provides business incubation and acceleration services including projects finance, technology, talent and marketing services for up-and-coming blockchain companies.”
The firm was able to report $562 dollars of revenue in the first quarter, most of these earning came from beverage products that is currently selling in the market.
Other companies decided to change their names the past so as to benefit from the cryptocurrency craziness that took place at the end of the last year. Most of the enterprises added the word ‘blockchain’ to their names so as to receive an important support in the market. Of course, the price increase in their stocks was not sustainable, but instead it was created just by changing their brand names.