Yet these guys have absolutely NOTHING to do with Crypto or Blockchains!

With all the Bitcoin bubble talk recently, my dad sent me an article he had seen on it. However, after I got through it, I realized that the author really didn't say anything about an actual crypto bubble. Instead, he went into showing examples of regular companies, having nothing to do with the crypto-sphere, reaping huge investment boosts just by changing their company name.

Now I understand that not every investor does their due diligence, instead getting caught up in the hype and fear of missing out. His point was that regardless if were currently in a Bitcoin bubble, the craze has expanded into normal, everyday companies trying to benefit with dirty tactics.

What's in a Name?

An example is a company that had been named BiOptix Diagnostics Inc, that after announcing their planned name change to Riot Blockchain, saw their stock price jump 100%! Then when the name officially changed, it went up an additional 17%!

So what changed with the company, it's employees, it's expertise? NOTHING!! This was solely being driven by Blockchain buzzwork!!

Some other examples:

First Bitcoin Capital Corp.

That sounds pretty fancy right? Would you think they help people invest into cryptocurrencies or maybe provide an easy way to convert Bitcoin to your local money?

Not even close!! Up until recently this company was called Grand Pacaraima Gold Corp. It was mentioned in the article that with the stock rose over 6,000% the SEC actually halted it's trading for a while.

On-line Plc

This company had been around and publically traded for over 20 years. So what do you think caused the highest increase in it stock price of 390%? Launch a new product? Maybe implemented an ingenious way to cut costs? Nah.

You guessed it!! They changed their name from On-line Plc to On-line Blockchain Plc.

Now I this this can seem rather silly. But it's sad that so many people are getting caught up in the hysteria they know nothing about and quite possibly throwing away their money. One of the scariest examples is Bitcoin Services Inc, which has changed their name six times in the last twenty years. This of course is paired with a $281 million valuation while only having about $70,000 net income, $90,000 cash and $118,000 in liabilities.

Wait a minute...70,000 + 90,000 -118,000 = 281,000,000? Hrmmmm...

My Point...Do Your Research!!

It's way to easy to be caught up in the hype or given a proposal too good to be true. If someone guarantees outlandish returns on your money, it very well could be too good to be true! (300% in four months sounds great doesn't it? Maybe too good?)

Now I'm not trying to paint myself as a seasoned veteran in crypto-trading. But one thing you learn quickly when there is large sums of money around is that there are people looking to scam you out of yours! And right now there are a lot of individuals as well as entire companies that are more than willing to part you from your money.

Research...the anti-scam!!

You can find the article that I was sent Here.

Image Sources:
Not a Bitcoin
Old Name, New Name
Too good to be true