Chris Hoff/ January 8, 2018/ News

The official Fort Worth U.S. Securities and Exchange Commission’s office has taken aim at the recent trend of publicly-traded companies looking for a blockchain price boost.

The past few months, we have seen a re-branding of publicly traded companies, reminiscent of the re-branding we saw during the .com bubble in the late 90s. So far, we have seen everything from a medical supply company, to a virtual reality platform, to an Iced Tea distributor add the word “blockchain” to their company only to see a surge in their stock price.

  • Riot Blockchain, formerly a medical company known as BiOptix Diagnostics, saw over a 486% surge after changing their name and investing in cryptocurrency mining equipment.
  • LongFin, saw a 2600% surge in price after acquiring a blockchain micro-lending company.

These massive price gains have evoked much criticism, numerous stock freezes, and now, a taunt from the Fort Worth SEC, who today posted the following on their Twitter:

 

While these companies have announced efforts to work with blockchain or, at the very least, mine cryptocurrencies, investors should be weary and consider the high possibility of these stocks being overvalued.

Image of SEC Headquarters from https://www.insurancejournal.com