The surge in cryptocurrencies triggered an intense speculative fever. Everyone wants their share of the pie, and some aren’t very careful about the methods to get it.
Take the example of Bioptix, an American company specializing in medical diagnostic equipment for biotech. She recently announced that she was going to change business quite dramatically, to be interested – surprisingly – in cryptocurrencies.
By the way, she decided to change her name, to become Riot Blockchain, as well as her ticker (for “RIOT”, or “riot” in English). A mould of the best taste, you will agree.
You could tell yourself that such a – coarse – maneuver would no t deceive the investors who would avoid the too obvious opportunist.
While the price of the new renamed Riot Blockchain has plateau below $ 4 in recent months, its return to the baptismal font has allowed its price to soar quickly towards $ 8 and then, after announcing a participation in a company dedicated to blockchain
These could only be funny examples of crypto madness if these maneuvers did not recall what happened in the late 90s, when the dot.com bubble was growing.
An American study – conducted by researchers at Purdue University – looked at changes in company names in 1998 and 1999, just before the bursting of the Internet bubble. 95 listed companies had then made this change, adding “.com” or another reference to the Internet. A “re-baptism” which allowed them, on average, to see their course soar by + 74% in the 10 days following the change, and the increase turned out to be quite durable – at least until the final crash.
Today, history repeats itself. Investors throw themselves on all the companies that display – loud and clear – their links with blockchain and cryptos, without necessarily making the necessary distinction between pure opportunists and more serious projects.
This crypto finds its origin in a joke. In 2014, its inventor, Jackson Palmer, decided to make fun of the emerging craze for cryptos by launching Bitcoin, which replicates Bitcoin. The only differences? Its name (you will soon understand) and its logo, a Japanese breed of dog, the ShibaInu. Hence the name (“dog” means “dog” in English).
Evolution of the bitcoin price since its launch
You know my position on cryptos and blockchain: they are interesting, they are useful – and they will be more and more – they will not disappear (even if many cryptos will never recover from a probable and future correction on the sector) but the current craze is clearly excessive.
In this environment of bubbles and frenzy, the examples I have given you are a “memento mori”, a reminder of the danger that cryptos also represent. Perhaps more than any other sector, caution is advised, if only because cryptos are absolutely not regulated.
At the end of the 90s, the SEC and other market control authorities did not do their job perfectly (it is an understatement) but a certain framework was at work. Today, for cryptocurrencies, this control is completely nonexistent. Visit the website crypto-cash.website and trade in bitcoins
Crypto equivalent” of IPOs, are not monitored, controlled or validated by any regulatory body. You can judge that it is an excellent opportunity for daring and visionary investors but it also means that among the valid projects, there are more and more projects which do not hold water, or which are pure scams.
These more than doubtful projects will multiply as the general public’s craze for cryptos grows, and as the frustration of those who had not yet dared to invest in cryptos grows. These scams also feed on the incomprehension of most investors for the blockchain or even the functioning of cryptos.
This is a bubble. It may still last several months, but even if you are convinced that cryptos and blockchain will change finance, money and transactions on the Internet, it is hard to deny that the sector needs to purge itself of its crypto-jokes, or those opportunistic companies that discover a passion for blockchain.
The blockchain does not solve only Double Spending but a whole series of themes related to the unique and secure identity.
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