15 mins ago |
By Avi Mizrahi – |
Peak Blockchain Hype? Firm With No Revenues and No Product Is Worth $1.2 Billion
Following this year’s massive bitcoin rally, a bubble has developed in the stock market that most cryptocurrency traders may not be familiar with. Companies are declaring themselves to be blockchain-based in order to ride the hype train to higher stock prices. The latest example of this is a Hong Kong startup with no revenues which jumped in value about 1,000% this year.
Have We Reached Peak Blockchain Hype Yet?
UBI Blockchain Internet, Ltd. (OTCMKTS: UBIA) does not have any significant operations and just 18 employees according to records at Yahoo Finance. Despite this the company is now worth about $1.2 billion, apparently only thanks to its name which combines the dotcom bubble’s top buzzword with today’s.
Previously, it was engaged in designing a suite of modular, self-contained, automated, and climate controlled units for distributed production of energy. The company was formerly known as JA Energy and changed its name to UBI Blockchain Internet, Ltd. in November 2016. It operates as a subsidiary of Almost Never Films Inc.
Now, the company plans to sell an extra 72.3 million shares owned by its top executives like Chief Executive Officer Tony Liu, regulatory filings reveal. Bloomberg reporters tried to reach UBI Blockchain Internet, Ltd. management for comment but discovered that the company’s phone number is disconnected.
Apex of Saliency
UBI Blockchain Internet, Ltd. claims in its filings with the U.S. Securities and Exchange Commission that it is developing a solution based on blockchain technology “to trace a food or drug product from its original source within the context of the Internet of Things to the final consumer.”
At least one business expert doubts this is anything other than hype. Charles Lee, a professor of management and accounting at Stanford University, commented: “The profile of this company is scary. Blockchain is right at the apex of saliency right now. But you have this problem because it’s hard to verify anything — the technology, the fact that it’s in China. You certainly don’t want to own this stock.”
The last Hong Kong based company we reported on for changing its name, ‘Long Blockchain Corporation’ at least could probably make you an ice tea at the end of the day.