Crypto and Blockchain Stocks Pulverized as Bitcoin Falls
Bitcoin was trading below 60% of its peak value at one point this week before rebounding and surging above $8,000 on Friday, February 9. The price of bitcoin and other cryptocurrencies has plummeted since the mania reached its most intense phase in mid-December. Stocks connected to the rise in cryptocurrencies and the interest in blockchain have also been battered in this period.
Long Blockchain Corp. (NASDAQ:LBCC), which surged after changing its focus from iced T to blockchain research in December, has dropped 43.7% so far in 2018. The company had entertained the idea of buying bitcoin mining equipment but has since backed off on this ambition. The stock is now trading close to its pre-blockchain pricing.
Glance Technologies Inc. (CSE:GET) owns and operates Glance Pay, a mobile payment app for restaurants. The stock soared in the fall of 2017 after Glance announced that it would incorporate bitcoin into its Glance Pay app, allowing customers to make payments with the cryptocurrency. The stock hit an all-time high of $3.20 in December but has dropped 41% in 2018 and is now trading at $1.21 at the bottom of the noon hour on February 9.
Eastman Kodak Company (NYSE:KODK) launched KodakCoin in early January. Since surging after the announcement, Kodak stock has lost over 50% of its value. In a research note released on February 7, Kerrisdale Capital called Kodak’s blockchain effort into serious question, alleging that it was “a last-ditch stock promotion gambit”.