Shares of Future Fintech Group Inc., formerly SkyPeople Fruit Juice Inc., jumped and subsequently fell following announcements of a “strategic transformation plan” involving blockchain, Bloomberg reports[1] June 1.
Future Fintech’s shares jumped 27 percent following the announcement[2] Friday, but the rally did not last long. In the course of half an hour the stock had lost most its gains. When markets closed on Friday, shares were trading[3] up 1.4 percent at $2.18.
Future FinTech Group Inc stock chart 6/1/18
According to Bloomberg, market enthusiasm may have cooled when investors found out that the firm made a similar announcement[5] in December, after which shares rose as high as $8. Future Fintech CEO Yongke Xue said in today’s statement:
“Based on our existing blockchain business, our transformation plan will also aim to create a digital asset application incubator ‘Chain World- Digital Space,’ which provides business incubation and acceleration services including projects finance, technology, talent, and marketing services for up-and-coming blockchain companies.”
The Xian, China[6]-based firm reported $562,146 of revenue in the first quarter, the majority of which came from beverage products, according to Bloomberg. At press time Future Fintech Inc. has a market capitalization of $56.835 mln.
Earlier this year, an American[7] company underwent a similar beverage-to-blockchain rebranding, when Long Island Iced Tea Corp. changed its name to Long Blockchain Corp. Long Blockchain’s stock jumped[8] 500 percent following the name change, a gain which has since prompted regulators[9] to crack down on companies capitalizing on the hype around blockchain.
In April, Long Blockchain was delisted[10] from the Nasdaq following multiple delist notices[11]. The Nasdaq Hearings Panel
