It has been a good three days for the shareholders of Long Blockchain Corp (OTCMKTS:LBCC) who have seen their company make significant gains. This surge – about 33% in gains from a price of $.45 to $.60 – followed a shakeup in the company’s management whereby two new senior-level managers were appointed to the board.
As a result, the price action, coupled with volume increases, shown in the chart below was witnessed:
This spike speaks positively to the market’s belief in the abilities of the two new board members. This is especially given that the company has come from taking several hits as a result of the volatility in the cryptocurrency market driven primarily by the volatility in the price of Bitcoin.
As such, we have taken time to study Long Blockchain Corp as we seek to understand the future prospects of the company given their current disposition.
History of Long Blockchain Corp
Long Blockchain Corp, a Farmingdale, New York-based company, was incorporated back in 2011. Back then, the company – through its subsidiaries – was primarily focused on the production and distribution of ready-to-drink iced tea. During this period, their tea was distributed under the Long Island Iced Tea brand. The company later ventured into the production of lemonades under the same brand name.
However, with the inception of the blockchain, their business strategy took a different path as the management decided to turn to developing blockchain technology solutions for the market. Here, they evaluate the use cases for different blockchain technologies in different market segments and implement them.
It is during this period that the company’s share price has experienced the highest volatility especially given its correlation to the cryptocurrency market. Thus far, the management has been doing their best to stabilize the share price while promoting growth and this seems to have worked.
Recent Developments: A Case of New Management
As previously stated, the announcement of new management who just got into LBCC was met with jubilation by shareholders and the market alike.
According to the company – about three days ago, two new board appointments were made: Sanjay Sachdev to the Company’s Board of Directors and Shamyl Malik, the Chief Executive Officer of the Company, as the Chairman of the Board. Over the course of this change, their former Chairman of the board, Mr. Hayde will continue to serve as a director of the company.
It doesn’t need much to understand why the company’s share price went up as a result of this decision.
Both Sanjay and Malik have left behind an amazing track record in asset management.
Take Mr. Sanjay for a start, who has previously been engaged in the asset management business for the past 25 years with a gearing towards emerging markets. This follows in his Fellowship in Residence at Harvard University as well as his role as the chairman at Zyfin Holdings, a leader in economic research and asset management in India which caters also to the MENA and ASEAN regions.
This record compares well with that of Mr. Malik who has also left behind a trail of success in his endeavors within the financial sector. He is also seen as a major player within LBCC given his history with the company and given its success in the recent years. He is expected to continue with his contribution to the company’s current strategic shift as they continue to work at harnessing the power of blockchain in their operations.
What Happens Now
In his first address, Mr. Sanjay spoke to his zeal in overseeing the evaluation and implementation of blockchain technology within the company saying:
“I share the Company’s optimism for the new and exciting developments in blockchain technology and look forward to working with Shamyl and the Board to realize its vision of becoming a leader in blockchain technology.”
With the company’s management focused on the implementation of the blockchain, it won’t take long before they have developed products to cater to the cryptocurrency market’s growing needs.
Thus far, the cryptocurrency market has grown by leaps with its market capitalization currently standing at just under $400 billion. With this trend, coupled with the fact that the company’s revenues as at the end of 2017 stood at $4.4 million, LBCC will soon be a formidable force. Key in their present role will be the implementation of their strategy so as to ensure that they meet the market’s objectives.
A lot is expected from LBCC. With the cryptocurrency space still being new to the world, their research and development, as well as operational objectives, need to be fine-tuned to ensure that they succeed. Despite their early adoption of the technology, the journey has just begun for them.
LBCC has done a lot to ensure that they become the dominant player within the cryptocurrency space. Their goals are now clearer and their management experienced, their only remaining role is the execution of their strategy, a thing which, going by the share price movements, they are expected to comfortably do by the market.
Disclosure: We have no position in LBCC and have not been compensated for this article.