With the recent incredible Bitcoin price rally people in the cryptocurrency community might not have noticed, but the innovation at the heart of it all, blockchain technology, appears to be taking over the world of traditional business. Almost every day another industry is said to have been disrupted or streamlined by new applications of Distributed Ledger Technology (DLT).
With so many announcements covering so many fields, from cargo insurance to milk supply chain management, the question arises: are all these companies really so eager to adopt DLT, or are they just riding the hype train with the hottest buzzword?
The latest example of the power of this brand in the business world is the case of On-Line plc (LSE AIM:ONL) – a London Stock Exchange-listed firm which has quadrupled its share price overnight just by adding ‘Blockchain’ to its name.
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With below-average returns and an underwhelming performance for its industry, On-Line’s stock price was stuck at around 14 pence sterling for most of the year. Following its announcement, the stock price jumped by about 400% to almost 60 pence.
“Blockchain technology and cryptocurrencies are a new and exciting area we have been working on for some time,” the Essex-based company said in a statement on Thursday. “We feel the time is right to re-name the company to reflect these developments, where we believe the future growth will be in our sector.”
The share price lost some ground after On-Line plc issued a clarification on Friday, warning investors that these blockchain-related developments are still at an early stage and actual market-ready products are not expected any time soon. As of the time of writing the price is around 38 pence.