Skip to main content
Home

Main navigation

  • Top stories
  • Health
  • Crime
  • Politics
  • Business
  • Tech
  • Culture
  • Sports
  • Weird
  • 1-1-2
Image
Bitcoin
Physical representation of virtual currency, Bitcoin. Oct. 10, 2013 (photo: Antana / Flickr via Compfight) - Credit: Physical representation of virtual currency, Bitcoin. Oct. 10, 2013 (photo: Antana / Flickr via Compfight)
Business
Innovation
cryptocurrency
Bitcoin
blockchain
VEB
dotcom bubble
Tuesday, 16 January 2018 - 15:50
Share this:
  • facebook
  • twitter
  • linkedin
  • whatsapp
  • reddit

Blockchain hype like dotcom bubble, warns Dutch investors group

Dutch investors association VEB warns investors against companies that are using the cryptocurrency hype to attract investors and boost share prices by adding "bitcoin" or "blockchain" to their name. According to the association, this is very reminiscent of the dotcom bubble, when companies added '.com' to their names to suddenly increase their share prices without actually changing the company fundamentally, accountant.nl reports.

VEB used American beverage manufacturer Long Island Iced Tea as an example. Last month the company announced that it is dropping soft drinks manufacture and will focus on blockchain technology, changing its name to Long Blockchain. "That change in name alone and the promise to seek opportunities in blockchain caused the stock price to explode. The market value went from less than $25 million to nearly $100 million", the association said, according to the magazine.

And Long Blockchain is by no means an exception. Small-scale technology investor Longfin saw its share price increase by 2 thousand percent just days after announcing its acquisition of Ziddu.com, according to VEB. "Ziddu.com focuses on corporate finance through digital currencies, but does not even have a fully working website yet."

According to VEB, cryptocurrencies are a hype, but blockchain - the underlying technology that makes cryptocurrency possible - is something worth retaining. "If one thing is missing on the internet it's trust, and blockchain could provide that trust.

Follow us:

Latest stories

  • Kökcü leaves Feyenoord for Benfica; transfer fee of about €30 million
  • After strike: VDL NedCar and trade unions again in talks about social plan
  • AED battery disappears, woman who needed resuscitation dies
  • Sharp rise in European gas prices, partly due to warm weather
  • Tax authorities won't start collecting debts caused by pandemic until late August
  • ANWB receives more breakdown reports due to warm weather; up to 4,300 cases

Top stories

  • Major fire in Ter Aar, now under control
  • Tropical temperatures expected in the Netherlands this weekend; free sunscreen at beaches
  • Train traffic in Amsterdam running again after temporary halt due to ProRail's relocation
  • All overnight trains cancelled near Amsterdam; Schedule should resume Saturday morning
  • Many households see monthly energy bills fall by 14 percent
  • EU asylum deal a "building block" to reduce influx to Netherlands, State Sec. says

© 2012-2023, NL Times, All rights reserved.

Footer menu

  • Privacy
  • Contact
  • Partner content