There is a veritably deafening buzz around blockchain at the moment as it’s the technology du jour. And rightfully so, as it ticks a lot of boxes: it’s decentralized, anonymous, and immutable. It also promises security through truth and transparency.
Amid the excitement about it, brands are rushing to embrace the ledger technology. Upon announcing that they’re working with, or will soon incorporate, blockchain technologies, their stock price skyrockets.
The Blockchain Bounce Phenomenon
This is called blockchain bounce.
Don’t believe us? Take Overstock, for example, whose share price rose +200% post-announcement of a loyalty plan built on blockchain.
It also happened to Kodak recently, when it partnered with WENN Digital to launch a blockchain-powered image rights platform, called KODAKOne. Shares of Eastman Kodak’s stock surged more than 30% on the announcement, closing at $6.80.
As the New York Times noted, these bold gambles have had mixed reactions among investors: some are excited, others confused, with a majority curious about “wading into dubious business deals” in search of instant growth through blockchain bounce.
Are businesses that attach themselves to blockchain merely a fad? Or will utilizing blockchain to provide the building blocks for a company’s future have an Amazon-like effect, as Starbucks Chairman Howard Shultz predicts? Could the blockchain bounce make a difference for your company? Share your thoughts in the comments below!
Coming Soon: IEEE Introduction to Blockchain Technology – A Live, Virtual Event
It’s clear blockchain isn’t going away anytime soon. Which is why it’s in your business’ best interests to learn as much as possible, as soon as possible, about it. To make sense of the recent blockchain revolution, you’ve got to understand what a blockchain really is and what it’s capable of doing. The best place to start is with the upcoming IEEE Virtual Event: Introduction to Blockchain Technology. Registration is now open — we look forward to you joining us.