Long Blockchain Corp (NASDAQ: LBCC)
Time for some clarity, folks. Just because a company uses the word “blockchain” in its name does not make the business a fraud, a deceptive entity, or even an opportunistic shareholder scam. It just isn’t so.
Thus, as I continue to read article after article that arbitrarily throws in the name Long Blockchain, Inc. as an example of a company that is trying to capitalize off of an industry buzzword, I have to scratch my head. Am I the only researcher that took some time to understand the strategy behind what LBCC is doing to emerge as a relevant player in what is already a multi-billion dollar industry?
I must be. Because the more I read, the more I am convinced that many writers that indiscriminately use the LBCC name to catch a headline have simply not done their research.
Here’s where LBCC Is Different
I put out a lengthy article on Tuesday showcasing the market that LBCC is on the verge of penetrating. Granted, investors can look at the former LBCC and make the case that LBCC has been stagnant. But, keep in mind that last year the LBCC business strategy was primarily targeting regional placements in the beverage industry. But, things have changed a lot since then, and neglecting the new positioning and lacking a forward-thinking perspective may prove to be a mistake. And, that’s what I pointed out.
Investors should never disregard history, but equally important, they should not neglect new beginning’s. Hence, ignoring the transition at LBCC might be a costly error, leading investors to miss out on a real opportunity to get a stake in what is now a multi-billion dollar cryptocurrency market. And, to those that doubt the sincerity of the strategic transformation are most likely not aware of the role that Stater Blockchain, Ltd. will play in the evolution of LBCC.
As I wrote, shareholders should expect LBCC to serve as the initial public vehicle for Stater Blockchain and its wholly-owned subsidiaries. The value that LBCC brings now is that they can facilitate, in a public market, the strategic initiatives to capitalize on a multi-billion dollar FX, forex and cryptocurrency industry, and quickly integrate into markets where Stater is already involved. Thus, when stories pop up like the one published by Barrons that list only a reference to Long Blockchain, Inc. without any real information about the company, it can skew an investor into believing that the company is somehow connected to its inflammatory headline. Even Goldman Sach’s pivoted from an frightening headline to nonchalantly use the LBCC name, and they too added no current information about what LBCC is in the process of bringing to market.
And, while it might not be the intent of the Barron’s or Goldman Sachs’ opinion to raise specific doubt about LBCC, neither makes an attempt to explain the LBCC business model. And, to me, that alone serves as an example of just how quickly LBCC’s name can get tossed into the mix of those, like Crypto Company (CRCW), despite having clear and distinguishing differences.
What I Find Compelling About LBCC
First off, investors need to acknowledge that there may be significant value from the relationship with Stater Blockchain Ltd., who is an established holding company with interests in financial services and blockchain technology. They currently manages brokerage assets including FCA-regulated (Financial Conduct Authority) institutional FX brokerage accounts through its wholly owned subsidiary, Stater Global Markets (SGM).
Additionally, LBCC is positioned to benefit from Stater Blockchain’s development of a unique and comprehensive cryptocurrency and blockchain enabled platform, that can bring to LBCC the potential to penetrate markets on a global and quickly scalable distributed ledger-technology application. Once completed, LBCC will be positioned to facilitate both transaction and settlement functions in the foreign exchange and soon-to-be-placed crypto markets. I don’t see a single reference to these developments in any other article or reference to LBCC.
Beyond that, SBL is already in the process of appointing bankers for a TSX, AIM, or NASDAQ listing in 2018 and is seeking an initial valuation of more than $250 million. The move can bring tremendous value to LBCC shareholders. On top of that, the combination of Stater and LBCC may be positioned to deliver disruptive trading platforms and blockchain-integrated technology to the markets quickly. In such a case, LBCC may become further positioned to take advantage of SBL’s plans to launch its own cryptocurrency, which will be traded and used in the Stater Blockchain network of regulated institutions and brokers as well as by active traders.
Yes, There Are Frauds, But Don’t Blame Everyone
No one is disputing that there may be potential for fraudulent representations in an emerging industry. I just don’t see it happening at LBCC.
Stater Global Markets will be a significant benefit to Long Blockchain and will be an integral partner in developing a market to take advantage of the more than one hundred billion dollar volume that SGM currently handles. In addition to those premiums, LBCC may benefit further from SGM’s vision to aggressively and actively identify opportunities to acquire dedicated FX, crypto and regulated brokers that already control a substantial book of trading clients.
The advantage offered in that endeavor is accretive to all. Joined companies will benefit from substantially lower trading costs than others in the industry, solidify their position to extend a proprietary blockchain technology to an existing user base, quicken the onboarding rate of clients, and will have the ability to create multi-chain platforms for functional and settlement purposes.
Bottom Line For Investors
Here’s my take. While LBCC may be entering an industry at the right time, their timing may just be a bit off. For those that have taken the time to look into the strategic vision of LBCC, there is enough information to lead investors toward an understanding of the long-term prospects at the company. As a stand-alone, perhaps LBCC would be nothing more than a name change in an emerging industry. But, LBCC is not an independent and has the backing of some dominant players in the FX and forex industry that hold the ability to take LBCC and their shareholders to the next level of opportunity.
Although LBCC may still find their name caught up in headlines and bylines, the truth of the matter is that investors should take more time understanding their investment opportunities and pay less attention to the banksters that tend to talk out of both sides of their mouth, especially about the cryptocurrency sector. Sometimes they are right, but most of the time they’re wrong. And as far as LBCC is concerned I believe that most institutional coverage has missed the point. LBCC is real. That’s my opinion and I’m sticking to it.