At least 340 UK companies related to cryptocurrencies or blockchain were dissolved or liquidated this year, compared to 139 in the previous year, according to a Sky News report.
More than 200 of those were incorporated with Companies House during 2017, when the value of Bitcoin surged 1,500% through to its peak in December.
“What you’ve had since the crash is a clean-out of the companies that don’t really have much and probably shouldn’t have been there in the first place,” Hugh Halford-Thompson, an early cryptocurrency enthusiast and founder of several blockchain companies, said.
“Last December, the interest in Bitcoin seemed divorced from any knowledge about the technology underpinning it – other than the name,” Sky News commented. “Shares in an unprofitable company called Long Island Iced Tea soared up to 289% when it renamed itself Long Blockchain – although that company was subsequently de-listed from the Nasdaq stock, and has now been issued with a subpoena by the US Securities and Exchange Commission. How times have changed.”
They have indeed, Sky News, they have indeed.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.