Beverage Turned Bitcoin Mining Company Long Blockchain Moves into Loyalty Market
Shapeshifting former drinks manufacturer Long Blockchain has now formed a subsidiary for the loyalty industry.
Long Blockchain Corp., the drinks manufacturer turned blockchain startup, announced that it had again changed its line of business and will now also focus on loyalty schemes, local news outlet Long Island Business News reported July 31.
The New York-based company, which saw major stock price volatility after it unexpectedly rebranded to Long Blockchain from ‘Long Island Iced Tea’ in January, said it would similarly leverage so-called “distributed ledger technology” (DLT) in its new format.
Operations will be run via a new subsidiary dubbed Stran Loyalty Group, while Long’s CEO has also stepped down.
“Consumer brands and corporations realize that loyal customers not only purchase more goods but that they also purchase more often,” new CEO Andy Shape said in a press release:
“Creating stronger loyalty with customers who are engaged in loyalty programs through advancements in technology is the key to future growth and massive scalability.”
Since the original blockchain pivot, the company’s fortunes have been mixed. As Cointelegraph previously reported, Nasdaq formally removed Long Blockchain from its listings in April for low market capitalization.
“The Company’s goal is to use the initial loyalty business as a catalyst to implement disruptive technology solutions, including distributed ledger technology, into the loyalty industry while realizing immediate revenue and credibility from traditional loyalty contracts,” the press release continues, adding the somewhat curious proviso:
“There can be no assurance that the Company will be successful in developing such technology, or in profitably commercializing it, if developed.”
Long Blockchain’s entry into the loyalty market is not without its competitors, with various extant firms also seeking to streamline the fragmented loyalty industry using blockchain technology.