- Chinese language tea firm City Tea is investing in a Bitcoin biz.
- It is not the primary tea firm to do that.
- Its predecessor, Lengthy Island Iced Tea Corp, led to catastrophe.
The tea commerce was by no means actually about tea, anyway. And persevering with on this age-old custom of expedition and growth is City Tea, a publicly traded baked items and tea firm primarily based in Hunan, China, that’s entering into crypto mining. And it wouldn’t be the primary.
City Tea at present put in as Chief Working Officer Fendgan Zhou and as unbiased director Dr. Yunfei Track to “lead and help the Firm’s vital strategic growth in blockchain and cryptocurrency mining.”
Zhou comes from “blockchain knowledge middle corporations” in Hong Kong and Singapore, in keeping with a press launch, and Track is a scientist on the Chinese language Academy of Sciences with expertise in crypto mining and buying and selling. Zhou will lead City Tea’s “blockchain and marketing strategy,” in keeping with the agency.
City Tea’s CEO, Yi Lengthy, stated in a press release that his firm’s burgeoning crypto mining biz comes as “blockchain know-how and cryptocurrency are gaining widespread reputation.” Certainly, Bitcoin hit $50,000 for the primary time simply this week.
The crypto swap is an uncharacteristic transfer for City Tea. The corporate, based in 2011 and with a market cap of $45 million, has centered on tea because it offered off its “chemicals business” in April 2019. Since then, it’s purchased controlling stakes in a model administration firm and a tea provide chain administration firm, and opened shops in New York.
And now, out of nowhere, blockchain and Bitcoin mining.
“Going ahead,” stated Yi, “we count on City Tea will begin increasing into blockchain ecology, resembling cryptocurrency mining, blockchain mine building and upkeep, and cryptocurrency change operations.”
Daring utterances, however City Tea wouldn’t be the primary tea firm to trundle down this path. Lengthy Island Tea Corp, a lemonade and non-alcoholic iced-tea firm, rebranded as Lengthy Blockchain Corp in December 2017, simply as Bitcoin hit near $20,000.
Asserting the rebrand, Lengthy Blockchain Corp stated it was investing in “alternatives that leverage the advantages of blockchain know-how.
Across the time of the announcement, the corporate was desperately making an attempt to maintain its inventory listed on public buying and selling markets, dealing with off threats by Nasdaq. Shortly after its crypto announcement, its inventory pumped by 500%.
However because the crypto bubble popped, so did Lengthy Blockchain’s mining ambitions. By February 2018, when Bitcoin’s worth crashed, Lengthy Blockchain scrapped its plans to purchase crypto miners. By April, Nasdaq wiped it from merchants’ screens and Lengthy Blockchain needed to unload its tea enterprise.
Since then, the corporate has been investigated by the FBI and the SEC over allegations of insider buying and selling. The investigators thought that Lengthy Blockchain was a pump and dump scheme: pump a low-cap inventory to excessive heaven and money out earlier than the hype prepare hurtles towards hell.
Nonetheless, through the bull run, Lengthy Blockchain’s inventory has elevated tenfold.
Urban Tea (MYT) at present closed buying and selling up 15% following information of its Bitcoin plans.