cryptocurrencies

Future FinTech Jumps, Then Falls After Touting Blockchain Ties

Future FinTech Group Inc.’s rebranding efforts during this past winter’s Bitcoin craze appear to be losing their juice.

Shares of the Xi’an, China-based firm, formerly known as SkyPeople Fruit Juice Inc., jumped as much as 27 percent Friday after the company announced a “strategic transformation plan” involving blockchain. The rally didn’t last long. The stock quickly lost more than half of the gain and was up 6.5 percent to $2.29 as 12:15 p.m. in New York.

The market’s enthusiasm may have been tempered after investors realized that the firm had already discussed plans for a “strategic transformation” -- and blockchain -- in the past. The shares soared to as high as $8 in December on the news.

“Based on our existing blockchain business, our transformation plan will also aim to create a digital asset application incubator ‘Chain World- Digital Space,’ which provides business incubation and acceleration services including projects finance, technology, talent, and marketing services for up-and-coming blockchain companies,” Future FinTech said in a statement Friday.

The firm reported $562,146 of revenue in the first quarter, a majority of which came from beverage products.

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