Yep, you heard it right. Chanticleer Holdings, a parent company of nine regional Hooters Restaurant and various other chains, announced they will be using blockchain technology in regards to supporting their loyalty programs.
The company stated they will be using Mobivity for their rewards program, which they state, utilizes the same crypto infrastructure as Ripple, Ethereum, Bitcoin, and Litecoin. They want to place their rewards program in the hands of their customers, according to Michael Pruitt, chairman, president, and CEO of Chanticleer Holdings.
After making their big blockchain announcement, Chanticleer Holdings’ stock rose nearly 50% and was trading at nearly $4 a share, according to CNBC.
Chanticleer Holdings isn’t the only company who has uttered the word “blockchain” and seen a dramatic rise in their stock. An ice tea maker recently changed their name from Long Island Iced Tea to LongBlockchain and saw their stock surge 183 percent. Additionally, financial company, LongFin’s stock surged to 1,342 percent in December after buying a cryptocurrency with no revenue.
Bitcoin, Litecoin, and Ethereum prices aren’t the only thing that seems to rise when companies announce their use of blockchain technology. It seems Wall Street follows suit, even if the announcement comes with no real bones about it. Chanticleer Holdings announcement was vague and it is unclear exactly how specifically in regards to their rewards program that they will be using blockchain. There are still a lot of questions up in the air as to how their use of blockchain technology will benefit the end consumer.
As for now, it seems companies are taking advantage of the blockchain craze and using any opportunity to draft a press release with blockchain in the headline to help boost stock prices and relevancy in the market.
It will be interesting to see if this continues to play out in 2018.
