What happens when the austerely-named telecoms investment fund Stapleton Capital changes its name to Blockchain Worldwide?
Its shares jump 125%, of course. The tail truly is wagging the dog in the markets at the moment as a once obscure corner of the financial technology realm has seemingly become more important than the wider financial markets.
Exploiting a fad?
While only a penny stock, and therefore a highly speculative investment and prone to volatile price action at the best of times, Stapleton Capital has exploited the recent popularity of cryptocurrencies by renaming itself after the technology that supports bitcoin.
The bandwagon effect is at work here: the impulse to follow the actions of a crowd is a difficult one to deny, but it rarely makes the decision a good one.
A typical result of the bandwagon effect is the formation of market bubbles - if an asset price rises and there's volume and momentum behind it, it's difficult to resist the temptation to be a part of it, regardless of the foundations upon which that asset's value is based.
Look at the dotcom bubble of 2000. Companies - some of them formed overnight - with little more to offer than an interesting idea, were catapulted into the investment spotlight despite being essentially valueless: no assets, no intellectual property, little business expertise or experience.
The distributed ledger technology that is blockchain is more refined - but not much - yet. Experts are certain that blockchain technology has hundreds of potentially game-changing applications, but this is not yet proved.
Stapleton - or, rather, Blockchain Worldwide - was set up last year with the intention of purchasing or investing in telecoms businesses, but the company now says it has "identified a number of blockchain technology investment opportunities in recent months".
No value in a name
Can investors really afford to throw everything behind a name, just because of its association with what many believe to be a fad?
In December, soft drinks maker Long Island Iced Tea Corp announced its name was changing to Long Blockchain Corp as it shifted its focus towards the "exploration of investment in opportunities that leverage the benefits of blockchain technology".
Its shares jumped 500% prompting a warning from the US securities regulator against "potential scams".
Whether such moves are fads, scams or bubble forming, investors should remember the dangers of the bandwagon. Many have made a lot of money on the volatile moves in bitcoin in recent months - both on the way up and the way down.
But don't get caught out by bad timing, merely because you jumped on the bandwagon too late.