Investors who confuse Bluesky with the Toronto blockchain company send shares soaring 1,767% – DL News

What’s in a name?

For Bluesky Digital, the share price is up 1,767% in the past month.

In a case of brand awareness gone awry, the stock price of Toronto-based blockchain company Bluesky Digital rose in November as investors may have mistaken it for social media platform Bluesky.

Since Donald Trump’s election on November 5, Bluesky Digital’s share price has skyrocketed from $0.06 to $0.56, or about 833%.

The stock moves come amid a surge of users for the Bluesky platform.

One portfolio manager told Bloomberg that the stock price increase “may be due to name confusion” with the social media platform.

At the insistence of Canadian regulators, Bluesky Digital clarified in a filing that the measures were not related to corporate actions.

The blockchain company said that “management is not aware of any material change in the company’s operations that could explain the recent increase in market activity.”

Bluesky Digital’s stock rise coincided with its namesake’s vibrant appeal among social media users, especially former X users.

Coincidentally, Jack Dorsey, co-founder of Twitter, the former name for X, was also co-founder of Bluesky, the social media platform.

Market observers say internet users switching from X to Dorsey’s Bluesky are unhappy with the platform, as are some who are shying away from Elon Musk’s role in supporting Trump.

SpaceX and Tesla CEO Musk acquired Twitter in 2022 and changed the name to X the following year.

Musk’s critics say X has become a platform overrun by bots, scam ads and extreme content.

Bluesky’s user base has grown to more than 20 million – the platform had 6 million users three months ago. Much of that growth has occurred since Trump’s election victory earlier this month.

Some of the confusion for investors could lie in their shared decentralized technology goals.

Crypto-linked stocks have risen significantly since Trump’s election victory. MicroStrategy, the company with the largest Bitcoin balance sheet, has hit a new all-time share price high for the first time in two decades.

Adding to the confusion, the stock ticker for Bluesky Digital, which allows companies to adopt Web3 technology, is BTC. BTC is also the symbol for Bitcoin.

Meanwhile, social media platform Bluesky is developing a blockchain-based network for social media platforms.

The network aims to create a federated social media structure that allows users to create an endless stream of micro social media sites within Bluesky’s open source network.

Because it is a federated system, each micro social media site can be populated by existing Bluesky users without any additional steps.

Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and technology. If you would like to share story tips or information, please contact him at [email protected].