You know that something’s becoming mainstream when companies which seemingly have little to do with the latest trend start jumping in. And so today we bring you the story of Atari — which most of us know for their classic video games such as Pac-Man and Space Invaders — coming up with a crypto-related initiative of its own.
That’s right, the once-famous video gaming company will have its very own cryptocurrency called Atari Token.
Originally announced in December 2017, it was detailed in early February, when we’ve got to learn about the company’s plans to build a blockchain-based digital entertainment platform in partnership with Infinity Networks, in which Atari bought a 17.5 percent stake.
“Blockchain technology is poised to take a very important place in our environment and to transform, if not revolutionize, the current economic ecosystem, especially in the areas of the video game industry and online transactions,” Atari Chairman and CEO Frederic Chesnais said in the statement. “Our aim is to take strategic positions with a limited cash risk, in order to best create value with the assets and the Atari brand.”
Atari Token won’t be the only cryptocurrency created by the company; it will also launch the Pong Token in partnership with online casino-gaming company Pariplay Ltd.
The casino sites will offer Atari games, allowing players to gamble with cryptocurrencies, including the mentioned Pong Token, which will be dedicated to crypto casinos.
No word when either of these tokens will be launched but chances are this isn’t the last time we’re hearing about Atari’s blockchain ambitions.
The stock market loves when companies “go crypto”
And so shares of Atari have soared more than 60 percent since it announced its “crypto plans.”
We have seen something similar taking place when Eastman Kodak Co. unveiled its blockchain initiative, with its stock jumping 245 percent in two days after KODAKCoin was announced.
Perhaps more interesting is the move of the unprofitable iced-tea company formerly known as Long Island Iced Tea Corp. rebranding itself as Long Blockchain Corp. in December. The name change was enough for the shares to gain 183 percent in a single day.
That being said, the SEC has caught this trend, suggesting companies that adding the word “blockchain” to their name could face increased scrutiny from regulators.