Blockchain Stocks Weekly Update – August 24: American Express Confirmed Using Ripple’s Blockchain Solution

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American Express AXP Stock Chart August 2018

A major development hit the blockchain industry this week as the Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) partnered with Anquan, Deloitte and Nasdaq to develop Delivery versus Payment (DvP) capabilities for settlement of tokenized assets using blockchain. The collaboration will deploy blockchain technology to efficiently link up funds transfer and securities transfer, eliminating both buyers’ and sellers’ risk in the DvP process, said Tinku Gupta, the head of technology at SGX.

Meanwhile, the UK’s Financial Conduct Authority (FCA) has approved a cryptocurrency prepaid debit card from Wirex that allows its 800,000 users to convert cryptocurrency into pounds, euros, and dollars to allow everyday transactions.

However, the U.S. Securities and Exchange Commission (SEC) is still not giving in and allowing any bitcoin-based ETFs. Cointelegraph reported that so far, the SEC has rejected nine applications from three different applicants.

Based on our research, we found that the following blockchain stocks demonstrated notable price movements based on shifts in their company fundamentals.



American Express

Major credit card provider American Express (AXP) said they are using Ripple’s blockchain-based financial solution xCurrent. This is the first major financial company in the card industry that confirmed using blockchain to run part of their global transactions.

Colin O’Flaherty, a Vice President of American Express, said that Ripple offers instantaneous, point-to-point conversations between the sender and receiver of funds and offers a real opportunity to alleviate most of the issues faced by their customers.

Last November, American Express and Ripple made an agreement to use Ripple’s blockchain technology to facilitate and speed up cross-border payments between the US and UK.

American Express AXP Stock Chart August 2018

Earlier this week, the stock of American Express broke above the major resistance near $102.95 per share and climbed up to 105.75. The important thing to observe is how the ADX has touched the reading of 20 first time since June 2018.

Using blockchain technology from Ripple to settle cross-border payments of American Express will certainly increase efficiency and reduce cost. Consequently, it will have a positive effect on the bottom line of American Express.

Since an ADX reading above 20 indicates the start of a new trend, we expect the stock price to gain bullish momentum in the short-term.



MGT Capital Investments, Inc.

MGT Capital Investments, Inc. (MGTI) announced its Q2 2018 earnings report on August 15. During Q2, MGTI reported a $409,000 revenue from bitcoin mining, 5.41% higher compared to $388,000 in the same quarter last year. The press release said during Q2, including partnerships with investor-owned machines, the company produced 162 Bitcoins, a sizeable increase compared to 94 bitcoins in the first quarter of 2018.

Moreover, the COO of MGT Capital Investments, Inc., Stephen Schaeffer, bought 25,000 shares of the company on August 15 at the cost of $16,500. The insider buying also signaled that at least company executives are positive that the stock price will likely go up.

MGT Capital Investments MGTI Stock Chart August 2018

MGTI’s daily commodity channel index reading just reached 20 earlier on Friday. On the other hand, the support near $0.5800 per share seems to be holding pretty well as the price failed to break below it with several attempts in the last week.

Given the substantial increase in revenue and a bullish technical signal generated by the CCI indicator, we feel confident that MGTI’s stock will likely to test the resistance at around $0.6950 per share next. If we see the stock breaking above the resistance around $0.6950 per share, it might attract additional bullish momentum.



Bottom Line

We saw most altcoins to lose market cap this week, but the bitcoin showed amazing resilience and touched to resistance near 6825.00. This was a great news for bitcoin miners like MGT Capital Investments, Inc., as their revenue is directly correlated with the price of bitcoin.

Also, the news about a major financial institution like American Express embracing blockchain technology to facilitate cross-border payments prompted investors to re-think about other blockchain stocks.

The partnership between existing financial services companies and blockchain startups will be a win-win strategy because it will help traditional financial companies increase efficiency by cutting down transaction time and costs. By contrast, blockchain companies can open up new revenue channels by serving the financial industry as they lack the exposure to have a considerable market impact on a broader scale.

Disclaimer

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