The blockchain technology has gained further traction this week as the Australian government said it will provide a grant to the young startup incorporating blockchain-based initiatives aimed at improving the travel and tourism industry in the country.
Moreover, institutional support for raising capitals continued as the Stuttgart Börse, Germany’s second largest stock exchange, said it is planning to start a platform for Initial Coin Offerings (ICOs). Its primary ICO platform will facilitate digital token issuance and make them tradable on in the secondary market.
Meanwhile, Switzerland based Union Bank of Switzerland (UBS) strategist Joni Teves told his clients that “Bitcoin is still too unstable and limited to become a viable means of payment or a mainstream asset class,” causing the BTCUSD pair to continue trading with a bearish note.
While the bearishness in bitcoin prompted major blockchain stocks backed by cryptocurrencies to trade lower this week, we found that the following two blockchain stocks demonstrated notable price movements based on shifts in their macro environment and company fundamentals.
BLOK Technologies Inc.
The Chief Executive Officer of BLOK Technologies Inc., Rob Dawson, said the obtaining the DTC eligibility will streamline the trading of its common stock in the United States. It will also enable efficient clearance and electronic settlement, which will accelerate the settlement of trades and the exchange of stock and cash for its shareholders in the U.S.
On August 1, 2018, BLOK Technologies Inc. also signed an MOU with Varipay Inc. to collaborate on the development of a payment gateway to be integrated into the Greenstream Network. It will help develop an integrated payment gateway solution for the legal Cannabis industry in Canada.
BLOK Technologies Inc.’s trading volume sharply jumped after the news regarding DTC eligibility was announced. Nonetheless, its stock continued to trade within a narrow Bollinger Bands despite the spike in trading volume.
However, we are optimistic about the stock making a clean break above the upper Bollinger band as the $0.05 per share level provided ample support over the last few weeks and the news about starting a payment gateway for legal Cannabis will definitely create a bullish momentum for the stock in the coming weeks. Hence, if BLOK Technologies Inc.’s stock breaks above the $0.10 per share level, it will certainly look forward to testing the next major resistance near the $0.35 per share.
Perth based Digitalx Ltd. (DCC) is a major player in Australian ICO advisory services. The company also specializes in blockchain consulting services and blockchain-related software development. On August 2, 2018, Digitalx Ltd.’s stock Price Index (PI) touched 0.53061 on The Quant Scale.
While a ratio over one represents an increase in the stock price over the six-month time frame, a ratio under one shows that the price has lowered over that defined time period. Given the downtrend line formed since January, it is clear that the stock is undervalued.
When Digitalx Ltd. was formed back in 2013, its primary goal was to mine bitcoin and the company raised $9 million. However, its strategy has shifted to move from having direct exposure to cryptocurrency pricing into consulting services over the past few years. As more companies are looking to issue ICOs instead of looking to get funding from private equity or stock markets, the demand for consulting services will likely only increase in the coming years and companies like Digitalx Ltd. are positioned to leverage this industry trend.
Digitalx Ltd.’s stock broke above the downtrend line at the end of June 2018 and over the last month, it climbed up and broke above the $0.16 per share level. Although the stock started a bearish retracement in the last two weeks, the Stochastic indicator shows a clear divergence on the daily chart.
Therefore, we believe Digitalx Ltd.’s stock has some good potential to resume the uptrend and if we see a clear break above the $0.16 per share once again, it can rapidly gain bullish momentum and shoot for the $0.25 per share level.
When we think about innovation and blockchain development, Germany is probably not the first country that comes to mind. However, with the initiative to start the ICO trading platform from Stuttgart Börse, Germany has opened the gate for a lot of companies to raise capital through this alternative finance channel.
The introduction of the ICO platform by a major stock exchange will only encourage various companies to look for consulting services from established blockchain advisory firms like Digitalx Ltd. and BLOK Technologies Inc. in the coming years, opening up new revenue sources that could push up their stock prices.
There aren’t many publicly traded blockchain consulting firms in the world with established track records and we see great potential for these two blockchain stocks to turn bullish in the long-run.