Blockchain Stocks Weekly Update – February 1: Wyoming Aims to Become the Crypto Valley

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BTCS-February-1-2019

PyrexCoin, a crypto startup, said they have invented a new cryptocurrency where transactions will be linkable, and as a result, payments will be untraceable. The company said it used three separate, but interchangeable blockchain payment methods to make transactions totally anonymous. PyrexCoin’s white paper said the company is working towards becoming the merging point of privacy and transparency.

Russian news agency TASS reported that the Chairman of Russia’s Upper House of Parliament argued lawmakers to work on the digital economy bill that will help regulate cryptocurrencies and digital assets in the country.

Wyoming, the least populous state in the US, has introduced a number of bills in January after the incoming Governor Mark Gordon made the speech on January 7, 2019. The incoming Governor wants to reposition the state as a “Crypto Valley,” he said during the speech. Consequently, on January 17, the state introduced a bill that permitted the tokenization of stocks. Two days later, the state introduced another bill that defined virtual currencies as money.

Meanwhile, Iran, a country that is facing widespread sanctions, is in talks with a number of countries to conduct cross border transactions using cryptocurrencies, said a prominent Iranian newspaper called the Tehran Times.

Bloomberg reported that crypto venture funds exceeded new investments compared to hedge funds in the crypto industry for the first time. Also, we have learned this week that Polychain Capital, an investment firm specializing in cryptocurrency protocols, and companies, just raised $175 million for a fund with a seven-year lockup period.

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

BTCS Inc

BTCS Inc (BTCS) is involved in the development of applications related to blockchain databases and digital currencies. On January 30, 2019, Kenneth Research, a market research firm, said that BTCS Inc has made it into their list of top key players of the global bitcoin technology market. Some of the other notable companies mentioned in the research report are Coinbase and Bitpay.

BTCS-February-1-2019

Although BTCS Inc’s stock price broke above the downtrend line by the end of December, over the last month, it mostly traded sideways and found support near the $0.015 per share level.

After the research report from Kenneth Research listed BTCS Inc in the same league as Coinbase and Bitpay, its Commodity Channel Index (CCI) turned above -100 level, indicating the development of ample bullish momentum.

Since the stock has been trading close to the major support level around $0.015 per share, we believe this positive news will help push the stock towards the next major resistance around $0.028 per share in the short-term. Hence, blockchain investors may want to increase their exposure to BTCS Inc at current market price.

HashChain Technology

Vancouver, Canada based HashChain Technology (KASH) is involved in mining cryptocurrencies based in two low-cost data centers in North America. On January 28, 2019, HashChain Technology announced its fiscal Q1 2019 financial results. The press release cited Patrick Gray, the CEO of HashChain, saying the company has taken steps to focus solely on the mining operation and cut back on G&A expenses going forward.

Although HashChain Technology made substantial losses in the last quarter, keep in mind that it’s G&A expenses were $1,312,899 and if the company can reduce this large expense, they might be able to reach breakeven. Also, the bearish cryptocurrency market was one of the key reasons they made the loss of $3,341,785 in the last quarter.

KASH-February-1-2019

From a technical point of view, HashChain Technology’s stock is trading above the newly formed uptrend line. However, it needs to break above the key resistance around $0.05 per share before we can be certain about its long-term bullishness.

Given there its RSI indicator has formed a 12-degree uptrend line, there is a possibility that the blockchain stock will test the $0.05 per share level in the near future. If this resistance is broken, it will open up the possibility of a bullish run towards the $0.09 per share level over the next few months.

Bottom Line

The bearish cryptocurrency market has taken a lot of mining companies out of business and put a question mark on the long-term viability of the industry. As bitcoin continued to trade near the $3,500 level, there is a lack of optimism for blockchain stocks who are solely involved in the business of mining cryptocurrencies at the moment.

However, even in a bear market, there are always some great deals to be found and the two blockchain stocks we discussed this week offers ample opportunity for crypto investors.

Disclaimer

Blockchain Stocks has not been paid to mention any stock /company within this article nor do we own any stock in any company mentioned in this article. More information about our full disclosure can be found here – Full Disclaimer.