Blockchain Stocks Weekly Update – February 15: JP Morgan to Introduce First Bank Backed Cryptocurrency

Riot Blockchain Inc (RIOT) February 2019

The industry as anticipating it for a while that the banking industry will try to leverage the decentralized database technology and this week, there were some major developments in this area.

One of the major banks in the US, JP Morgan, announced the first bank backed cryptocurrency to transform payments business. However, the CEO of Ripple, Brad Garlinghouse, criticized the move in a tweet saying “introducing a closed network today is like launching AOL after Netscape’s IPO.” His views are in line with his previous argument that such privately owned crypto assets will create a fragmented currency landscape than what we have today.

One of the smallest European countries, Liechtensteinische’s official postal service, Post AG, said it is planning to offer a cryptocurrency exchange service at the physical post office. Customers can exchange their fiat currencies for bitcoin, said Post AG. The service will gradually extend to throughout the country and enable citizens to buy and sell crypto assets.

BusinessWire reported that major Canadian exchange Coinsquare has acquired zero-fee based global decentralized crypto platform StellarX. Commenting on the move, Coinsquare CEO Cole Diamond said, “Stellar is the fastest payment network in the world and we see enormous potential to create industry-leading services on StellarX to further broader adoption.”

Meanwhile, Chipmaker Intel has launched a new commercial blockchain package that is developed using the Hyperledger Fabric. Hyperledger Fabric will provide a foundation for developing applications and solutions with a modular architecture, said Intel in the published document. Also, it will enable components, such as consensus and membership services, to be plug-and-play.

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

eXeBlock Technology Corp

eXeBlock Technology Corp (XBLK) is involved in the development of decentralized applications (DApps) on the blockchain. Its DApps provide scalable, cost-effective, easy to use blockchain solutions for businesses and markets globally.

This week, we have learned from a report from McMonitor that the shorts for eXeBlock Technology Corp went up by 50%. Since the report was published, eXeBlock Technology Corp’s stock has traded down to test the support near $0.03 per share.

eXeBlock Technology Corp (XBLK) February 2019

Over the last few months, eXeBlock Technology Corp stocks remained bearish. But since November 2018, it mostly traded sideways between $0.03 to $0.07 per share. From a technical point of view, we see more bearishness in the coming weeks as the Stochastics indicator has only a -6-degree slope compared to -31-degree slope of the price action. It signifies a divergence in the daily time frame.

However, we would recommend that blockchain stock investors wait for the support near $0.03 per share to be broken before reducing exposure to eXeBlock Technology Corp‘s stocks.

Riot Blockchain Inc

Riot Blockchain Inc (RIOT) primarily focuses on building, supporting and operating Blockchain technologies. Its main aim is to become a major contributor to disruptive blockchain technology ecosystem that is revolutionizing transaction.

While Riot Blockchain Inc’s stock price remained bearish over the last several months, recent price action and underlying fundamentals suggest that there could be a potential reversal in the making.

Riot Blockchain Inc (RIOT) February 2019

Earlier in February, Riot Blockchain Inc announced a leadership change and named Jeff McGonegal as the Chief Executive Officer. Since the announcement was made, the stock price experienced considerable bullish momentum.

Earlier on February 15, Kyma News reported that short sellers are also getting bullish about Riot Blockchain Inc, which we believe, has prompted the stock to break above the $2.15 per share level in the last week.

Given the change in management has created ample bullish momentum a key resistance level, there is a good possibility that Riot Blockchain Inc’s stock will continue to appreciate in the coming week and soon test the next major resistance, which is located near the $3.00 per share level. Hence, blockchain stock investors may want to consider increasing their exposure to Riot Blockchain Inc in the short-term at the current market price.

Bottom Line

The news from JP Morgan to launch its own cryptocurrency has created a mixed reaction from industry experts because the whole concept of bitcoin and other altcoins is that it is decentralized. A privately-owned bank-backed cryptocurrency may help investors gain confidence in the asset class, but it may have broader economic implications.

Back when there was no central bank, each private bank use to issue its own currency that created chaos in the financial sector. Analysts and industry experts are concerned that having bank issued cryptocurrency might create a somewhat similar situation in the market if mainstream investors start to use them as an alternative to fiat currency issued by the Federal Reserve.

Of course, it is too early to predict how this new development will unfold and what will be some of the unintended consequences, but for now, we should embrace the fact that major Wall Street banks are considering entering the industry.


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.