Blockchain Stocks Weekly Update – February 8: SEC Commissioner Remains Optimistic About Bitcoin Backed ETF

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DataMetrex AI Ltd (DM) February 2019

There were some major developments in the crypto industry as the global investment bank Credit Suisse and Portuguese bank Banco Best announced to have conducted an end-to-end fund transaction using blockchain. The cross-border distribution of an investment fund over blockchain proved for the first time that the new model can be more scalable and at the same time be efficient.

The crypto industry lamented for a while that the US authorities will likely never approve a bitcoin backed ETF. However, the Securities and Exchange Commission (SEC) commissioner Robert J. Jackson Jr. said in a leaked interview that the SEC will eventually approve such ETF in the future.

As more governments around the world are opening up to embrace blockchain-based applications, the Italian House of Representatives approved a bill on February 7, 2019, defining distributed ledger technologies (DLT) such as blockchain. In fact, Maria Laura Mantovani, a member of the Italian Parliament, commented that Italy might be able to use blockchain to conduct online voting in the near future.

Forbes listed a total of seven blockchain startups in their most innovative fintech list and quoted Ripple to be a game changer. Ripple’s payment network is currently worth $5 billion, and it has gained over 200 clients for its RippleNet.

Also, we learned that mobile-based bitcoin wallet app Arba said in a press release this week that its clients invest in shares and exchange-traded funds (ETFs) using Bitcoin with a new feature that went live recently.

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

360 Blockchain Inc.

360 Blockchain Inc. (BKLLF) is a major publicly traded company in Canada and it is involved in investing in early-stage opportunities that offer outstanding talent, teams, and technology. 360 Blockchain Inc.’s stock remained mostly range-bound over the last few months as the price of bitcoin continued to trade with a bearish note and other major altcoins lost momentum in the market.

However, since it announced to undertake a non-brokered private placement of up to $1,000,000 by way of units at $0.03 in January, 360 Blockchain Inc.’s stock price showed notable movements.

360 Blockchain Inc. (BKLLF) February 2019

As the bitcoin turned bullish on February 8, 2019, going from $3430 to $3730, 360 Blockchain Inc.’s stock mimicked the bullishness and fast approaching the resistance level near the $0.036 per share level.

Although 360 Blockchain Inc.’s stock has penetrated above the $0.036 level several times in the past few weeks, it has so far failed to close above this major resistance.

Given that the proceeds from the placement will be used for general working capital and to fund future investments of the company, we believe it will help 360 Blockchain Inc. to grow and the correlation with the bitcoin’s bullish momentum will offer a great opportunity for investors to increase their exposure to the company above the $0.036 per share level.

DataMetrex AI Ltd

DataMetrex AI Ltd (DM) is a technology-focused company with exposure to Artificial Intelligence and Machine Learning through its wholly owned subsidiaries, Nexalogy and Canntop AI. Back in December 2018, DataMetrex AI Ltd signed a licensing and reseller agreement with Imex Systems Inc. The initial agreement allowed Imex to use the Canntop platform of Datametrex in exchange for issuing CDN $180,000 of IMEX shares.

However, on February 7, 2019, both companies said in a press release that both parties have mutually agreed not to proceed.

DataMetrex AI Ltd (DM) February 2019

DataMetrex AI Ltd’s stock remained bearish since November 2018 and it has formed a well-respected downtrend line over the last several months. At the time of announcing not to go ahead with the deal with IMEX, its stock was testing the support near $0.035 per share.

By dissolving the agreement, DataMetrex AI Ltd will lose the potential revenue stream and it will have an adverse effect on the book value of the company. Hence, if we see the stock price breaking below the support level near $0.035 per share, it might trigger a sustained downtrend. Hence, short-term investors should trade DataMetrex AI Ltd’s stock with caution in the next few weeks and wait to see if the support level holds the price level for now before making any new investment decisions.

Bottom Line

There will always be temporary setbacks. For example, how the deal between IMEX and DataMetrex AI Ltd fell apart this week.

While these temporary setbacks are part of the life being an investor in an emerging industry, it gives us an opportunity to analyze these companies with traditional metrics instead of treating them based on hype and hysteria.

However, as more regulatory authorities are approving legislation to integrate blockchain technology and companies involved in the sector in the mainstream financial industry, the future of some of the blockchain stocks looks promising.

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.