The blockchain industry saw an extensive list of Government initiatives around the world to create new regulations that will further help legitimize the use of crypto assets in the everyday life of consumers. The Bangkok Post reported on January 17, that the Stock Exchange of Thailand (SET) is lobbying the Thai Finance Ministry to obtain a digital asset operating license to start an authorized digital asset exchange.
Thailand’s neighboring country Malaysia is also considering to introduce a set of new regulations to classify cryptocurrencies, tokens and crypto assets as securities. Once implemented, it will mean that these digital assets will come under the jurisdiction of the Malaysian Securities Commission. While the law will legitimize cryptocurrency exchanges, it will also mean that any person operating an unauthorized initial coin offering (ICO) or digital asset exchange will face a 10-year jail and RM10mil fine.
On January 16, 2019, Deloitte, one of the Big Four audit and consulting firms, published its Tech Trends 2019 and featured blockchain as a disrupting technology. “Blockchain is to trust what the web was to communication,” said Deloitte in the report and added that it transforms “not only business but the way humans transact and engage.” The report from Deloitte highlighted the importance of the industry while short-term investors are way too focused on the price of bitcoin that kept trading sideways for the last several weeks.
Meanwhile, the bitcoin and other altcoins came under pressure after MIT and Stanford researchers in the U.S. published a press release saying they are getting funded by a Swiss nonprofit called “Distributed Technologies Research (DTR).” The aim of DTR is to create a globally scalable and decentralized payment network called “Unit-e” that will help address some of the capacity limitations of currently circulated cryptocurrencies.
Based on our research, we found that the following blockchain stocks demonstrated notable price movements based on shifts in their company fundamentals.
Coinsilium Group Ltd
London based Coinsilium Group Ltd (CINGF) is a venture builder, investor, and advisor, supporting early-stage blockchain technology companies and the digital token economy. On January 14, 2019, it published a report titled “Strategic Business Update” that highlighted record levels of institutional investment in blockchain companies over the last 12 months.
Prior to publishing the strategic business update report, Coinsilium Group Ltd was trading with a bearish note. However, over the last 24-hour period, it turned bullish and broke above the downtrend line in the process.
The report said that all of the investee firms of Coinsilium Group Ltd had reported increased user-bases and “achieved growth towards their strategic objectives.” Given the importance of the news and positive claims, we believe it will likely fuel a sustained bullish momentum of the stock price in the next couple of weeks.
Hence, if we see Coinsilium Group Ltd’s stock price breaking above the resistance near $0.07 per share, it will offer investors a great opportunity to increase exposure to the company.
Fintech Select Ltd
Fintech Select Ltd (FTEC) is a Toronto based Fintech company that provides robust and disruptive Pre-Paid Card programs, mobile banking solutions and Cryptocurrency technologies to some of the leading financial institutions in the world.
Earlier in January, Fintech Select Ltd announced that it has signed a definitive agreement with Mswipe Technologies to acquire an online payment and e-wallet platform that will complement and easily integrate with their existing core payment platforms.
Fintech Select Ltd’s stock price remained highly bearish in the second half of 2018 and it formed a well-respected downtrend line. After the news regarding the acquisition of Mswipe Technologies, the stock price broke above the downtrend line. However, it soon found resistance near $0.075 per share.
Over the last week, the stock price fell below the 50% Fibonacci line and currently, it is trading close to the pivot zone near $0.05 per share. We believe the long-term prospect of Fintech Select Ltd has improved enough to warrant an uptrend and increasing exposure to the company near this Fibonacci retracement level could be a great investment opportunity for long-term investors.
The fate of BTC/USD remains unknown, and the most popular cryptocurrency on the face of the earth has lost momentum by the end of 2018. However, the Fintech startups and governments are gearing up to support a new era of transaction mechanism based on the decentralized database technology.
The two blockchain stocks we discussed this week offers immense potential to disrupt the financial industry and given the broader macro level bullish momentum in the industry, it offers immense value at current market prices.
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.