Blockchain stocks got a boost from the sudden influx of bullish interest in major cryptocurrencies this week, with Ethereum leading the rebound with near 20% gains that pushed the ETHUSD above 200.0. As the price of the Ethereum started soaring, it further elevated the various blockchain stocks based on the platform. By Friday, the BTCUSD also trended higher and traded above the 6,500 level as the news broke out that one of the largest banking giants in the U.S., Morgan Stanley, is planning to start offering bitcoin swap trading for its clients.
In fact, Morgan Stanley’s plan reaffirmed the notion that major Wall Street players will soon embrace the blockchain based assets and we might soon start to see sophisticated derivatives tied to these assets.
Meanwhile, a white paper from the World Economic Forum (WEF) said that distributed ledger technology like blockchain will help facilitate over $1 trillion in new trade over the next decade. Trade finance is one area that continued to use legacy technology over the last few decades and a nudge towards blockchain based ledger can help the industry to generate new trade volumes in the near future.
On a lighter note, the South China Morning Post reported that Hong-Kong based Chow Tai Fook Jewelry Group revealed plans to use a blockchain based platform to track diamonds. Such novel initiative demonstrated the versatility of the core blockchain technology that can have practical application in virtually any industry.
Based on our research, we found that the following blockchain stocks demonstrated notable price movements based on shifts in their company fundamentals.
Global Arena Holding Inc
HTF Market Intelligence one of the leading company that provides syndicated market research & industry analysis published its Global Blockchain Market Research report and mentioned the potential of Global Arena Holding Inc (GAHC) in the blockchain industry along with how larger IT companies like IBM and Microsoft are becoming interested in the technology.
Global Arena Holding Inc’s stock crossed above the key pivot zone around $0.0038 per share soon after the HTF report was published.
A few weeks ago, Global Arena Holding Inc released its Q2 2018 financial results that reported a $0.01 earnings per share. However, long before the Q2 results came in, earlier in July, the stock effectively ended the downturn and broke above the downtrend line. Since the middle of July, it has traded mostly sideways where the $0.0038 per share level acted as a major support.
As the stock traded at $0.0039 per share after the HTF report mentioned about Global Arena Holding Inc, we believe investors are becoming interested in the company’s potential to revolutionize the election process by using the blockchain technology through its subsidiary Global Election Services. Hence, investors might want to consider increasing their exposure to this blockchain stock as the current price level offers a great entry point for a long-term play.
eXeBlock Technology Corp
eXeBlock Technology Corp (XBLK) is engaged in building self-contained decentralized applications known as DApp (Decentralized Applications) using the blockchain technology. The DApps created by eXeBlock are highly accurate, transparent, and offer lower operational cost compared to existing legacy solutions. Moreover, its open source “pay per use” model provides a constant revenue stream enhanced by third party developers.
eXeBlock Technology Corp is currently developing several DApp and two of its most prominent products are called 50/50 Labs and Freedom Ledger. Their Freedom Ledger DApp will facilitate transactions for users that do not hold a cryptocurrency account. Hence, it will enable consumers with traditional currency accounts to utilize various DApps and help expand consumer base for blockchain based DApps.
Since eXeBlock Technology Corp’s DApp products are being developed with scalability based on the Graphene Blockchain Framework, we believe these will attract huge interest from investors.
The stock of eXeBlock Technology Corp remained bearish and formed a downtrend line over the last few months. However, earlier on September 14, it crossed above the downtrend line and traded at $0.0725 per share. Moreover, the Commodity Channel Index (CCI) reading jumped above the -100 level, indicating a potential reversal. Given the technical prospects and the long-term viability of eXeBlock Technology Corp’s product pipeline, the stock appears to be offering a unique entry opportunity to investors.
The two blockchain stocks we reviewed are positioned to leverage the strong bullish recovery in the cryptocurrencies this week, including bitcoin and Ethereum. Moreover, the favorable report from the World Economic Forum about the overall industry growth potential fueled the speculation about a sustained bullish trajectory of companies that are involved in delivering innovative products based on the underlying blockchain technology.
At this point, the blockchain stocks are appearing to be offering a great value proposition as the industry is on the verge of receiving a lot of interest from major Wall Street firms. If Morgan Stanley’s plan to start offering bitcoin swap trading catches on, we will likely see more traditional financial companies getting interested in offering financial products aimed at crypto assets in the coming months.