Blockchain Stocks Weekly Update – September 7: Supreme Court of China Accepts Blockchain Contract as Binding Evidence

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Discover Financial Services Stock DFS and Blockchain Technology September 2018

Bitcoin’s price fluctuation continued this week and the cryptocurrency market lost around $40 billion worth of market cap in less than a day on September 6, as the BTC/USD plummeted to $6,300. However, as far as blockchain stocks and the fate of the overall technology goes, it turned out to be a good week.

In a landmark decision, the Supreme Court of China ruled that any evidence that was authenticated with blockchain technology will be considered as binding if there is any legal dispute down the line. With the recognition of blockchain based smart contracts from a court from a major country, the potential of using blockchain to disrupt legal matters became more prominent.

Meanwhile, research firm YouGov Omnibus said 79% of Americans are familiar with cryptocurrencies and 48% of Millennials are open to using cryptocurrency primarily. However, the report also said that “a near-equal amount (34%) of people do not think cryptocurrencies will become widely accepted within 10 years’ time.”

Over the past year, we have seen a number of national governments becoming interested in using blockchain technology and some even went as far as starting their own digital fiat currencies. To continue that trend, the President of Uzbekistan, Shavkat Mirziyoyev, has ordered to start a blockchain development fund called Digital Trust. The aim of the initiative is to integrate blockchain into certain aspects of public administration in the country.

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

Discover Financial Services

On September 6, 2018, we learned that a major Wall Street wealth management firm, Glen Harbor Capital Management LLC, has increased its stake in Discover Financial Services (DFS) by 61.3% during the second quarter of 2018.

Discover Financial Services Stock DFS and Blockchain Technology September 2018

In their recent disclosure to the Securities and Exchange Commission (SEC), Glen Harbor Capital Management LLC mentioned that it owned around 247,282 shares of Discover Financial Services and during Q2’18 they acquired an additional 93,942 shares of the company.

While Discover Financial Services is mostly known for offering the Discover credit card, interest in the company have increased since April when it joined the Blockchain Trade Group to assist the group’s mission of blockchain education and advocacy.

From a technical perspective, the news about a major fund management firm increasing their stake in the company had a significant impact this week as the stock continued to trade near the resistance around the $78.5 per share level. Although the stock mostly remained range-bound over the last few weeks, a clear breakout above this resistance can certainly help the blockchain stock start an uptrend.

BLOCKStrain Technology Corp

With the legalization of cannabis in Canada, consumers are facing a unique problem. How to verify if the product they are buying is authentic and have the level of quality that they paid for? BLOCKStrain Technology Corp (DNAX) is helping the industry by developing a decentralized platform that that verifies the quality and unique genome of cannabis products. At the same time, it helps cannabis producers to deal with the Canadian government’s registration system.

BLOCKStrain Technology Corp DNAX Stock and Blockchain Teshcnology September 7 2018

What BLOCKStrain Technology Corp has developed is basically a supply management platform. A few days ago, an OLM Ottawa Life magazine published an article that outlined how the platform works. According to the author, Jonathan Marshall, it works by “testing individual strains of cannabis and then digitizing the genetic information into a blockchain. Therefore, by using the platform, products associated with the blockchain ledger can be validated without physically having to be present.

Since the start of July, BLOCKStrain Technology Corp’s stock has traded mostly sideways and traded below the major resistance around $0.285 per share level. However, as the company is gaining public interest, cannabis growers will soon realize that instead of having to trust another company, they can just trust the technology behind the blockchain to market their products more effectively.

Hence, if we see investors appreciating the underlying potential of BLOCKStrain Technology Corp and the stock price breaks above the resistance near $0.285 per share, the stock can start gaining some bullish momentum.

Bottom Line

The decision of China’s Supreme Court to accept blockchain based evidence as a legal document certainly gave the industry a leg up this week. However, the most encouraging fact remained that almost half of the American young generation, the Millennials, are positive about primarily using a cryptocurrency in their daily transactions.

Also, we saw how BLOCKStrain Technology is using this innovative ledger tool to revolutionize an emerging industry in Canada. At the same time, well established institutional wealth management firms like Glen Harbor Capital Management LLC gave the blockchain industry hope that there will be no shortage of capital for blockchain companies if they continue to disrupt the industry with useful innovations.