Blockchain Stocks Weekly Update – December 7: The SEC Delays Decision About Bitcoin ETFs


HyperBlock (HYPR) December 2018

The ongoing turbulence in the U.S. stock market got reflected in the cryptocurrencies this week as bitcoin fell to a fresh low of $3368 and Ethereum dipped to $81.

However, Morgan Creek Digital, an institutional fund manager that chiefly focuses on cryptocurrencies and other relevant digital assets said they want to bet $1 million that their portfolio of assets will outperform the S&P 500 during the next decade.

Hester Peirce, a commissioner of the United States Securities and Exchange Commission (SEC) asked investors not to hold their breath while waiting for a Bitcoin exchange-traded fund (ETF). Meanwhile, the SEC has further delayed its decision about a bitcoin-based ETF till February 2019.

Despite the recent turbulence in the crypto markets, Netcoins, a crypto company that enables thousands of retailers to function as virtual ATM, said it has continued to grow the top line transactional revenue numbers. Netcoins set a new record for its largest single transaction in November that amounted CAD$4.5 million.

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

HyperBlock

HyperBlock Inc. (HYPR) offers hosted mining and hash rate sales as well as proprietary custodial vault solutions. The business model of HyperBlock is to help people and businesses create, safeguard, manage and grow crypto assets.

Last week, HyperBlock launched a new insured crypto custodial product called HyperVault. The press release said that it has signed an agreement with a Caribbean-based bank to secure crypto assets through HyperVault, its proprietary, insured crypto custodial service.

“Although it’s been a challenging road that required focus and significant investment, HyperVault is a potential game-changer for HyperBlock,” said Sean Walsh, the CEO of HyperBlock.

HyperBlock also announced that it has earned $5 million in revenue during Q3 2018.

HyperBlock (HYPR) December 2018

After the news about HyperBlock’s Q3 revenue was published along with the new custodian service, its stock broke above the long-term downtrend line. Prior to that, it found a strong support near the $0.04 per share level.

Given the recent bullish momentum and strong fundamental developments in the company, there is a strong possibility that the stock price will continue to move up in the coming days and try to test the next resistance around $0.125 per share soon. Also, the stiff uptrend line in the Commodity Channel Index suggests a prolonged bullishness on the daily chart. Hence, as long as the stock price is trading above $0.04 per share level, investors should feel confident about increasing their exposure.

LeoNovus Inc

With a team of experts in blockchain and software, LeoNovus Inc. (LTV) provides software-defined object storage. In August, after it published Q2 earnings, we made a argued that the stellar financial performance of the company will help build a bullish trend for the company. By the end of September, LeoNovus Inc’s stock almost doubled in market capitalization. Over the last two months, it has lost most of the bullish momentum and the price fell below the support near $0.175 per share. Currently, it is trading near the support around $0.155 per share.

Last week, LeoNovus Inc published its Q3 earnings and stated that it has identified and qualified 62 customer projects and added three channel partners in Q3, where most of these customers are large enterprises.

In the press release, LeoNovus Inc mentioned that it has additional potential projects with its large Canadian banking client, which are expected to generate additional revenues in 2019. While the company continued to make losses in Q3, the fact remains that its cash balance improved by sixfold over the past year.

LeoNovus Inc (LTV) December 2018

Given the strong balance sheet reported in Q3 and future revenue potential, we are confident that it will help drive a new wave of bullish momentum for LeoNovus Inc’s stocks in the coming weeks. However, conservative investors should keep in mind that there is a strong volatility in the equities market in the U.S. and it may affect the system risk in the global equities that may have a negative impact on LeoNovus Inc’s stock price in the short run.

Hence, we would argue that investors should wait for the stock to break above the resistance near $0.175 per share before increasing their exposure to the company.

Bottom Line

Increasing the yield of the U.S. Treasury bonds has put a big question market on the global equity market and this week we saw some major price swing in the technology sector that also broadly affected the blockchain stocks. However, the underlying fundamentals of most of the companies in the sector remain solid and investors should focus on the long-term revenue potential of the decentralized applications, these companies are devoting their resources instead of short-term volatility in the market.

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.





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