Are Blockchain Penny Stocks Worth Watching?
Considering blockchain penny stocks for your May watchlist? Along with the rapidly changing markets we have seen in recent months, many high-returning blockchain penny stocks have increased in value during that time.
With the influx of Robinhood penny stocks, many new investors have been able to join the market. This has caused volume to increase this year and has correspondingly, helped to push prices up. It’s also worth considering that we are now in a new age of digital currency.
Today, many are seeing the advantage of cryptocurrency. With large banks and companies, such as Tesla Inc. (NASDAQ: TSLA), taking up huge stakes in these digital assets we have seen the market explode.
Blockchain technology is what backs the decentralized system that runs all cryptocurrencies. In order to further this work, there are many blockchain-related penny stocks that are publicly traded. This provides funding to the systems that are bolstering up this billion-dollar industry.Although penny stocks are held by many investors, some choose to avoid such stocks due to the high speculation. In the market, speculation is known as a driving force behind stock price change.
Additionally with higher speculation comes higher risk. By looking at company-specific information investors can mitigate unwanted surprises in their portfolios. This includes examining filings, volume changes, analyst projections, and especially recent news.
Information like this can help you decide whether or not a company is right for your penny stock watchlist. Creating a list of penny stocks can keep your portfolio organized in case there is rapid movement. No one wants to be the last to invest and by taking the time to educate yourself, you can stay ahead of the game.
Many companies abroad have become increasingly involved with digital currency. Because of this, investors believe that core digital currencies such as Bitcoin and Ethereum could have a much higher utility in the future.
Cheap penny stocks under $5 that work on blockchain-related tech or products, could correspondingly benefit. With this in mind, let’s review five blockchain penny stocks to watch right now.
5 Blockchain Penny Stocks To Add To Your Watchlist
- SOS Ltd. (NYSE: SOS)
- Uxin Ltd. (NASDAQ: UXIN)
- Future Fintech Group Inc. (NASDAQ: FTFT)
- Atari SA (OTCMKTS: PONGF)
- Ebang International Holdings Inc. (NASDAQ: EBON)
SOS Ltd. (NYSE: SOS)
Over the past couple of months, we have been covering SOS Limited. The company’s involvement in blockchain-based technology and big-data-driven marketing has made it into a an interesting penny stock to watch.
The core of SOS’s “software as a service” (SaaS) has built a foundation on cloud-computing, AI technology, 5G networks, and blockchain-based technology. By providing advanced marketing services to large clients such as insurance companies, healthcare providers, financial institutions, and more, SOS has integrated itself into many industries.
Since 2019, SOS has increased its total revenue by 333.6% to $50.3 million. Its operating costs have increased to $10.1 million, showing solid expansion. This however has also yielded an increase of nearly 200% in its net profits.
“SOS exited a challenging year with exceptional full-year operational and financial results that exceeded our expectations. I am very proud of our management team’s ability to plan and execute strategies for a profitable year upon completion of our business transition in 2020. […]
With a strong financial position, the entire SOS team is focused on the execution and delivery of the Company’s strategic growth plan in marketing data business.”
CEO and Chairman of SOS, Mr. Yandai Wang
Considering all of this, will SOS be on your penny stock watchlist?
Uxin Ltd (NASDAQ: UXIN)
An interesting tech penny stock is Uxin Ltd. Uxin is based in China and has worked to maintain a modern presence through its online platform. UXIN focuses on used car transactions much like the U.S. company Carvana. While it is known to be quite volatile, it does have a market cap of $600 million, making it a relatively large company.
Recently, UXIN has entered into a binding agreement with two major Asian investment firms and now has a new $300 million investment. It’s no surprise that after this announcement on Thursday its valuation skyrocketed. This small bit of news showed how volatile UXIN really is. Additionally, it hinted at a potential undervaluing of the company. Although not yet released, there is some speculation surrounding which investment firms completed the transaction.
A UXIN representative stated in regard to this that, “[UXIN has] completed the transformation to the inventory-owning model during the three months ended December 31, 2020, with 99% of the transaction volume sold from the Company’s own inventory.” This means that per car sold, the company was able to achieve more revenue, even though it sold fewer cars this trailing year. Considering this, is UXIN stock worth watching?
Future Fintech Group Inc (NASDAQ: FTFT)
As another leading company in the sector of blockchain e-commerce, Future Fintech Group is based out of Florida. It implements a digital finance technology to its clients by use of blockchain-based online shopping. Termed Chain Cloud Mall (CCM), FTFT further engages in financial services technology for the supply chain industry.
Having recently attended a Blockchain and Digital Industry Development Conference, FTFT entered into the Chengdu Urban Blockchain Industry Alliance. This alliance shares the belief that a variety of centers, including R&D and applied research centers, need to be developed to further blockchain innovation in China.
CEO of FTFT stated, “We are in agreement with the conference’s viewpoint and also believe that the increasing evolution of blockchain technology will continue to be applied in many sectors including finance, culture, entertainment, media, and intellectual property.”
The CEO goes on to state that “this provides us with an excellent opportunity to help to transform and upgrade industries in China. Consequently, we will continue to invest in blockchain technology and big data with the dual goal of making a deep impact on society as well as maximizing returns for our shareholders.”
Atari SA (OTCMKTS: PONGF)
As a video game developer, Atari SA is known for creating big-name games such as Pong and Astroids. Its recent management transition has led it into a new business direction. Specifically, it has aimed the company’s focus towards the blockchain and cryptocurrency market. This will create two parts of the company, Atari Blockchain, and Atari Gaming.
Being new to the blockchain industry, Atari intends to implement blockchain technology into its already existing infrastructure. It will do so by permitting cryptocurrency use in games and by creating NFTs. While it is a relatively new NFT penny stock, it’s move into this industry could be a big one. This will hopefully drive revenue back up in its 2021 financial year.
As a cheap penny stock, PONGF could be headed in the right direction with this transition. Older companies that recenter their goals towards future technologies have a much better chance of success. Because of this transformation, investors are showing increased attention in Atari. This is encouraging news for blockchain technology as well, as it only confirms how much future potential investors see.
Ebang International Holdings Inc. (NASDAQ: EBON)
Ebang International Holdings engages in the research, design, and development of circuit chips. In addition, it produces a range of bitcoin mining products. Before we go any further, it’s worth noting that there is a worldwide shortage of computer chips. This has affected markets all the way from computers and tech to automotive and defense. Because of this, many companies like Ebang, have seen the prices for circuit chips push upward.
With Ebang International, there are two factors to consider. On one hand, the company produces a range of technology products used in cryptocurrency mining. Because of the skyrocketing price of the meme crypto, DogeCoin, investors have been intent on finding crypto penny stocks to watch.
Second, the company produces the chips used in everything from fiber optics to optical network solutions and more. These devices can be used on IoT applications along with a range of others. Back in February, the company announced that it had launched a new part of its business to begin mining both Litecon and DogeCoin. This was a big deal back then, and even more so considering the meteoric rise of DogeCoin. Considering all of this, is EBON on your list of penny stocks to watch?
Are Blockchain Penny Stocks Worth It?
Blockchain penny stocks have been at the forefront of many investors’ watchlists. Through the increasing interest in digital currencies, blockchain technology has seen massive investments.
[Read More] 3 Penny Stocks With Huge Potential in May 2021
Without knowing the true trajectory of this market yet, investors need to do a lot of research before investing. As more software is being developed every day to meet the demand for the growing marketplace, it is obvious that time is of the essence.
Where do you think this market will go? What questions as investors should we ask when it comes to blockchain technology companies? Without a doubt creating a penny stock watchlist can help with answering these questions. Given what we’ve just discussed, do you think blockchain penny stocks have a place in your future?