Blockchain Penny Stocks Are Back As Crypto Rises in Value
The recent market correction with both penny stocks and blue chips, presents investors with an interesting opportunity. This is the case with cryptocurrency and penny stocks and the companies that work between these two industries right now. While penny stocks are seeing more momentum right now, investors should make sure they understand the current state of the market.
The market has always worked in cycles, where some months see highs and others see lows. It’s worth noting that this natural flow of the stock market is something that can occur with little to no notice.
As the potential currency of the future, companies continue to work out how to find new uses for crypto. With big banks getting involved, and institutional investors buying up crypto, there’s no doubt that it will have greater utility in the coming months and years.
When crypto grows in value, often other businesses working in the cryptocurrency and blockchain market do as well. This can include companies that specialize in crypto mining, digit asset implantation, and other types of blockchain technologies.
The rapid advancement seen today is progressing alongside innovation in the crypto industry. If you’re looking to generate a crypto penny stock watchlist there are a few things to consider.
Also, we have to consider the speculative effect on cryptocurrency. This includes the effect of social media such as Twitter, TikTok, and others. Just today, Elon Musk tweeted “Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising.”
While this in itself is not major news, when an influential figure speaks on crypto, it validates it even more. And, this is especially true with Musk, the self-proclaimed ‘DogeFather’.
Investing in Crypto Penny Stocks
The first thing to understand is what the company does in relation to the blockchain ecosystem. Is it helping large scale adoption of cryptos and blockchain? Does it have a unique idea or business model, and does it have a lot of competition? These are important questions to ask when considering which penny stocks to buy.
The second thing to consider is its financials. How does it make money? How is its profitability? And what are the future implications of its technologies? Using research as well as analyst insights, can tell a lot about a company.[Read More] Hot Penny Stocks To Buy on Robinhood? Here’s 4 To Watch
Lastly, investors should use balance sheets and other financial information to make a complete picture of a given penny stock. These questions will help to determine what the financial trajectory of the company could be moving forward.
As we move in and out of a period of consolidation, it’s important to keep an eye on crypto penny stocks for good buy-in opportunities. Secondly, it’s important to consider previous highs, as they can tell a lot about the investor sentiment behind a company.
With stocks under $5, investors should think about their tolerance for risk. Because penny stocks tend to be highly volatile, large price fluctuations are common. While this is not necessarily a bad thing, it is something to keep in mind. All things considered, here are four crypto penny stocks to add to your June 2021 watchlist.
4 Crypto And Blockchain Penny Stocks You Won’t Want To Miss
- ZW Data Action Technologies Inc (NASDAQ: CNET)
- LM Funding America Inc (NASDAQ: LMFA)
- Future Fintech Group Inc (NASDAQ: FTFT)
- Ault Global Holdings Inc. (NYSE: DPW)
1. ZW Data Action Technologies Inc (NASDAQ: CNET)
ZW Data Action Tech is an integrated and high-level cloud-based business that operates in the integration of digital chain-related data analysis. The company works to optimize its clients performance in the various digital sectors it operates within.
CNET uses a cloud-based platform that performs blockchain-related analysis on a client’s marketing and consumption operations. By presenting results, it can help improve small and medium-size businesses’ operations by finding the faults and areas for improvement. CNET’s updated approach to digital analytics and complex analysis could make it worth adding to your penny stock watchlist.[Read More] 5 Penny Stocks Analysts Say To Buy With Targets Up To 219% Right Now
CNET’s operations span the entire globe, serving more than 3,000 customers worldwide. With its large bank of over 500 employees, it’s able to meet the demand of each business without the worry of being understaffed.
This blockchain penny stock is headquartered in Beijing, China, and exceeds an annual revenue of $30 million. Its primary business is with small and medium enterprises (SMEs) working to utilize its SaaS service (CloudX).
As more and more businesses convert to digital models such as the ones CNET offers, the hopes are that ZW Data Action can continue growing. It’s important to consider its exposure to the crypto industry which is relatively limited compared to others. However, ZW Data remains a sizable player in the crypto and blockchain ecosystem.
2. LM Funding America Inc (NASDAQ: LMFA)
LM Funding America is a fin-tech company working to transform the world of digital-related financial instruments. It owns many subsidiaries as well that operate and provide funding to nonprofit community associations in Florida, Washington, Colorado, and Illinois.
LMFA is developing its digital asset technology to include Bitcoin, Ether, and other cryptocurrencies. Through organic and acquisition-based growth, LMFA is using the recent digital currency market to generate interest in its business. This week its share price has increased 12%.
In its most recent first quarter report, announced a few weeks ago, the company posted some very solid numbers. This includes a net income of $4.4 million alongside $0.87 of EPS per basic common share.
“Revenues from our community association receivables business declined as we continue to develop a digital asset technology strategy to unlock the potential of this business.
We expanded our core business of buying discounted debt and collecting it through court proceedings with the Borqs transaction. We entered the Borqs transaction projecting to net $2 million and we were pleased to realize a $5.7 million return.”CEO of LMFA, Bruce M. Rodgers
While it only reported revenue of $177 thousand for the period, it ended the quarter with more than $17.8 million in cash. Considering this, will LMFA be on your list of penny stocks to watch?
3. Future Fintech Group Inc (NASDAQ: FTFT)
Future Fintech Group is a company we have covered numerous times in the past few months. This crypto penny stock is a leader in the blockchain e-commerce market and has ambitious goals for its future. FTFT is based out of Florida and specializes in implementing cryptocurrencies for online shopping in the digital marketplace.
Future Fintech is currently developing its Chain Cloud Mall (CCM). This is essentially an e-commerce platform that allows goods to be purchased utilizing blockchain technology.
Recently, it entered into the Chengdu Urban Blockchain Industry Alliance which is a leader in the development of blockchain based technology. This includes research and development operations as well as applied research centers for the purpose of furthering cryptocurrency and the underlying tech.[Read More] 3 Biotech Penny Stocks To Watch That Analysts Are Bullish On Today
Year to date, shares of FTFT have shot up by over 50%, which is quite substantial. However, a lot of the potential with Future Fintech is dependent on what it can do in the coming months and years.
Additionally, the company recently announced the acquisition of the money transfer company Khyber Money Exchnage. This deal, worth $820,000, should help Future Fintech’s position in the financial sector moving forward. Considering this information and knowing that crypto is becoming more mainstream, do you consider FTFT a penny stock to buy?
4. Ault Global Holdings Inc. (NYSEAMERICAN: DPW)
DPW is a penny stock that is looking for future growth through its acquisition-based business. It operates by acquiring undervalued businesses that have potentially groundbreaking technology and an equally substantial global impact.
Through its various subsidiaries, Ault works in a range of industries. This includes everything from defense and aerospace to telecom and biopharma. Because of this, its exposure as a company remains incredibly broad. Today, Ault will report its financial results for the first quarter of 2021 during midday. Considering this, let’s go deeper into what the company does.
DPW extends lines of credit to selected entrepreneurial businesses through licensed lending subsidiaries. It has raised a whopping $165 million for its subsidiary companies and has a positive outlook for future growth.
Because of its position in these industries, many investors feel confident in the next stages of growth for Ault Global. In its last financial report, CEO Kenneth Kragan gave a glimpse into the business.
“The financial results for 2020 demonstrate that we are achieving our objectives to grow revenue and improve operating results. Despite the disruption from the COVID-19 pandemic, we were able to increase fourth-quarter revenues by 14.8% from the prior-year period, driven by our defense business.”CFO of Ault Global Holdings, Kenneth S. Cragun
So, if you’re looking for a future-minded penny stock with a decent correlation to the blockchain and crypto industry, DPW stock could be worth keeping an eye on.
Are Crypto Penny Stocks Here to Stay?
As cryptocurrency becomes more mainstream, many investors are looking to get a piece of the burgeoning market. It’s no secret that we have a long way to go before the technology is usable on a large-scale basis. And, the massive volatility of cryptocurrencies continues to be a barrier for companies looking to get involved.[Read More] New Penny Stocks To Buy In 2021? 3 To Watch After Bitcoin Crash
However, blockchain technology has a myriad of uses that are only just beginning to be uncovered. And because there are so many companies on the cutting edge, the opportunity is almost limitless. Considering this, are crypto penny stocks here to stay?