3 Penny Stocks With Solid Ties to the Cryptocurrency and Blockchain Market
As penny stocks and crypto markets fluctuate rapidly, there are plenty of ways to take advantage of swift price movements. The volatility seen in cryptocurrencies can be used as an indicator for potential growth and consolidation periods with penny stocks. Keep in mind that high volatility also means high risk, especially when trading stocks under $5.
Moving into the digital era, it’s clear that physical money is becoming a thing of the past. With new technologies such as Apple Pay, Zelle, Venmo, and Paypal, to name a few, it’s obvious that digital currency is the future.
This is true as well when it comes to both domestic and international businesses. Additionally, blockchain-based currencies have a myriad of uses for both domestic and international money transfers, which is a multi-billion operation yearly.[Read More] Hot Penny Stocks To Buy on Robinhood? Here’s 4 To Watch
Many businesses are taking advantage of this by entering the crypto and blockchain market. Crypto mining, modern blockchain technology, and integrated software are all areas that are piquing investor’s interests right now. This is because of both the low price points of penny stocks, and the potential future that these companies offer.
When formulating watchlists for blockchain penny stocks, it’s important to keep in mind both what the company is offering as well as speculative opinions relating to it. Both can be indicative of future price movements and are key to understanding penny stock investing. With all of this in mind, here are three crypto and blockchain-related penny stocks to keep in mind for June.
3 Crypto Penny Stocks That Belong On Your June Watchlist
Cinedigm Corp. (NASDAQ: CIDM)
Cinedigm Corp. is an entertainment penny stock and a leader in the independent streaming industry. Recently it announced its new Local Now service, which is a worldwide streaming service that covers all types of genres. As a business, it also has strong ties to movies, television, and other forms of entertainment content, entertaining hundreds of millions of viewers every day.
Today, Cinedigm announced a deal with MonteCristo International Entertainment (a subsidiary of Broadside Enterprises), to feature the latter’s films on Cinedigm’s platforms. Because of CIDM’s impressive digital reach, Broadside Enterprises is optimistic about getting more eyes on its content and in the potential of building a strong relationship with Cinedigm moving forward.
CIDM is also a large player in the NFT market. With GameStop Corp. (NYSE: GME) announcing its entrance into the NFT market today, non-fungible tokens are all the rage right now. And, because NFTs work on the blockchain network, this move has increased attention toward the entire crypto and blockchain ecosystem.
Cinedigm plans to utilize NFTs to become a more innovative and competitive company in the fast-paced entertainment market. And, it will help it to create content as well in the coming months. Since the announcement, CIDM stock has surged in bullish interest.
“Cinedigm is excited about the rise in consumer adoption and commercial prospects for #NFT…Given our extensive film library, deep connection to fandom and collectibles, and $CIDM’s strong brand partnerships and technology capabilities, I have directed our product team to develop new NFT products to enhance the user experience of our loyal audiences.”CEO of Cinedigm, Chris McGurk (on Twitter)
Considering these moves, will CIDM be on your list of penny stocks to watch?
Sos Ltd. (NYSE: SOS)
With crypto markets fluctuating greatly, SOS Limited is working to maximize its involvement. It states that it is depending on the future of digital currency to maximize its placement in both blockchain and big-data-driven technology.
While it began as a provider of emergency services technology, cryptocurrency and blockchain are now its main source of revenue. It continues to rapidly expand on its digital mining capabilities by adding thousands of Bitcoin mining rigs as well as hundreds of Ethereum rigs.[Read More] 5 Penny Stocks Analysts Say To Buy With Targets Up To 219% Right Now
The core of its business is SaaS (software as a service). Its offerings include both cloud computing and AI technology. Additionally, its clientele consists of large businesses such as insurance, healthcare, and financial institutions. The services it provides to these companies is a major utility to them, thus the reason why SOS is so popular right now. Many investors have noticed the increased demand for SOS’s services as a result.
SOS recently secured a contract with a local Chinese hydropower company. This is off the back of the recent push for more environmentally friendly options of crypto mining. While digital currency starts to become less taxing on the environment, more investors are working to find valuable penny stocks working within the crypto ecosystem. Taking this into consideration, do you this SOS belongs on your crypto penny stock watchlist?
Uxin Ltd (NASDAQ: UXIN)
Another penny stock investors are watching right now is UXIN Limited. This company operates in the Chinese auto market, selling used cars out of Beijing and exporting them around the country.
UXIN has optimized its e-commerce site, providing a cohesive online platform for car auctions, online retail, and financial derivative services. As a penny stock under $5, UXIN is addressing the used car shortage by providing its middle man services to areas of the country where buying cars may be inconvenient.
Due to a lack of intra-country transportation, it can be difficult for buyers to trust the condition and information regarding a used car purchase. Additionally, due to the COVID-19 pandemic ending, more people are looking to purchase cars than in many months prior. As a result, UXIN has become more popular in the trailing year.
Its current market cap of $884 million is continuing to grow in response to its recent 30% annual revenue increase to $49.5 million. Considering these numbers and the fast-paced industry it works in, UXIN looks like a very interesting penny stock to watch.
There is still a long way to go before the end of the pandemic brings the used car market back to normal. However, the demand for used cars will likely remain high for the foreseeable future, especially in rural parts of China.
The increase in its digital e-commerce model is another reason to keep UXIN on your penny stocks watchlist. So as we continue to watch Covid cases drop globally, UXIN could be worth keeping an eye on.
Which Penny Stocks Are You Watching?
With the end of the pandemic in sight, the lasting trends from Covid such as cryptocurrency and fears of inflation will likely remain. However, because there are so many things going on in the stock market today, making a list of penny stocks to buy could be a great choice.[Read More] 3 Hot Penny Stocks to Watch as GameStop Enters Into NFTs
With this in mind, the normal practices of research and getting a trading education will always reign supreme. So as we traverse May and move into June, which penny stocks are you watching?