The9 Limited (NASDAQ:NCTY) has been a trending player on the stock market today. At the time of writing, the stock is trading at $1.31, which puts the stock up for the day currently. The stock is up $0.31, or 31%, from the previous closing price of $1.00. So far, the day has ranged from a low of $1.22 and a high of $1.68, giving the stock a new all-time high for the company’s 52-week range.
What’s behind the stock movement? The same thing that’s behind a lot of companies stock movements these days: blockchain.
The9 has traditionally functioned as an online game operator in China, primarily licensing 3D online games from third-party game developers, including Electronic Arts (NASDAQ:EA). One of the most prominent games the company has licensed in the past was World of Warcraft, although The9 no longer holds the license for this game.
However, The9 has established itself as more than just a gaming company. It is also a well-established internet company and with that comes the entrance of blockchain.
The company’s wholly-owned subsidiary, The9 Singapore Pte. Ltd., has entered into a partnership with Gingkoo Technology Company Limited. Gingkoo Technology is an established FinTech company in China that began working with blockchain technology in 2015.
The agreement is as follows: The9 will begin providing blockchain technology product development services and offshore offering, investing, and financing services to enterprises across the globe, while Gingkoo Technology provides a technical team and support to the mix. The9, with the help of Gingkoo Technology, intends to provide global enterprises with a full range of customized services for blockchain-related projects. The goal is to bring blockchain to more global enterprises, expanding the blockchain ecosystem even more.
This is an ambitious but worthy goal. Blockchain technology applications have the potential the help a lot of people in a lot of different ways – improving business transactions, the supply chain, security, identity protection, the works. I’m only surprised that The9’s stock didn’t increase more from the news.
Featured Image: mmoculture.com
