360 Blockchain Inc. (OTC:BKLLF) (CNSX:CODE) today announced that it would be increasing its investment in Arcology to $2 million. This will increase 360 Blockchain’s percentage ownership to 51%. So, what effect has this had on the company’s stock? Not a great one, because the stock has actually dropped by 9% since Wednesday’s close.
First of all, what exactly is Arcology and why is it relevant here? Well, Arcology is a transformative blockchain technology platform. When you consider a regular blockchain network, blockchain being a continuously growing list of records (or blocks) that are linked together and secured using cryptography, you’ll note that it is currently only two-dimensional and flat. The things that connect the blocks, called nodes, can only do so much as their computing power allows for. Arcology’s blockchain, however, is meant to be so much more than that. It’s an extensive system that is constantly growing bigger and improving on itself, behaving as though it were a living community rather than a network of computers, explains Jeff Koyen, Strategic Advisor and 360 Blockchain USA President and CEO.
This is most applicable when looked through the lens of Ethereum, which is a cryptocurrency similar to Bitcoin, only it gives programmers additional freedom and uses beyond just mining for a digital currency. Ethereum is capable of running 10-30 transactions per second, but the transaction speeds have slowed down enough that there is a current backlog of 14,000 transactions. Arcology is hoping to improve on blockchain in general and on the blockchain used for Ethereum specifically so that such backlogs as these no longer occur.
And now, 360 Blockchain has the majority stake in that. George Tsafalas, President and CEO of 360 Blockchain, explained that “for all the hype surrounding Bitcoin and other highly speculative cryptocurrencies, it’s the underlying technology – blockchain – that has the greatest future. At 360 Blockchain, we’re committed to building this future, and our investment in Arcology is a significant leap in that direction.”
For all this, it doesn’t seem to be benefitting 360 Blockchain’s stock at the moment. Currently, the stock is at $0.222, which is down $0.022, or 9% from yesterday’s close of $0.244, and it’s been trending downwards since Wednesday after having a fairly good uptrend since mid-December.
360 Blockchain’s stock may recover yet. It all depends on the developments that blockchain makes over the next few months.
Featured image: facebook
