On Wednesday, shares of U.S.-based fintech company Net Element (NASDAQ:NETE) soared by over 300%, hitting a 52-week high of $24.90, following an announcement that it has launched a blockchain-focused business unit to support its electronic payment services.
The blockchain business unit is expected to become a framework that efficiently connects merchants and consumers through the use of blockchain. The unit will also look to invest in unique projects that could disrupt the payment processing industry.
Net Element is the latest stock to explode thanks to the cryptocurrency frenzy of recent months. The following companies have already seen massive gains following moves into the red hot blockchain space.
Longfin Corp. (NASDAQ:LFIN)
Another hot blockchain stock on the market is Longfin. Similar to Riot Blockchain, Longfin jumped by as high as 2,600%, going from a $5 stock to over $140 a share, following its debut into the blockchain sector by buying Ziddu.com, a blockchain-based solutions provider.
Longfin’s CEO and Chairman, Venkat Meenavalli said on CNBC’s “Fast Money” that the “market cap is not justified”.
The stock has cooled down over the past two days to the $60-$70 range, and given its recent volatility, it could move up on the next blockchain-related news.
Riot Blockchain Inc. (NASDAQ:RIOT)
Riot Blockchain is one of the fastest movers on the market over the past two months, skyrocketing by almost 500% during this period.
Previously a biotech firm named Bioptix, the company changed its name and business to become Riot Blockchain in October, sending its stock to new heights ever since. Riot currently has stakes in Coinsquare, a Canadian cryptocurrency exchange, and TessPay, a Canadian firm focused on blockchain-based payment services.
Just recently, Riot raised $37 million in a private placement, following which the stock increased from $36.15 to a record high of $46.20.
Overstock.com Inc. (NASDAQ:OSTK)
Overstock is another popular name under investors’ spotlight as a result of this year’s bitcoin mania. Overstock was the first major retailer to accept bitcoin as a method of payment.
Earlier this week, Overstock’s tZero subsidiary launched its long-anticipated $US 250 million token sale, which would be the largest ICO to date. Overstock is also considering the possibility of moving away from retail and focus solely on cryptocurrency.
The company’s stock grew by more than four-fold from August to December, a period that saw bitcoin go up exponentially. It’s considered a good investment by industry experts for its presence in the retail sector and the sheer size of its ICO.
NXT-ID Inc. (NASDAQ:NXTD)
NXT-ID has announced its intention to develop a platform that allows cryptocurrency holders to make purchases at retail locations worldwide. As a result of this announcement, its stock went up by 75% to $3.19.
This deal follows up on its partnership earlier this week with Australia and New Zealand Banking to extend the contactless payment capabilities of the bank’s credit cards.
Victory Square Technologies (CSE:VST) (OTC:VSQTF)
Victory Square is a Canadian-based investor and incubator of blockchain businesses. It is able to identify innovative projects and ventures focused on the blockchain technology and provide resources for them to grow.
Currently, Victory Square’s portfolio contains eight unique companies in the blockchain space. A prominent name in its portfolio is FansUnite, which looks to develop the first blockchain-based sports betting platform.
Its latest acquisition is a 20% stake in Multapplied Networks, a software-defined wide area networking (SD-WAN) company. SD-WAN is currently considered as one of the potentially disruptive technologies of the future, and as evidenced by Cisco’s $610-million acquisition of Viptela, there is not shortage of confidence in this technology.
Like other blockchain companies, Victory Square’s stock has been a big market mover of late, going from $0.75 to $3.16 over the past month — a 300%+ gain.
The Bottom Line
Net Element is the latest to join a continuously expanding list of companies making headlines by entering the blockchain space. This industry is only in its early stages, so investors should keep a close eye on blockchain stocks for the upcoming year. This is just the beginning.
