It’s not looking good for KEY CAPITAL CORP (OTCMKTS:KCPC) in the market. After skyrocketing to record highs of $7.22 a share, the stock has lost more than 80% in market value as uncertainty in the cryptocurrency space continues to affect its sentiments among investors.
The stock has paid the price for the company’s failure to diversify its holdings and provide crucial updates needed to affirm long-term prospects. Given the strength of the downward pressure, it is becoming clear that the stock could plunge to 52-week low’s, amidst waning investors’ confidence in the stock and the industry at large.
Key Capital Corp is not the only stock that has come under pressure. Since the start of the year, cryptocurrencies-focused stocks have lost a significant amount of value amidst increased regulatory pressure around the world.
Concerns about a potential bubble bust have only gone to fuel fear among investors, most of whom have resorted to cutting their positions awaiting to see if the situation will stabilize.
Key Capital finds itself in a precarious position and in dire need of a big development if it is to bounce back from the current mess.
Key Capital Business Overview
Key Capital bills itself as a financial service company focused on providing alternative finances solutions to resource and energy products. The company is currently developing diversified investment banking interest across the mining, energy, FinTech, and life sciences sectors.
In the recent past, the company has focused its attention on the Fintech space with an eye on the blockchain/cryptocurrency market. Late last year the company formed a Fintech division with the aim of pursuing blockchain and cryptocurrency opportunities.
Cryptocurrency/ Blockchain Ambitions
Key Capital Corp saw its valuation receive a major boost on the signing of a licensing and development agreement with Crypto Investor, late last year. The agreement was for the development and integration of blockchain / one-time system solution, with an existing breakthrough transactional security product.
Investors reacted positively to the company announcing that it intended to target every cryptocurrency account holder and trader with the blockchain solution. The announcement came at a time when protection of cryptocurrency accounts had emerged as big business on increased hacking activities around Private Keys for cryptocurrencies.
“With over 20 million wallet accounts today and new accounts being created at an exponential rate, Key Capital’s opportunity to develop enhanced security solutions on top of a market-ready security product for Private Key’s protection is timely. It also positions the Company for participation with Crypto Investor as potential market leader in the rapidly expanding cryptocurrency market,” said CEO, Christopher Nichols.
In January CryptoSecure launched the SafeWindow’ groundbreaking SaaS security application as it moved to secure Private Keys and Cryptocurrency transactions. The firm is now eyeing up to 2,000 Beta licenses to road test the security solution, as work to improve it continues
“SafeWindow’ creates a virtual computer and screen on the user computer, as well as a further virtual machine on the user tablet or smart device. These virtual existences are only there for the duration of the cryptocurrency activity or transaction. They cannot be seen by any hacker, authority, or spyware as the interaction is conducted in invisible virtuality,” CryptoSecure in a statement.
In addition to the launch, Key Capital Corp plans to launch a flat-fee CryptoSecure decentralized cryptocurrency exchange before the end of the year. The platform will enable secure and confidential peer-to-peer trading of numerous cryptocurrencies in a private virtual environment.
The launch of the SafeWindow Private Key protection solution comes at a time when the cryptocurrency space is struggling with a lot of uncertainty. Investors are fleeing the space amidst growing concerns about what the future holds for cryptocurrencies.
It remains to be seen if Key Capital will be able to generate a significant amount of value from the solution, at a time when investors are skeptical about cryptocurrency investments.
The company also faces a lot of competition in the space as there are other heavily financed corporations that a have launched solutions designed to address the Private Keys hacking menace.
What Does the Future Hold for Key Capital Corp?
It goes without saying that the future does not look good for Key Capital Corp, given the turmoil in the cryptocurrency space. With all the major cryptocurrencies having retreated from record highs, it is becoming clear that it could take long before the industry recovers.
Key Capital Corp finds itself in a precarious position given that it has most of its business and opportunities for growth tied to the cryptocurrency space. Given that the company is yet to provide an update on how it intends to counter the turmoil in the space, it’s share price could remain under pressure until sentiments in the industry improve.
It may be wise to take a pause on any investments on Key Capital until the dust in the cryptocurrency space settles.
Disclosure: We have no position in KCPC and have not been compensated for this article.