‘CAD $ 4 million in 24 hours’ is the headline that hits you when you run a search on Netcoins Holdings Inc (CNSX:NETC).
The company which has grown into the cryptocurrency giant it currently is has been on a listing spree over the past few months, allowing for new tokens to be listed on its platform thus indirectly promoting its platform to cryptocurrency miners, users, funds, brokers and other institutional investors. Through this, their share price has also been seen to run towards the green zone, hitting highs of CAD $.18 or US $.1.3 as shown in the price action chart below. However, its share price currently trades at US $.099.
Throughout this period, we have been evaluating the company’s performance to assess their growth trajectory. We have since established a few growth parameters driving the company which has been used to come up with the following in-depth report.
Netcoins Holdings Inc: Company History
Netcoins Holdings didn’t always operate within the cryptocurrency space. Until August 2018, the firm was known as GAR Holdings Limited and operated within the industrial metals and minerals space as an exploration and development company. With GAR situated in Canada, the firm focused on the exploration of gold deposits within the country.
In 2018, however, the firm had a strategic drift, with the board choosing to shift their goals and strategy and aligning them with the cryptocurrency industry. As a result, the company changed its operations to the development of a platform which would allow cryptocurrency developers to purchase and access cryptocurrencies across the globe and well as provide a gateway through which trade would be facilitated. They have since partnered with over 21,000 retailers across three continents to ensure products can be traded in using this new technology and have also been on an onboarding streak with different renown cryptocurrency developers.
The aforementioned partnerships, as well as their impressive technology, has been pivotal to their success thus far. The company’s goal has been to foster cryptocurrency transactions across the globe and so far, they seem to be quite in line with their target. Going forward, management seems to be working towards ensuring that the momentum is maintained through forging more partnerships and ensuring more daily transactions are carried out.
NETC: Recent Developments
There have been a number of new events which have taken place this year; all which have come to impact the operations and profitability of the company. Some of these events are expounded on below.
Series of Altcoin Listings
The past month has seen Netcoins Holdings list about ten series of altcoins on their platform, some of which include major altcoins such as Bitcoin Cash, EOS and Ripple. Through this, Netcoins has been widening their coin base, allowing for a larger pool of investors and buyers to transact on their platform: higher demand. Furthermore, given the diversity in the use of the altcoins, it allows for different people to use the platform for the different roles such as interbank transfers, artificial intelligence, the internet of things (IoT) and so on.
The company’s business model entails charging a fee to all players who list their coins on Netcoins’ platform. As a result, they receive a $25,000 listing fee as well as an annual fee – a similar $25,000 fee – paid throughout the period for which the coin is listed. The company’s management remains confident that more coins will list on their platform going forward. As such, they have been on an aggressive marketing campaign to promote their platform and ensure more transactions are carried out through it.
This, however, hasn’t been all from them.
Earlier this month, Netcoins signed a definitive agreement with global voucher partner. Through this, they would grow their reach across the globe to over 171,000 retail stores across 65 countries in 6 continents. The agreement will see the voucher partner integrate their systems with Netcoins by November 2018 and open up the world to them – vouchers are meant to ensure that individuals and institutions can purchase cryptocurrencies with ease using their cards and securely through the Netcoins platform.
To this, the management was jubilant, praising the whole process as a great stride to their business, their expected revenues, and its general valuation as below:
“This expansion adds significant value to our network of already listed coins, while making the purchase of crypto even that much more accessible globally… roughly a 7x increase in our retail footprint which opens the door for people to purchase crypto in a whole new way that is simple and secure.”
The CAD $4 million mark
Netcoins had earlier this month released information that their transaction values had hit $12.9 million over the first two months of the third quarter. Back then, the management was excited about this milestone as it had set the pedestal on which they would surge higher. In addition to this, they had come up with an aggressive expansionary campaign whereby they were to venture into emerging and frontier markets in a bid to ensure higher transactions.
A few weeks later, they have released a statement detailing that their transaction revenues had risen to CAD $4 million per day, a new milestone for the company. This speaks to the high volumes which the company is generating given the low prices akin to the cryptocurrency market.
The company CEO Mark Binns went ahead to state:
“Our upward trajectory is a testament to our sales team and our public, audited and transparent business model, lending trust to every deal we process.”
The above comes as a blessing to the firm as it is expected that NETC will leverage on the above sales to market to and onboard new clients onto their platform. All in all, the firm will soon springboard to a new level; riding the cryptocurrency wave all the way to the top.
NETC is backing on their aggressive marketing strategy as well as supporting fundamentals to boost their growth. Thus far, we remain confident that their growth trajectory remains upward sloping and are therefore bullish about the stock.
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Disclosure: We have no position in NETC and have not been compensated for this article.