Today we are looking at a unique investment in the Crypto sector. We find this company very interesting as it creates a rather unconventional route of investing in Cryptocurrencies. Standard investing is based on price movement, but this company earns revenue based on the volume. Recognizing that price is not of importance, but volume and volatility are, we see the company is generation revenue in both directions of price. In our opinion this represents an attractive avenue for investing in Cryptocurrencies.
Netcoins Holdings Inc. (CSE: NETC) is focused on assisting its customers buy and sell Bitcoins and a growing list of other cryptocurrencies through their Virtual Bitcoin ATM software which facilitates the purchase and sale of cryptocurrencies to mass consumers through its brokerage services. Netcoins currently enables cryptocurrency transactions in over 21,000 retail locations in Canada, Europe, Australia and on the over-the-counter trading desk (OTC). A recent report at www.researchandmarkets.com states, the crypto ATM market is expected to grow from USD 16.3 million in 2018 to USD 144.5 million by 2023, at a CAGR of 54.7% from 2018 to 2023. Growing opportunities in developed markets, such as the US, Germany, and Japan, and increasing acceptance of cryptocurrency across industries are among the factors providing opportunities for the crypto ATM market.
The month of August has been quite an active month for Netcoins as the company announced some pretty big milestones. Netcoins announced the listing of NIO, Litecoin (LTC), Ripple (XRP) Stellar (XLM), Elastos (ELA), DecentBet (DBET), Bitcoin Cash (BCH), EOS and Peerplays (PPY). That’s nine cryptocurrencies that the company has added in the month of August. Bear in mind Netcoins receives $25,000 USD as a listing fee, which is also a recurring annual fee, on their LaaS (Listing as a Service) business model for coin listings. In our opinion that is an impressive accomplishment to achieve within 30 days. Netcoins Holdings is very aggressive in adding cryptocurrencies to its platform and we anticipate that the company will be announcing more token listings in the coming weeks.
Furthermore, with the use of USD Flexepin vouchers, Netcoins has also added the ability for people in both Kenya and Ghana to buy cryptocurrencies. The company also has stated that in the coming months the company will be expanding further into the continent of Africa and will launch its services in Tanazania, Zambia, Uganda, Rwanda, South Africa, Nigeria, Zimbabwe, Malawi, Nambia and Botswana.
The company recently announced transactional revenues of $12.9 million in two months, July and August. This is great news as we can see that through the addition of cryptocurrencies and current expansion plans being executed by the company and we see this growth through its increased transactional revenue.
With a current market cap of approximately $10.5 Million, the company has announced that it currently has $5.5 Million in cash and cash equivalents, no debt and most importantly the company has generated positive cash flows of $64,000 for the month of August! This is the company’s first month achieving positive cash flows since its public listing in March of this year. Taking all the above in account, we believe Netcoins presents a great opportunity for investors looking to capitalize on the crypto market.
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