The stock markets may have just opened, and while there is already a lot of positive news getting pumped out to investors this Thursday morning, such as the Dow Jones and Britain’s FTSE hitting new records, one cannot help but watch in awe as online advertising platform ChinaNet Online Holdings (NASDAQ:CNET) moves up the stock ladder, becoming one of Thursday’s top movers, trading as high as 300%.
What happened? Don’t worry, we’ll get to that, but here’s a hint: it has to do with blockchain technology.
ChinaNet Online Holdings
Despite dropping 5% in a trading session last week, ChinaNet Online Holdings is trading at $4.71, which puts the stock up $3.54, or a whopping 302.56%. The stock can be seen moving up and down a few cents every second or so, but it seems to show no signs of dropping below the 200% mark.
Based in Beijing, China, this online advertising platform primarily operates its business through its various subsidiaries, which are companies that are 100% controlled by a holding company, which is exactly what ChinaNet Online Holdings is: a holding company.
What Happened Thursday?
The craze surrounding digital currency Bitcoin might be slowing down – or so it was roughly a week ago due to its slump – but it appears the hype surrounding blockchain technology is only just starting to get into full swing with more and more companies pivoting into the blockchain sector.
You might recall that on December 21 Long Island Iced Tea announced that it will commence its involvement in the blockchain technology sector in 2018, starting with changing its famously known name to Long Blockchain Corp (NASDAQ:LTEA). Considering blockchain technology is the mastermind behind Bitcoin, it isn’t overly surprising that Long Blockchain Corp. surged more than 200% after announcing the name change. Despite dropping a few days after the announcement, Long Blockchain Corp. surged roughly 20% on January 2.
But this article isn’t about the US-based drink company; this is about ChinaNet Online Holdings. So, what exactly caused the company’s more than 300% increase? Well, it all boils down to ChinaNet’s Thursday announcement, in which the company disclosed to the public and its shareholders that it has entered into a strategic partnership with Wuxi Jingtum Network Technology. Essentially the goal of the new found ‘friendship’ between the two companies is an expansion of the blockchain sector.
Why is this Important?
Not only is this the latest company to move into the blockchain technology sector, it is also significant news because it means both companies are going to start to work together to create various new blockchain applications.
It has been stated that ChinaNet Online Holdings and Jingtum Network Technology will develop these blockchain applications for a number of customers, which will give them solutions to some of the colossal problems that haunt the blockchain sector each and every day.
The Takeaway
By now, it should be quite obvious as to why this announcement caused such a wave in the market Thursday, and with the ever-increasing popularity of blockchain technology, I would presume that this move is going to keep providing substantial benefits for ChinaNet Online Holdings.
Then again, nothing is ever a guarantee with the market, as we saw Long Blockchain Corp. drop a couple days after the name-change announcement, but it will still be worth keeping an eye on ChinaNet stock because who knows, this could either be the beginning of a considerable stock increase or it could just another one-hit wonder.
Check back in a couple days, and we’ll inform you of where the stock is sitting.
Featured Image: twitter
