Online Blockchain Share Price Continues to Tumble
The Online Blockchain share price has continued to tumble. However, a new digital currency offering may lead to a turnaround.
Online Blockchain plc and its subsidiaries operate as a blockchain corporation in the United Kingdom. The business is divided into two segments: faucet subscription and management services.
It also serves as an incubator and investor in technological firms, such as internet and information enterprises, blockchain developers, administrators, and custodians. In December 2017, the firm changed its name from On-line plc to Online Blockchain plc.
It is listed on the AIM market of the London Stock Exchange and is incorporated and located in the UK.
Online Blockchain has been working on systems to facilitate the adoption of blockchain and cryptocurrency technologies across various applications for some time.
Its first foray into the future was PlusOne, a media token that connects to the hub of an online community. PlusOneCoin provides an online community with the potential to reward members and promote content.
The company's shares are traded on AIM (LSE: ONL). There are currently 14,311,709 shares in issue, with zero being held by the Treasury and 3,059,350 of the securities not in public hands. Major shareholders include CH Chambers, who has 1,529,364 shares, accounting for 10.7% of the holdings. MJ Hodges currently holds 1,365,500 shares, which is 9.5%. Currently, there are no limits on the transfer of securities.
Since its incorporation on 19 December 2017, the Online Blockchain value has been in a downward trend, falling from 139.00p to 19.00p in just under five years.
The Online Blockchain price reached a bottom of 7.00p in mid-2019. It rose again to as high as 100.00p before dropping back to 41.0p.
The share price then stayed in a range between 33.00p and 50.00p. This was before the Online Blockchain share price broke out to trade at 60.00p before falling back to 29.00p. In recent weeks it has been trading between 26.50p and 45.50p in a downward trend, before dropping below 24.50p to its current Online Blockchain share price of 19.00p
In May, Online Blockchain stated that its 'Brazio' cryptocurrency has reached another "important" milestone. The AIM-listed business revealed that Brazio, characterized as a listed safe digital money for Brazilian residents, saw its first 'halving' on 13 May.
It stated that halving is a cryptocurrency event in which the creation of new currencies is halved, implying that Brazilian 'miners' will see their block reward lowered from 200 coins to 100 coins.
There are now 83 million Brazio coins in circulation, with a total allotment of 210 million. According to Online Blockchain, the decreased supply, along with the previously stated high demand, is predicted to be a favourable indication for the Online Blockchain share price.
The Proof-of-Work currency, developed for unbanked Brazilians, with an average daily volume of 250,000 on SouthXchange and roughly 3,000 claims per day on cryptocurrency exchange FreeFaucet.
According to Online Blockchain, Brazio's mining distribution was designed for common PCs rather than specialized mining gear, unlike other cryptocurrencies.
According to the board, the next halving is projected in around two years.
"This is a watershed moment for Brazil, and we are encouraged by both the currency's development and appeal," said Clem Chambers, chief executive officer.
Brazio's security, swift transactions, and independent governance make it an appealing solution in Latin America, where cryptocurrency use is rising.
Perhaps the current announcement will cause the Online Blockchain share price to return to its highs of 139.00p, but according to technical analysis, the slump is continuing, and prices are approaching zero. Time will tell if this is a positive announcement for the Online Blockchain share price.
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Author: Emmanuel Baiden
7 years experience within the financial services sector most notably in Sales, Trading, research and writing articles within the crypto space. I have a bachelor's degree in International Business and a Master's in Investment and Risk Finance . I am also an associate member of the Chartered Institute for Securities and Investment.