Why Singlepoint Inc (OTCMKTS:SING)
Shares of Singlepoint Inc (OTCMKTS:SING) declined 5.6% to $0.034 in the last session amid heavy volume trading. About 29.6 million shares were traded on the day, which was significantly higher than the average daily volume of 15.5 million.
The plunge in the stock followed an announcement by Singlepoint that it had made a block purchase of digital currency called $Weed from one of its joint venture partners.
Despite the decline, Singlepoint Inc (OTCMKTS:SING) has made tremendous gains this year. At the last session’s close, the stock had risen 211.9% since the beginning of the year and more than 200% over the last 12 months.
Large block purchase of $Weed
Singlepoint Inc (OTCMKTS:SING) said it purchased $Weed from its joint venture partner First Bitcoin Capital (OTCMKTS:BITCF). It described it as a “large block purchase” from a crypto industry leader. But Singlepoint didn’t disclose how much it invested toward the purchase. This may have tempered with investor confidence in the stock as some investors may have worried whether Singlepoint was making a sound investment in the crowded and volatile cryptocurrency market.
Nevertheless, Singlepoint Inc (OTCMKTS:SING) said its purchase of $Weed would go a long way into helping solve payment problems that vendors and consumers encounter in the cannabis industry. Additionally, SinglePoint pointed out that $Weed has a bright future, citing the successful floating of the currency in the “booming Cryptocurrency markets”.
According to Singlepoint Inc (OTCMKTS:SING), $Weed recently completed an ICO (Initial Coin Offering), resulting in a market capitalization of about $60 million for the new digital currency. ICO is an unregulated means by which new cryptocurrency ventures raise funds by selling a fraction of the currency to investors in exchange for regular currencies or other cryptocurrencies – such as Bitcoin.
Consumer first approach
The $Weed has already been listed in three cryptocurrency exchanges and First Bitcoin Capital is planning to list it on more exchanges in the near future. SinglePoint observed that the listing of $Weed in additional exchanges would increase interest in the currency to the levels of its peers such as PotCoin.
SinglePoint said it will work with First Bitcoin Capital to rapidly drive consumer interest in $Weed in what it described as “consumer first approach”. This approach will incorporate several programs, such as special offers, loyalty and the ability to monitor purchasing habits to help build a valuable database for the cannabis industry.
While shares of Singlepoint Inc (OTCMKTS:SING) plunged in the wake of the $Weed investment announcement, shares of its joint venture partner First Bitcoin Capital soared 10.8% to $0.46 in the last session.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.