Blockchain Foundry Inc. (CSE: BCFN)
Develops and commercializes blockchain-based business solutions and provides consulting services to corporate clients seeking to leverage blockchain technology in their businesses.
It’s no secret that cryptocurrencies have taken a beating over the last weeks. While individual cryptocurrency assets like Bitcoin and Ether have nosedived, blockchain technology will likely continue to advance in our lives. What’s the outlook for public companies involved in blockchain? How will crypto’s transitory drop affect the overall industry? Let’s take a closer look in this article.
Cryptocurrency prices nosedived over the weekend following last week’s big sell-off in U.S. stocks. The price of Bitcoin fell about 4% over the weekend to below $33,000, which is about half of its late 2021 high. The price of Ether, the second largest cryptocurrency by market cap, fell below $2,400, or down more than 5% from Friday.
The weekend saw a flurry of trading in the crypto market, with $112 billion traded in market volume, according to CoinMarketCap.
Strangely enough, the Nasdaq was down 21% this year, the price of Bitcoin is down 22%. While crypto had originally been seen as an alternative to the traditional market, it has become increasingly correlated with the stock market with the entry of large institutional investors like hedge funds and family offices.
An answer to why cryptocurrency is plummeting is that the overall market has been hit with negative sentiment over fears of inflation, interest rates, conflict and global instability.
It seems that retail and institutional investors are treating crypto much like any other risk asset that is not immune to interest rate hikes and inflation. Without fundamentals to support its price, it can see even higher volatility than commodities and stocks when sentiment is negative.
While cryptocurrencies have taken a major hit in the past months, the blockchain paradigm is here to stay. In a recent article from Forbes, blockchain is credited to solve some of the biggest key challenges faced by media and entertainment companies.
Although blockchain was originally leveraged for financial transactions, it has quickly spread to just about every other sector—including the media and entertainment industries. Media and entertainment companies have begun to use blockchain technology to change how they develop and distribute their content. Disney, an early adopter, developed a private blockchain platform back in 2014 to make transactions more reliable and transparent. More recently media outlets including The New York Times announced that they are deploying a blockchain solution to stop the spread of fake news. In Q1 2022, TIME magazine released the first fully decentralized magazine available as an NFT on a blockchain.
In the media space, blockchain promises to help in the following areas:
While the cryptocurrency market is now down for now, the new blockchain world will undoubtedly remain a growing force in how we do everything. William Mougayar, best-selling author of The Business Blockchain, said recently,“The blockchain cannot be described just as a revolution. It is a tsunami-like phenomenon, slowly advancing and gradually enveloping everything along its way by the force of its progression.”
Blockchain Foundry develops and commercializes blockchain-based business and consumer solutions, with a focus on infrastructure for digital assets and NFTs. BCF also provides blockchain consulting services to corporate clients. The company has 4 major business lines:
Learn more about Blockchain Foundry by visiting their website.
Disclaimer: The company described in this article is a customer of NAI Interactive Ltd. This material is for informational purposes only and is not intended as a recommendation or offer or solicitation for the purchase or sale of any securities or financial instruments, or for transactions involving any financial instrument or trading strategy.