Last Updated on March 1, 2021 by Henry John
There’s no doubt that blockchain technology is revolutionary and it has opened up a market with huge potential. And if you are looking to invest in this market by buying blockchain stocks under $3 or under $10, this piece will help you out.
To be honest, the Blockchain market is somewhat young and thus, unpredictable and volatile. Most successful blockchain stocks are usually stocks of companies mining cryptocurrencies such as Bitcoin and Ethereum, which means that the price of these cryptos affects the stock price of the companies to a large extent.
The silver lining however is that in spite of the risk, buying a good blockchain stock has the potential to raking in amazing returns.
Speaking about amazing returns, Overstock.com, a company that uses blockchain technology, has grown over 2,000% since featuring on this list as a blockchain penny stock that trading under $3 when it was first listed. Similarly, Riot Blockchain Inc., a company that mines bitcoin, appeared on this list when its stock traded around $1, and today it trades over $40 per share. Stocks like this can transform a portfolio massive.
If you are interested in investing in blockchain technologies, here are 5 blockchain penny stocks under $3 and under $10 to consider:
1. Future FinTech Group Inc. (NASDAQ: FTFT)
Future FinTech Group is a fruit juice company that has repositioned itself as a blockchain and FinTech company. The company runs a blockchain-based online shopping mall platform, a digital payment system, and a cross-border e-commerce platform.
At the moment, FTFT is a blockchain story play at best. Its stock is currently up over 200% YTD, even though its TTM revenue is well under $1 million. It’s difficult to justify the company’s market cap that stands over $300 million.
The company was incorporated in Florida, however it’s based in china. Future Fintech Group has raised $26.9 million in 2021 through the equity market in two separate direct listing, diluting existing shareholders, and yet its stock is still up over 200% YTD. The capital raise could be deployed to fund its blockchain technology research and development efforts.
I don’t fancy FTFT as a long-term investment (at the moment), however, as the stock has proven so far, it could be a highly rewarding way to capitalize on any short-term ‘Bitcoin Hype’.
The stock is one of the numerous ‘blockchain stocks’ to rise crazily in 2021 as a result of Bitcoin’s surge in price this year. FTFT is currently under $10 and could potentially be a good blockchain penny stock to trade. In every NO NO, there’s an opportunity: a YES YES. And who knows the company’s research and development of blockchain technologies could pay off over the long-run.
2. Mogo Inc.(NASDAQ: MOGO)
Mogo Inc. operates as a digital payments and financial technology company in Canada. The company provides finance app that empowers consumers with solutions to help them get in control of their financial wellness.
It offers users a free MogoAccount and provides access to various products, including free credit score monitoring, identity fraud protection, digital spending account with Platinum Prepaid Visa Card, digital mortgage experience, the MogoCrypto account, a product within MogoWealth that enables the buying and selling of bitcoin, and access to smart consumer credit products through.
Mogo’s wholly-owned subsidiary, Carta Worldwide, also offers a digital payments platform that powers the next-generation card programs from innovative fintech companies in Europe, North America and APAC.
The company’s platform delivers digital experience with various products all through one account.
On February 11, 2021, Mogo announced a deal to buy just under 20% of Coinsquare Ltd. for about C$56.4 million ($44.5 million), with the option to buy an additional 20% via share purchases and exercising of warrants.
Coinsquare is Canada’s premier cryptocurrency trading platform for trading Bitcoin, Ethereum, XRP, and other digital currencies. These move increases Mogo’s exposure to bitcoin and cryptocurrencies at large, making it a promising blockchain play.
Mogo Inc. was founded in 2003 and is headquartered in Vancouver, Canada.
3. First Bitcoin Capital Corp. (OTC: BITCF)
First Bitcoin Capital Corp. runs a vertically integrated cryptocurrency business that involves the mining of cryptocurrencies such as Bitcoin and Litecoin, developing digital currency exchanges that facilitate the buying and selling of digital currencies, and building online stores and various platforms whose goods and services will exclusively support the acceptance of Bitcoin.
According to the company’s website, their vertically integrated business includes Bit Explorer, an experimental new digital currency, BitMiner that manages its mining operations, and CoinQX, a cryptocurrency exchange. It runs other projects like iCoin News, Bit Cann Pay, ALT Coin Market Cap, 420 WiFi, and First Bitcoin Incubator, however, I think these projects are, honestly, a way to make them look bigger and more promising than they are.
First Bitcoin is the kind of stock you should be looking for when you are looking to capitalize in any significant rise in the price of Bitcoin. I just don’t see the company as a buy and hold blockchain penny stock.
Why did BITCF make this list? The stock has been up 138% YTD, a movement that was mostly influenced by the rise in bitcoin’s price this year. Bitcoin has returned around 55% YTD for investors, clearly BITCF returned more than bitcoin on the back of bitcoin’s rise. IRONIC!
If you’re an active retail investor/trader, playing this stock on a short-term basis can make a huge difference to your portfolio’s YoY return rate. However, if you’re a passive investor, this are the king of names you should stay clear of.
P.S. Instinctively, after studying the executives of the company, I don’t think they are capable of building anything that is truly revolutionary in the blockchain space. I also discovered that they are majorly owned by another OTC public company, Bots Inc., which offers exactly the same products/services and runs the same projects as BITCF. However, Bots Inc. claims to be engaged in “developing and servicing blockchain and robotics solutions”. What are the robotics solutions it offers? NOTHING ‘ROBOTIC’ about the BITCF products/services it claims to offer. Moreover, Bots Inc., acquired majority ownership in BITCF in July 2020, so what happened to the products and services Bot Inc. (OTC: BTZI) since it went public in 2012? Did they just scrap it all when they acquired BITCF? And if yes, what kind of company would that be?
So, just trade the bitcoin-hype when there is a major spike in bit price and be careful with this one. OTC stocks! tricky.
Here are some disadvantages of trading penny stocks.
4. TruTrace Technologies Inc (CSE: TTT)
TruTrace Technologies Inc. (OTCMKTS: TTTSF, CSE: TTT) is one of the few pure blockchain stocks that uses blockchain technology to power solutions outside of the crypto space. The company operates as a full-service software company that uses blockchain technology to power a decentralized platform for registering and tracking cannabis intellectual property.
The company’s stock is currently up over 200% YTD in both Canadian Securities Exchange and the OTC Market, and it has a market cap that hovers between CAD 15 – 18 million. In its financial year 2020, the company posted a loss of CAD 4.64 million, however, that represents a 68.60% growth in net income when compared to the financial year 2019.
TTT is a stock with enormous growth potential and has a business that revolves around really hot themes; Blockchain and Cannabis. The company’s flagship product, StrainSecure, is a product tracking and tracing platform that’s powered by blockchain technology and used by consumers, distributors, and regulatory entities to ascertain product quality, testing validation, and verification.
The legal (medical) cannabis market is booming and has a market size that is projected to reach USD 30 billion in 2026 according to Valuates Reports, it’s still a budding market with lots of potential and problems.
TruTrace has identified two major problems that its blockchain-powered platform seeks to solve. The company highlights that growers and breeders are investing millions of dollars, only to have their intellectual property stolen and consumers don’t understand or have confidence in the products they buy.
StrainSecure has the potential to solve this problem, and if could garner massive support and adoption, this product could launch TTT into space, and that CAD 17 million market cap could orbit in the billion dollars space.
5. Powerbridge Technologies Co., Ltd. (NASDA: PBTS)
Powerbridge Technologies Co., (NASDAQ: PBTS) Ltd. is a promising blockchain penny stock that’s currently under $5. It’s a Chinese-based company offering technology services and solutions to government agencies, trading, logistics, and e-commerce companies.
The company owns over 100 software copyrights and 28 patents in the fields of blockchain, big data, artificial intelligence, and microservice architecture among other related technology fields.
Powerbridge Technologies’ wide-range of technology services and are applied in the development of smart ports, smart parks, smart cities, data intelligence, cross-border e-commerce, Fintech, and foreign trade system. It offers this services/solutions system and software-as-as-service solutions.
The company’s bread and butter is its global trade software applications that serves different parts of the global trade ecosystem and empowers thousands of customers to carry out their operations easier and faster.
In 2019, the company launched a Blockchain cross-border compliance platform that enables custom agencies to monitor and control the flow of goods, documents, and vendors for cross-border trade events and transactions.
The blockchain platform was designed to improve the effectiveness of risk assessments and interventions, and enhance regulatory information transparency and synchronization among customs agencies and other government authorities.
Before the pandemic-influenced breakdown in global trade, the global trade value of goods exported throughout the world was approximately 19 trillion U.S. dollars in 2019. China’s foreign trade got to a historic high of $4.6 trillion in 2019, and this is the market where Powerbridge plays in. as a leading provider of trade software applications.
A 2018 publication by WTO (Can Blockchain revolutionize international trade?) acknowledged that “blockchain has the potential to impact both the traders and the government agencies involved in international trade significantly”.
It’s no longer news, among industry experts and enthusiasts that blockchain is set to drastically revolutionize international trade and companies like Powerbridge that are at the forefront in major countries are bound to benefit from the revolution: A no-brainer.
Powerbridge Technologies Co Ltd started trading on the NASDAQ in 2019 as PBTS, and its stock is currently up by 60% YTD. It’s has a market cap of $34.50 million and generated revenue of over $20 million USD in the financial year 2019.
PBTS is a promising long-term blockchain play that could potentially grow massively over the next five years. I’d like the fact that the company has government connections which is key to capturing significant market share in the Chinese foreign trade space.