- Net Element, Inc. shares registered an initial increase of over 300 percent after the announcement of a new blockchain unit
- The project will be executed in partnership with Bunker Capital
- Net Element’s move follows several similar announcements and the growth of the cryptocurrency market to over $600 billion in December 2017
Net Element, Inc. (NASDAQ: NETE) saw an increase in shares of over 300 percent on December 19, 2017, after the company announced the launch of a new blockchain-based business unit. Eventually, the initial increase slowed down, but company shares were still up around 254 percent at the time of Market Insider’s report the next day (http://dtn.fm/fKUr5).
Net Element is a technology-driven enterprise aimed at developing specialized mobile payment solutions and transaction services. Some of the company’s key developments include restaurant point of sale solutions, retail and mobile point of sale solutions, analytical tools, sales partner solutions, online payment tools and mobile transaction technologies.
The blockchain-focused business unit will become a decentralized ecosystem that will establish the framework for the provision of new Net Element value-added services. Blockchain technology will be relied on to establish the direct connection between a buyer and a merchant. Thus, the efficiency and simplicity of transactions in the system will increase.
Additionally, Net Element has announced that the new unit will invest in new projects aimed at decentralizing payment processes. These projects will preferably combine real world applications and blockchain cryptocurrencies to address a growing market need.
In November 2017, the global cryptocurrency market surpassed the $300 billion mark (http://dtn.fm/TYIj5). The new development was the result of a massive surge in the price of bitcoin, as well as ethereum. As of December, the market capitalization for cryptocurrencies reached $600 billion, a remarkable surge from $17 billion in January 2017 (http://dtn.fm/1Wmzv). The rapid upward shift is demonstrative of the growing interest in blockchain adoption and cryptocurrency payments.
Experts predict that major cryptocurrencies are here to stay (http://dtn.fm/uaY38). Some also suggest that brand new cryptocurrencies will enter the big game in 2018 and beyond. While it’s impossible to determine how many blockchain protocols will survive and thrive, the market still has room available for new players.
Net Element CEO Oleg Firer said that we’re currently at the dawn of an evolution that focuses on innovative digital payment methods. The creation of the company’s new blockchain unit will increase transparency and compliance assurance. The unit will also enable the provision of value-added services to over 20 million ecommerce clients that are already relying on Net Element services.
The deployment of Net Element’s blockchain technology unit will occur in partnership with Bunker Capital – a company that describes itself as a cryptocurrency pioneer. The company’s range of services includes preparation and promotion of ICOs, as well as strategic investment banking and consulting in the field of cryptocurrency adoption. Bunker Capital CEO Remy Jacobson said in a news release that the company is looking forward to its joint project with Net Element for the purpose of developing innovative blockchain solutions in the payment industry.
Net Element’s announcement isn’t the first one in the field of blockchain technology adoption. A Chinese company called Future Fintech Group (NASDAQ: FTFT) previously announced that it will be making a switch from selling juices to cryptocurrency financial technology development. Company shares saw an almost immediate increase of 221 percent.
For more information, visit the company’s website at www.NetElement.com
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