It’s the one piece of news that has got cryptocurrency investors buzzing. U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler — a villain for the blockchain community who aggressively hounded enterprises specializing in decentralized financial services — will step down from his post on Jan. 20.
As Barchart content partner AP noted, “Gensler pushed changes that he said protected investors, but the industry and many Republicans bristled at what they saw as overreach.” With the election of Donald J. Trump to a second non-consecutive term, the writing was on the wall. During the campaign trail, Trump threatened to remove the regulator.
Not surprisingly, cryptocurrencies soared on the news. As of this writing — Thursday evening — the total market capitalization of all decentralized digital assets reached $3.25 trillion. To put that into context, that’s more than the gross domestic product of the U.K.
Of course, for speculators purely interested in the crypto ecosystem, acquiring individual coins and tokens may be the only choice. However, for those who want to broaden their speculation to include super high-risk penny stocks, Blockmate Ventures (MATEF) should be on your radar.
MATEF Stock an Intriguing Idea from Barchart’s ‘Top Penny Pops’
To be quite blunt, I probably wouldn’t have come across Blockmate Ventures had it not registered in Barchart Screeners, specifically the category entitled Top Penny Pops. As an over-the-counter (OTC) security, MATEF stock isn’t optionable. So, it’s one of those buy-it-and-see-what-happens types of ideas. With a market cap of just over 8.37 million CAD, you shouldn’t get too comfortable.
Based on its corporate profile, the company shows no sales whatsoever. At the moment, MATEF stock appears to be running on the eventual belief that at some point, the underlying enterprise will be viable. Information on the business is very sparse. That’s just another way of saying, let the buyer beware — or better yet, don’t say I didn’t warn you.
However, what makes Blockmate intriguing is the underlying concept. According to its website, Blockmate is a Web3 incubator and venture creator “focussing [sic] on businesses that utilise blockchain technology and decentralization to provide greater utility, accessibility and sustainability around everyday services.” In English, this means that the entity helps start and grow businesses that use blockchain technology and decentralized systems.
MATEF stock triggered Barchart’s algorithm because of its dramatic 33.1% move to 7.7 cents. In the trailing one-year period, shares have gained 286%. On surface level, it might appear — and understandably so — that it’s too late to jump on board. Still, that might not be the case.
Lifetime, data from Google Finance shows that since Blockmate’s OTC debut in July 2022, MATEF stock gained a little over 10%. If the underlying business gets moving, shares could really fly. Moreover, the incoming Trump administration may be a bonanza for decentralized ecosystems. With Trump’s crypto-friendly posture, Blockmate could tag along for the ride.
Look at nuclear energy specialist Cameco (CCJ). I laid out the ancillary bullish case and look, it’s been screaming. I also made a similar argument for financial technology firm Block (SQ) and so far, the entity has responded well.
Paying Attention to the Details
Recently, Blockmate announced that Hivello — one of the firm’s subsidiaries — has launched a beta version of its passive income application. Basically, the quick-and-dirty summary is that this app allows users to earn money by leveraging their unused computer power to contribute to a decentralized network of digital infrastructure.
Per the accompanying press release, Hivello helps simplify participation in decentralized physical infrastructure networks (DePIN) for beginners. Users can earn passive income by incorporating their computer’s resources to support decentralized systems. Best of all, people can participate without needing technical blockchain knowledge.
In other words, Blockmate is opening up the financial benefits of blockchain technologies to the layperson. Such a platform may have encountered friction under a presidential administration less sympathetic to digital currencies. But with President-elect Trump hammering home a message of deregulation and decentralization, MATEF stock just might be enticing enough.
Don’t get me wrong: this is risky “AF” as the kids like to say. But if there’s a time for such speculation to thrive, I would imagine that this administration is exactly that.
