Bitcoin: A Year ASX Journey and 2020 Outlook

  • Jan 08, 2020 AEDT
  • Team Kalkine
Bitcoin: A Year ASX Journey and 2020 Outlook

Australian Stock Exchange (ASX) witnessed delisting of Bitcoin companies in the year 2019. The price of Bitcoin fell dramatically by ~83% in a year from the highest USD 19187.78 to USD 3193.78 between December 2017 to 2018. The prices, however, recovered later and reached the last maximum in June 2019 at USD 12920.54. Consequently, prices are on downtrend.

Presently, the price of Bitcoin is around USD 8330.15 as of 8th January 2020 as shown below.

Source: Thomson Reuters

To know more about Bitcoin, please read Bitcoin for Beginners: 5 things you need to know

“During last year many suspensions and delisting of companies occurred on the Australian Stock exchanges”

Few Companies which Suspended or Delisted On ASX include:

  • Mobecom Limited (ASX: MBM) The stock of MBM was suspended due to the unwillingness or inability to comply with ASX Settlement Operating Rules related to the suspect of transaction breaches of chapter 10 of the listing rules.

  • First Growth Funds Limited (ASX: FGF) – The company was removed from the official list of ASX at the closing day of 4th December 2019 according to a request by the company to move to the secondary Canadian market.

  • YPB Group (ASX: YPB)YPB and FGF formed Memorandum of Understanding (MoU) to establish a new digital token and announced to shareholders that they had received ASX approval to issue the digital currency. However, this explicit or false declaration led to the substantial examining by the ASX. For this, the stock was suspended but eventually restored by the YPB. The stock last traded at $0.004 on 7 January 2020.

  • Iot Group (ASX: IOT) IOT voluntarily suspended from the listing due to the pending announcement related to the acquisition transaction. Later, the company also did not pay annual listing fees for FY 20, which further halted the securities from official quotation before the commencement of trading on 22nd August 2019.

Why Companies’ Voluntary Suspending or Delisting Matter?

“The companies are voluntarily delisting or halting trading on ASX and preferring the bourse market”

For example, Byte Power Group (ASX: BPG) securities were suspended on 22nd December 2017. If the resolution with the ASX is not met until 31st January 2020, the company will be removed from official list on the start day of 3rd February 2020. However, instead of resolving the , Byte Power X Singapore Pte Ltd - a wholly-owned subsidiary of BPG, launched its cryptocurrency exchange in Singapore.

Is Tumbling Bitcoin prices or ASX Strict Norms a matter of concern for the Bitcoin Players?

The companies are either moved to different stock exchanges or planning to move due to ASX regulation related to the cryptocurrency-related activity.

The heat of bearish market due to the horrific falling of price was not enough that the ASX released new compliance update relating to cryptocurrency, citing its stance for Simple Agreements for Future Equity and Simple Agreements for Future Tokens, making the companies liable to answer the queries related to initial coin offerings and initial exchange offerings who expect to list on ASX.

With the compliance procedure in place, ASX aims to recognise that the company has apt operations and structure and will comply with all the legal requirements in Australia and all other jurisdiction of the business. And importantly, all the proper disclosures should be made to the investors related to the cryptocurrencies risk or crypto-assets and even regulatory risk.

Is there any company which endured the heat of the ASX?

DigitalX Limited (ASX: DCC) is one such ASX listed company which has sailed through the storm of plummeting prices with no suspension of stocks. Alhtough, the share price of DCC has fallen by ~91% from a maximum in January 2018 to AUD 0.032 on 7th January 2020.

To facilitate the Bitcoin investment, DCC launched less complicated “DigitalX Bitcoin Fund”.

To introduce the asset management product to the market, the company will seed money by swapping its own 215 bitcoin interest to the equivalent holding in the Fund. For the same, it has planned to invest almost ~AUD 2.75 million i.e. AUD 12800 price per bitcoin.

The major motive behind the launching of the Fund is to reach to the critical masses and benefit from the management fees receivable from the Fund. It will help funds to grow under management and ensure the rapid development of the DigitalX Bitcoin Fund.

One small cap crypto company also withstood the pricing heat -Fintech Chain (ASX: FTC).

The Outlook 2020

The future of Bitcoin seems to be unpredictable in the future but is continuously tracked due to the several worldwide new projects venturing into the market like Facebook Libra cryptocurrency and Chinese government-backed digital currency in crypto Yuan.

This initiative is expected to bolster the blockchain sector from digital currency to smart manufacturing, credible source mapping in supply chain management and digital asset trading.

The market of Bitcoin will be strongly ascertained by the success of the above initiatives along with proper disclosure of risks associated with digital currency to help investors against the gambit, which might move the market toward Bullish. The proper guideline and disclosure will not only help in getting investors confidence but also protect against the illegal activity and the same concern has been already shown by the US Senator.


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