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We’ve Found the “PayPal” of the Pot Industry
Here’s How You’ll Make Five Times Your Money in 24 Months
By Teeka Tiwari on November 20, 2017
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“Cryptocurrency is a solution searching for a problem.”
I can’t tell you how many times I’ve heard this criticism of cryptocurrencies and the blockchain technology underlying them.
The detractors are saying there is no immediate need for this tech.
Back in 1998, a small startup called Confinity faced similar criticism…
Most of you probably remember the Palm Pilot. It was a personal digital assistant (PDA) you could use to store contact information and calendar events.
The Palm Pilot was an immensely popular handheld device. More than five million were sold during the late 1990s.
Some consider the Palm Pilot the precursor to the smartphone. Its greatest legacy, though, may be Confinity.
Confinity started as a software and cryptography company in 1998. It had just invented a cool new way to move money using the Palm Pilot.
Nothing like that had existed before. It was revolutionary. And it was an utter failure.
Confinity had created a brilliant technology looking to solve a problem that didn’t exist yet. You see, at the time, nobody cared about transferring money using mobile devices.
Confinity would have failed had it not stumbled on another emerging market: online auctions.
Before 1995, the online auction market didn’t exist. It was a brand-new business facing brand-new problems.
In the mid-90s, buyers and sellers were transacting millions of dollars in online deals. But there was a problem.
Buyers didn’t trust giving sellers their financial information… And sellers weren’t big enough to qualify for credit card processing. So, they couldn’t collect online payments.
The whole online auction business model relied on personal checks and money orders delivered via U.S. mail. It took weeks for sellers to receive their money and for buyers to receive their products.
As inefficient as this new online market was, it was still booming. The industry grew from nothing to over $1 trillion in transaction volume in 2001.
The leader in this new space was a small two-person startup called eBay.
Seeing this new opportunity, Confinity pivoted.
The company abandoned its efforts to create a mobile payments software for Palm Pilot. Instead, it turned its efforts to online auctions.
Confinity created a software that made buying and selling online much easier.
Buyers could link their checking account to Confinity without sellers seeing their account information. And sellers too small to qualify for credit card processing could get paid immediately.
Confinity’s new service exploded. Confinity eventually processed 40% of eBay’s volume.
Today, Confinity is worth $88 billion. You know it by its “new” name—PayPal.
PayPal does more than process eBay payments. It’s grown into a global payments processor, processing over $354 billion per year… for 220 million clients… across tens of thousands of businesses.
A Booming New Opportunity in Legal Marijuana Payments
Just like the online auction market of the ’90s, there’s a booming new industry suffering from a payments problem: legal marijuana.
In this month’s issue, I’ll show you how an up-and-coming payment provider is positioning itself to become the PayPal of this exploding industry.
Over the next 24 months, we think this payment provider will grow in value by at least five times. That would turn every $500 into $2,500… and every $1,000 into $5,000… in the next two years.
At Palm Beach Confidential, we call this asymmetric-risk investing. It’s the strategy we use to take a trivial sum of money and convert it into life-changing wealth.
Before I tell you the name of the project, let me tell you about the industry it’s about to dominate… the same way PayPal dominated online auction payments.
Check out Our New Crypto Corner
We’ve recently renovated the entire Palm Beach Confidential Crypto Corner. If you have questions about anything cryptocurrencies, chances are you’ll find the answers there.
There, you can access our research and step-by-step videos on web-based wallets, hardware wallets, and other cryptocurrency services.
Today, 28 states and the District of Columbia have legalized some form of marijuana sales.
Analysts project the industry will rake in $6 billion this year alone. And the well-respected research firm Cowen expects legal cannabis sales to reach $50 billion by 2026—that’s a 700% increase.
American attitudes about legalized marijuana have changed radically over the years. According to an October 2017 Gallup poll, nearly 65% of Americans support legalizing marijuana. That’s a record high.
(For comparison, in 1996, only 25% of Americans supported legal cannabis.)
This legalization movement has been a bonanza for the 50,000-plus growers and the 3,189 marijuana dispensaries that have popped up around the country since 2012.
But this growth came with a dark side.
In 2013, three criminals kidnapped a marijuana grower in Fresno, California. They used a blowtorch to torture him and mutilated his genitals… all in a (fruitless) effort to uncover his hidden cash stash.
This gruesome example shows just how dangerous operating a marijuana business can be.
You see, marijuana sales are still illegal under federal law. And that means banks can’t accept deposits from cannabis-related businesses.
That has forced marijuana growers and sellers to hold stacks of cash—in some cases, floor to ceiling. That makes dispensaries juicy targets for criminals.
Aside from the obvious safety problems this poses for marijuana businesses, there is an economic one as well.
One industry insider I spoke with told me that cash-handling costs are eating as much as 30% of gross revenue for some dispensaries.
That means as much as 30 cents out of every $1 earned goes toward paying for guards, armored trucks, guns, surveillance gear, etc.
Although banks won’t work with marijuana businesses, some credit unions will. But the costs are prohibitive. They charge 3% on cash deposits.
In addition, credit unions demand a checking account fee of $7,500 per month. Even then, they place limits on how much cash they will accept from marijuana businesses.
As already mentioned, Cowen projects the industry to grow to $50 billion by 2026. There’s no safe or cheap way for the industry to process $50 billion in cash.
A change must be made.
Cryptocurrencies to the Rescue
Bitcoin would seem like a natural solution for the cannabis industry’s cash woes.
It’s secure, practically unhackable, and its fees are lower than using cash. However, bitcoin has one serious drawback… confirmation times.
Normally, it takes 10 minutes to confirm a transaction on the bitcoin network. That’s far too long to wait in a retail setting.
Imagine going to Wal-Mart to buy groceries… and the cashier makes you wait 10 minutes for your credit card to clear. That just wouldn’t work in a store where you’re doing thousands of transactions per day.
What the marijuana industry needs is a highly secure cryptocurrency that can process transactions immediately.
It should be easy to use. Plus, it must be integrated within the existing payment structure already used by cashiers and clerks.
The cryptocurrency that can solve this problem will become the PayPal of the marijuana industry.
We’ve identified a project that fills every one of the legal cannabis market’s needs. It’s cheap to use, it scales, and most importantly, it offers almost instantaneous confirmations.
Introducing the New “Commerce” Coin
The cryptocurrency that we believe the marijuana industry will turn to is known as a “commerce” coin.
This means the coin is designed for everyday transactions. That’s very different from bitcoin, which was designed as a store of value like gold.
The name of this coin is Dash (DASH).
Dash started as a privacy coin called XCoin. It then rebranded as Darkcoin before becoming Dash (an abbreviation of digital cash) on March 25, 2015.
Dash is a self-funding and self-governing project. It’s a new entity called a decentralized autonomous organization (DAO).
Unlike a corporation that has shareholders, management, and a board of directors, a DAO is governed by programmed rules.
Similar to bitcoin, Dash harnesses complimentary incentives that ensures miners, master node operators (I’ll explain what this is in a moment), and development teams all work together to constantly improve Dash.
Dash has a “treasury model.” That means a percentage of the mining reward (10%) goes into a treasury for the benefit of Dash. Improvements are proposed and the Dash community votes on what gets funded.
At this time, $1.75 million per month is flowing into the Dash treasury. So, you can see that Dash is incredibly well-funded.
On top of that, Dash has a unique governance structure that ensures no one party gets too much power. The people who mine Dash receive 45% of the mining reward.
The other 45% goes to the “master nodes.” Anyone with 1,000 Dash can “stake” (stake means to lock up like you would collateral against a loan) their coins and become a master node.
The master nodes vote on how the treasury is allocated and process instant payment and private payment requests.
Dash has a coin cap of 18.9 million. That means there will never be more than 18.9 million Dash coins. At this time, Dash has 7.7 million coins outstanding.
As of this writing, more than 60% of all Dash coins outstanding have been “staked.” When you stake your coins, you earn fees. But if you sell your coins, you lose your master node fees.
Here’s why that’s important…
Those staked coins are “off” the market. That means Dash’s actual “float” is only about 3 million coins. This means it doesn’t take much buying for Dash prices to start gunning higher.
Dash does have a core development team… But again, no one is in charge of Dash. Former McKinsey & Co. executive Ryan Taylor heads up Dash Core. He leads a team of 30 full-time developers and 20 part-time developers.
I’ve met Taylor and interviewed him several times. He’s got a crystal-clear vision of making Dash the No. 1 cryptocurrency payment platform in the world. And as I’ll show you, my research suggests he will pull it off.
I first recommended Dash on May 25 for our short-term crypto portfolio. Since then, we’re up about 200% on it.
But I think this is just the beginning. As I’ll show you, Dash is making moves that demand we place it in the long-term portfolio.
How Is Dash Different From Bitcoin?
The difference between Dash and bitcoin is like the difference between a bar of gold and a dollar bill. Both are money… but the paper bill is a lot easier to transact than the gold bar.
Dash has the secure and noninflationary features of bitcoin matched with the ease of paper money (more on that below).
Dash was originally created as a privacy coin. Even now, it retains privacy features such as “private send,” which obscures the sender and receiver of funds. But we think it’s a mistake to focus on Dash’s privacy roots.
Just as Confinity started out as a Palm Pilot app before pivoting to become PayPal, we see Dash’s real value in its pivot from a privacy coin to a low-cost, blockchain-based payment provider.
The combination of Dash’s governance, funding, incentive, and “instant send” (I’ll explain this below) features make it a truly revolutionary payment solution.
The economic benefits of switching from a cash-based payments system to a Dash-based system are just too compelling to ignore.
For example, one payment insider I spoke to referenced a marijuana dispensary generating $8 million per month in cash sales.
As I mentioned earlier, one of my industry contacts tells me the cost of handling all that cash can reach 30%. That means this dispensary is losing as much as $30 million per year just in cash-management costs.
By using Dash, this dispensary would be able to slash its cash-handling costs to just $3 million per year. That’s a $27 million cost reduction.
When your cost savings are that massive, the question isn’t whether you make the switch to Dash… but when.
Now you might be asking yourself: How can I be so sure that the industry will use Dash and not some other cryptocurrency?
That’s an excellent question, and I’ll answer it right now…
PayPal’s “edge” was its ability to send money instantly over email.
That ability allowed it to become the dominant payment choice of eBay users. Even after a slew of copycat payment providers launched, PayPal’s ease of use and “instant send” feature ensured its leadership position.
Even when eBay launched its own competing payment provider, it still couldn’t dislodge PayPal.
In fact, PayPal became so important to eBay’s business that eBay was compelled to buy PayPal just months after it went public in 2002.
There were three keys to PayPal’s success:
It was the first company to send and receive money instantly online.
It was the first payment provider on eBay.
It was the easiest payment service to use on eBay.
Dash is following PayPal’s playbook to a “T.”
The Power of “Instant Send”
One common complaint against cryptocurrencies is how long it takes to confirm payments. On an especially busy day, it can take hours to confirm a payment on the bitcoin network.
Dash solves this problem with a feature called “instant send.”
The “instant send” feature can provide six blockchain confirmations in less than one second. This allows a merchant to process Dash payments immediately.
At this time, no other major cryptocurrency can do this. This is the same “edge” PayPal enjoyed when it launched its instant payment over email.
The First Crypto That Will Be Accepted by Major Marijuana Dispensaries
On October 12, 2017, Dash announced a partnership with blockchain payments provider Alt Thirty Six.
This is big news…
Alt Thirty Six is a provider of payment software to marijuana payment processors.
The company has agreements with marijuana dispensary point-of-sale (POS) providers that cover more than 70% of the industry. That means Dash has the potential to get into over 2,200 of the nation’s 3,189 dispensaries.
Along with dispensary POS providers, Alt Thirty Six has agreements with IBM and IBM’s largest POS partner, Sirius Computer Solutions.
Alt Thirty Six is in the process of designing and delivering an end-to-end payment portal that will integrate Dash into the payment process.
This won’t just cover receiving payments; it will also cover paying vendors, utilities, employees, suppliers, etc… with transactions paid in Dash.
The First Crypto That Will be Easy to Use
You might be wondering why a vendor, employee, or even a dispensary owner would accept the volatility risk of cryptocurrency payments?
Alt Thirty Six already has a solution for this problem.
It has a built-in fiat (paper money) conversion feature. As soon as a customer pays in Dash, the merchant, vendor, or employee can elect to have it immediately converted into U.S. dollars.
Think of when you go to a foreign country and buy a meal with a debit card. Your U.S. bank doesn’t pay the merchant in dollars, right? It pays the merchant in local currency and debits your account for dollars.
Think of Dash as just another currency in which the payment processor is automatically converting the Dash into U.S. dollars as you spend it.
And just like using a debit card or credit card, all of this happens behind the scenes seamlessly.
Why Will Customers Switch From Cash to Dash?
It doesn’t matter how great Dash is, or how easy it is to use, if customers don’t embrace it.
So, how do you change people’s payment habits?
You pay them.
Think about it: If you’re losing as much as 30% of your profits to cash payments, wouldn’t it make sense to offer a 10, 15, or even 25% discount for using Dash instead of cash?
PayPal did the same thing to incentivize people to switch to its platform. It paid new users $10 to use PayPal and then paid $10 referral fees.
The results were amazing. Usage of the platform exploded from fewer than 10,000 registered users to over 15.4 million in 2002.
Once again, we see Dash following the PayPal playbook.
That’s because you will see a combination of incentives being provided by both the dispensary owners and Dash.
For end users, it’s an amazing deal. They get as much as 25% extra cannabis for free. It’s a no-brainer.
At each dispensary, there will be a Dash ATM. All a user needs to do is download a Dash wallet on their phone, buy some Dash from an ATM, and then scan their wallet at checkout.
So, let’s recap:
Dash is the only major crypto with “instant send” technology.
It’s the only major crypto positioned to be adopted by the major dispensaries.
And it’s the easiest crypto to use.
On top of all of that, Dash will be the only choice in the market for at least three years.
Let me explain…
Dash has negotiated a 36-month exclusive agreement with Alt Thirty Six. That means no other cryptocurrency can get on the Alt Thirty Six cannabis payment system for three years.
That is an enormous competitive “edge” that we expect will drive massive adoption of Dash in the legal cannabis market the way PayPal was adopted by the online auction market…
What’s It Worth?
One way we’ve used to gauge future value has been to track the number of users on the network. To measure this, we look at how many transactions have been run through the network. By analyzing usage, we can see trends of usage growth (or decline) take shape.
Let me be clear: This is not an exact science. However, we’ve found that the more a cryptocurrency is used, the more valuable it tends to become.
You can see in the chart below that, as transactions (usage) on the bitcoin, Ethereum, and NEO networks grew, so did the value of the cryptocurrency.
Over time, we’ve seen the same pattern emerge with Dash. Take a look at the chart below…
Alt Thirty Six is rolling out its Dash payment solution in beta form right now. Once the beta period is over, it’ll move it out to all its marijuana clients next year.
Once that happens, we’ll see a massive increase in the use of Dash.
If Dash follows the same path as BTC, ETH, and NEO did when their usage grew, then we’ll see a corresponding explosive move higher in the price of Dash.
To get an idea of value, we should look at PayPal.
PayPal was a failure until it found a market that desperately needed its solution. It took off when it filled a massive need: enabling fast payments for eBay users.
Before PayPal, sellers had to wait about seven days for a check to arrive. And buyers had to wait another seven days from when the check cleared before the product was shipped. The entire process could take weeks.
PayPal changed all of that.
With PayPal, the seller could be paid immediately online, and the buyer would get his goods in days instead of weeks. It was a win-win.
It was so critical to eBay’s success that eBay paid $1.5 billion to buy the whole company just months after it first went public in 2002.
Today, PayPal is an independent public company with an $88 billion market cap.
We see an investment in Dash as akin to buying PayPal when it was still a private company in 1998. We think the legal cannabis community will embrace Dash, and it will become the most valuable payment rail in the cannabis industry.
Within five years, Dash could be processing literally tens of billions of dollars in cannabis-related trade.
Over the last 12 months, Dash’s average daily volume has ballooned from under $1 million per day to over $50 million per day.
In the last two weeks, we’ve seen volume surge to as much as a half-billion dollars per day. Over the last 12 months, we’ve seen the price of Dash rise from $9.50 to over $420. The market cap has gone from $78 million to $3.3 billion.
We think these are still the early days. Over the next five years, we expect the surge in transactions will lead to a corresponding surge in trading volume that will result in further geometric growth for Dash.
Over the next two years, we think the market cap could hit $20 billion.
That would put the price of Dash at about $2,600.
Over the next five years, we think Dash is worth north of $100 billion. That will take the price of Dash to above $12,000 per coin.
What Is B.I.T.S. Saying?
B.I.T.S. is designed to automatically alert us to ideas when investor sentiment is low. We call this buying at the bottom of the fear curve. You can read how the system works here.
B (Business Value Ratio): The business value ratio measures the daily dollar value of all transactions compared to the total value of the cryptocurrency. When the business value ratio dips below its average, it’s a sign the crypto token is cheap.
We can see that the business value ratio is below its baseline (dotted black line). This tells us we are buying in when sentiment is low. We call this buying at the bottom of the fear curve.
I (Insiders): When the business value ratio is flashing, I go to my insiders.
Across the board, my insider network is impressed with the way that Dash has pivoted from being a privacy coin to a “commerce” coin. They love Ryan Taylor (the leader of the Dash Core team) and all of them are looking to add elements of Dash’s corporate governance model to their own projects.
Consider the Insider box ticked.
T (Technicals): We use technical analysis to tell us when the selling is over. The Relative Strength Index (RSI) measures how strong a cryptocurrency is based on its previous trading history. If today’s price is higher, the RSI moves up. If today’s price is lower, the RSI moves down.
The RSI is above its median. That means the bulls are in control.
S (Social Media): Our research has shown that before a cryptocurrency takes off, we always see a surge in “chatter” on our social media tracker.
As you can see, the social media chatter is breaking out to new highs and giving us a clear buy signal.
Bringing It All Together
PayPal leveraged its exclusive relationship with eBay to become a payment powerhouse. Even when other payment options became available, people stayed loyal to PayPal because it was so easy to use.
We think Dash is taking a page out of the PayPal playbook and will become the dominant payment processor in the legal cannabis sector. From there, we expect it will leverage its dominance in pot payments to launch itself as a major player in cryptocurrency payments.
The time to take action is now, before Dash becomes a household name the way PayPal has.
Remember: Because these trades have massive upside, you can keep your positions small and still make significant gains. If you’re a smaller trader, we recommend putting $200–400 into each trade or $500–1,000 if you’re a bigger trader.
Action to Take: Buy Dash (DASH)
Buy-up-to Price: $600
Stop Loss: None
Buy It On: Bittrex, Binance
Store It On: Jaxx, Ledger Wallet
Where to Be Invested Now
Navigating the Cryptocurrency Rollercoaster
By Teeka Tiwari and Greg Wilson
If this is your first week in cryptocurrencies, you likely feel that you’ve stepped onto a rollercoaster.
Don’t fret, we’ll get you up to speed on what’s going on. And we’ll show you how to use our service to maximize your profits.
Early last week, big news hit the cryptocurrency newsfeeds when SegWit2x was cancelled. SegWit2x, also known as the New York Agreement, was the plan to help bitcoin scale by increasing its block size from 1MB to 2 MB.
Due to a lack of consensus, on November 8, the developers behind SegWit2x canceled the hard fork.
After SegWit2x was cancelled, Bitcoin Cash (BCH) took off. As you may recall, BCH split from bitcoin on August 1 when bitcoin implemented the first SegWit upgrade.
BCH is similar to bitcoin, but it plans to scale using larger block sizes. Bitcoin, on the other hand, plans to scale with off-chain solutions such as the Lightning Network.
At the time BCH initially split from bitcoin, it had little support. It started with just one miner and limited exchange and wallet support.
A lot has changed since then. It’s now available on the major exchanges and has support from over a dozen wallets. Other services and projects are using BCH as well.
And let’s not forget: When SegWit2x was canceled, a potential competitor was eliminated for BCH.
For these reasons, we added BCH to our short-term cryptocurrency trading portfolio on November 13.
Keep in mind, we’re not saying BCH will take over bitcoin as some headlines today are claiming.
But BCH is a player. We’re seeing money flow into its ecosystem. And we can’t ignore its recent rapid growth in hashing (processing) power.
Switching gears, we wanted to quickly review how new readers can take advantage of our services to save time and maximize their profits.
If this is your first foray into cryptocurrencies, you’ll want to head over to our renovated Crypto Corner. There, you can access our research and step-by-step videos on web-based wallets, hardware wallets, and other cryptocurrency services.
Finally, it’s crucial that you understand how we handle risk.
Make sure to check out our latest video update. It goes over our technique of asymmetric-risk investing and how we use rational position sizing to maximize gains and minimize losses.
We’re raising the buy-up-to price on bitcoin to $10,000.
Action to Take: Buy bitcoin (BTC) up to $10,000.
The Ethereum community recently hosted DevCon3 conference. There were over 2,000 attendees, triple the number from the year before.
As co-creator Vitalik Buterin told the crowd, “Scalability is probably problem No. 1.” To that end, Vitalik presented his vision for scalability, which includes a technique called sharding. In a nutshell, it breaks down data into smaller pieces, enabling the system to handle more transactions.
The message from DevCon3 was clear. The community remains committed to building and scaling the Ethereum network.
Action to Take: Buy ether (ETH) up to $400.
NEO’s rebranded website went live October 30. You can check it out here.
The City of Zion, the open-source global NEO developer community, announced the Neon Meta Exchange (NEX) in October. It’s a decentralized exchange that will be built on top of the NEO network. It plans to have a token sale in late 2018. It will be the first to use NEO’s token-sale legal framework.
The City of Zion team continues to grow rapidly with over 6,000 members. It’s been so successful that the NEO Council agreed to fund its efforts for the next five years.
You can now store NEO on Ledger hardware wallets. Using Ledger, you can still claim your GAS.
Action to Take: Buy Neo (NEO) up to $22.
Monero now has a mobile app called Monerujo. It’s available for Android users, but there’s no Apple version to date. (Please be aware we have not tested the wallet yet. If you check out the wallet, exercise caution and test it with small transactions.)
Action to Take: Buy Monero (XMR) up to $60.
Steem Power (STEEM)
Steemit just finished SteemFest, its annual conference held in Lisbon this year. Leading up to the conference, Steemit rebranded its website with a slick new design.
We can expect more developments coming out of Steem. One is called AppBase. These plug-ins can be deployed faster, are easier to maintain, and don’t require a full download of the entire blockchain.
Steemit expects to release a new mobile wallet before the year is out. And it also introduced Sndbox, an incubator program for content creators. Sndbox helps creators leverage the blockchain and earn rewards for their content.
Action to Take: Buy Steem Power (STEEM) up to $2.50.
In the past month, Lykke added an Ethereum private wallet and Ethereum limit orders to the Lykke Wallet. It supports all the ERC20 compatible tokens as well.
The wallet now includes market order protection. When an order significantly differs from the market price, you’ll now get a warning message.
For those who might have held bitcoin in their Lykke wallet prior to the BCH fork, its trading wallet now has a BCH withdrawal feature. The feature will be added to private wallets soon.
Action to Take: Buy Lykke (LKK) up to $0.10.
The first game using the Peerplays blockchain, HelmBet RPS, is now live. It’s a simple rock-paper-scissors game and uses PPY tokens.
Peerplays continues to advance Bookie, its sports betting app. It’s currently in beta testing and adding new testers.
Finally, we can expect a revamped Peerplays website by the end of November. The site will act as a community hub for all things Peerplays.
Action to Take: Hold Peerplays (PPY).
Recently, Factom added Kdb+, a relatively unknown programming language. But the addition is significant because Kdb+ is used by all the top financial institutions to handle large amounts of data. This will make it easier for financial institutions to adopt Factom’s Harmony product.
Action to Take: Buy Factom (FCT) up to $50.
Storj announced two new partnerships over the past month. The first is with BLOCKv, a company that creates smart virtual objects. The second is Loomia, a company that connects objects with the blockchain.
What’s unique about Loomia is that data from your objects can be sold on the company’s data exchange. Both projects will be storing their data on the Storj platform. Also during the month, the STORJ token was listed on the Poloniex and Qryptos exchanges.
Action to Take: We’re raising the buy-up-to price on Storj (STORJ) to $1.
Ethereum Classic (ETC)
Chinese exchanges Huobi and Okcoin recently launched Huobi Pro and Okex, respectively. These are peer-to-peer platforms with international offices, and thus, out of Chinese regulators’ reach. Both added ETC trading, giving its price a recent boost.
Action to Take: Buy Ethereum Classic (ETC) up to $25.
During the month, Ripple launched its RippleNet Accelerator Program using $300 million from its XRP holdings. The program will offer rewards to financial institutions that are first in their markets to process and promote commercial payments on RippleNet. There are now over 100 financial institutions using the network.
Action to Take: Buy Ripple (XRP) up to $0.30.
Patient readers were well-rewarded this month. We finally saw OMG drop below $6, giving new subscribers an opportunity to buy in as low as $5.75. Congratulations to all of you who “Let the game come to you.” As of this writing, OMG is back above $8.
OMG announced partnerships with Japan’s Global Brain and the Hubii Network. Global Brain is a venture capital firm. They will launch an accelerator program to work on the OmiseGo ecosystem. Hubii Network is a blockchain-based content marketplace that serves 50 million customers and will now be using OmiseGo for payments.
Action to Take: Buy OmiseGo (OMG) up to $6.
ZenCash is close to launching SecureNodes. These nodes are critical for private transactions, private communications, and anonymous publishing using the Zen blockchain. Remember, ZenCash is not just private transactions. Its entire system is private. The SecureNode system ensures this privacy.
Action to Take: Buy ZenCash (ZEN) up to $20.
Short-Term Cryptocurrency Portfolio
Iconomi, the platform for digital asset investments, finished the third quarter with a book value just shy of $120 million. As we write, Iconomi’s market capitalization is just $94 million, meaning it’s trading at a 22% discount to its book value. The company continues to execute on its plan to bring digital asset managers to its platform. It now has 14 cryptocurrency funds trading on its platform. Iconomi also released the official Android Iconomi app. (One is already available for Apple.)
Action to Take: Buy Iconomi (ICN) up to $1.25.
Lisk is in the midst of rebranding as it looks to reposition itself in the cryptocurrency ecosystem. There’s no official date on the rebrand, but it’s expected to happen before the year is out.
Action to Take: Buy Lisk (LSK) up to $1.50.
Basic Attention Token (BAT)
Last month, BAT upgraded its Brave Payments system. The system now has an integrated BAT wallet. You can fund your wallet with a variety of cryptocurrencies such as bitcoin, Litecoin, and Ethereum. You can also fund it with local currencies through BAT’s partner Uphold.
Action to Take: Buy Basic Attention Token (BAT) up to $0.35.
This month, Bitshares released a new version of its core client. In this update, the voting area was completely rewritten. Other changes include making the order book display more user friendly, improving the help section, and making the portfolio tab sortable.
Action to Take: Buy Bitshares (BTS) up to $0.40.
Bitcoin Cash (BCH)
We added Bitcoin Cash to the short-term cryptocurrency trading portfolio on November 13. You can find the buy alert here.
Action to Take: Buy Bitcoin Cash (BCH) up to $1,400.
Spark Therapeutics (ONCE)
As we’ve been detailing, Spark recently submitted its license application for voretigene neparvovec (brand name Luxturna), its gene therapy for inherited retinal diseases.
Last month, a Food and Drug Administration (FDA) panel review voted 16–0 to recommend the agency approve Luxturna. The stock popped on the news, and we sold half our position. You can find the profit alert here.
Next up for Spark is the FDA’s decision, slated for January 12, 2018.
Action to Take: Hold Spark Therapeutics (ONCE).
Invitae reported earnings in early November. For the quarter, the company lost 57 cents per share. The Street was expecting a loss of 55 cents. Invitae originally fell in after-hours trading but moved sharply higher the next day.
Revenues grew by 185% from the year before. And the cost per test continues to drop significantly, down 33% from the same time last year. Invitae continues to grow rapidly and has plenty of cash on its balance sheet ($105 million) to carry it through 2018. The company still plans to be cash-flow breakeven by the end of 2018.
Action to Take: Buy Invitae (NVTA) up to $12.
Sandstorm Gold (SAND)
Sandstorm reported third-quarter results in early November. It sold 14,293 gold equivalent ounces, up 13.5% from a year ago. The cost per ounce dropped 3.5% to $246. And it reported near-record cash flows of $11.9 million, up 15.5% year over year.
It also made a deal with Ross Beaty, selling $18.2 million in debt and equity it owns of Trek Mining. The deal was done so Trek Mining, NewCastle Gold, and Anfield Gold could combine to form a new company called Equinox Gold.
The deal has two benefits for Sandstorm. First, the cash proceeds can be used to fund new royalty agreements. And second, this is good for the Aurizona property owned by Trek, in which Sandstorm has a royalty. The new company will have the capacity to get the property producing again.
Action to Take: Buy Sandstorm Gold (SAND) up to $8.
Dynacor Gold Mines (DNG.TO)
Dynacor reported third-quarter gold production of 20,521 ounces, up 12.8% from the same period a year ago. It’s still on target to reach its full-year production targets.
Its Veta Dorada plant is close to running at full production of 300 tonnes per day. Dynacor expects to be at full capacity by the end of the year. For 2018, the company plans on increasing the plant capacity to 360 tonnes per day.
Action to Take: Buy Dynacor Gold Mines (DNG.TO) up to C$4.
Name Symbol Buy Date Curr Price Return Yield Stop Loss Action
Connecticut Water Service CTWS 01/08/2014 $60.78 85.4% 1.9% 17.5% Trailing Buy up to $35
Sandstorm Gold Ld SAND 07/22/2016 $4.47 -13.5% 0.0% 52.3% Trailing Buy up to $8
Dynacor Gold Mines DNG-T 08/19/2016 $1.87 -34.4% 0.0% 50% Trailing Buy up to C$4
Orezone Gold ORE-V 10/21/2016 $0.68 -9.3% 0.0% 50% Trailing Buy up to C$0.75
SPARK THERAPEUTICS ONCE 12/22/2016 $72.72 53.6% 0.0% 50% Trailing Buy up to $60
Invitae Rg NVTA 01/19/2017 $8.39 5.5% 0.0% 50% Trailing Buy up to $12
Name Symbol Buy Date Curr Price Return Yield Stop Loss Action
Bitcoin BTC/USD 04/18/2016 $8232.79 1823.5% 0.0% None Buy up to $10,000
Ether ETH/USD 04/18/2016 $365.85 3965.0% 0.0% None Buy up to $400
Monero XMR/USD 09/15/2016 $135.83 1505.5% 0.0% None Buy up to $60