30. September 2021 | 22:51 CET
BIGG Digital Assets: When a growth machine goes mainstream
When new technology catches on, regulation tends to lag behind. In the financial sector, the relevant authorities must approve new products or processes. Otherwise, investors quickly find themselves operating in a gray area. Blockchain technology and cryptocurrencies have been experiencing increasing regulation for several years. Nerds and activists of the first hour fear the independence of the currencies, and investors see the chance for new investment opportunities. In some cases, crypto is already considered a new asset class today. Canadian blockchain company BIGG Digital Assets received welcome news from Canadian regulators today. Netcoins, BIGG's wholly-owned subsidiary, became a regulated crypto exchange in Canada today. This makes BIGG Digital Assets the only listed Company in Canada to offer access to a regulated trading venue for digital currencies based on blockchain technology. So what does this mean for the stock?
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ISIN: BIGG DIGITAL ASSETS INC. | CA0898041086
Netcoins as a regulated growth powerhouse
The Company emphasizes that it has more extensive opportunities to actively promote its trading venue thanks to the trading license. Also, word from Canada is that unregulated competitors are facing increasing headwinds. This mixed situation should accelerate the growth of Netcoins even more. Already in the past months, the platform has steadily developed and is consistently growing in double digits. In the second quarter alone, Netcoins made 24% more revenue. Measured against the previous year, the growth amounts to around 2,000%. In the second quarter, the number of users climbed by as much as 40% compared to the previous quarter. For the year as a whole, the number of users increased by an impressive 1,880%.
Security business alone is a million-dollar business
With regulators now giving BIGG the green light and BIGG being a regulated crypto exchange in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Prince Edward Island and Nova Scotia, professional market participants, in particular, are likely to opt for Netcoins. Since the license also comes with the possibility of extensive marketing efforts, retail investors who previously had no points of reference to cryptocurrencies should also become more aware of Netcoins. For BIGG's stock, today's news is a milestone. Having a regulated trading venue in its portfolio should also boost its other businesses, which offer transaction security and methods for regulatory oversight of the crypto market. Just recently, Mastercard reached out to a direct competitor of BIGG and acquired the Company. Although the parties have agreed not to disclose the purchase price, there is much to suggest that the price is at least in the range of BIGG Digital Assets' current market capitalization of around EUR 180 million.