Regulation is quickly becoming a hot topic in the crypto-world.
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The unregulated, “Wild West” environment of the crypto market left investors wide open to fraudsters, scammers, and shady firms out to make a quick buck.
The technology of blockchain and Bitcoin is here to stay. But to bring value to investors, it’s going to need tighter rules and more responsible companies with their eyes on the future.
The crypto market, worth $450 billion, won’t disappear overnight. The next step will be figuring out how to establish rules, expectations and regulations for making the market work smoothly.
And one company is positioned to meet that need: Hashchain Technology Inc. (TSX:KASH.V; OTC:HSSHF)
This is a blockchain company that can do it all: mine coins, diversify investment in a variety of different crypto-currencies, and navigate the crypto marketplace.
But KASH is going a step further: it’s working on proprietary methods and new technologies to make compliance with new regulations easier.
At a time when state agencies are cracking down on the free-for-all within the crypto world, KASH is set to making earnings from crypto-currencies regulation.
Here’s five reasons to take a strong look at Hashchain Technology Inc.:
Last year, Bitcoin and blockchain was on everyone’s mind. The value of crypto-currencies was shooting through the roof, and everyone wanted in on the action.
Major papers ran multiple stories trying to explain what cryptos were, how the blockchain worked to facilitate crypto transactions without middle-men, and investors were offered dozens of opportunities to buy into new cryptos through initial coin offerings (ICOs).
Now, the view is a bit different.
Governments, banks and investors are all worried that the frenzy over Bitcoin and other cryptos was fed by fraud.
South Korea and China began considering bans on crypto mining, which is immensely energy-intensive and difficult to monitor. South Korea specifically wants to start licensing crypto-currency exchanges to bring trading under closer surveillance, in order to prevent fraud.
Authorities in the U.S. are worried about crypto-currencies being used to launder money, and want investors to start ponying up their taxes.
The crypto-currency Bitcoin has been accused of acting as a Ponzi scheme. Coinbase, the popular crypto market hub, has even been subpoenaed by the IRS to get information on its customers.
Both political parties have now called for tighter crypto regulations.
While a full ban on mining isn’t being seriously considered, it’s certain that the crypto marketplace is going to come under greater control in the coming months and years.
Hashchain Technology Inc is ready.
The company sees regulation of crypto-currency as the logical next step for the industry, and it’s taking steps to meet the new business conditions.
The company, which began as a crypto-currency miner, has acquired the assets of Node40, a blockchain technology and accounting software firm, for $8 million and stock consideration. The acquisition indicates KASH (TSX:KASH.V; OTC:HSSHF) is diversifying beyond its mining strategy.
The Node40 software, called Balance, reports transactions from major crypto-currency exchanges. Individuals on the blockchain trigger taxable events when they buy and sell crypto, but until now, no one was charting these events in a way that ensured regulatory transparency. The potential for fraud was huge.
With Balance at its disposal, KASH is providing tools to investors and regulators to account for transactions, providing up-to-date information on the crypto marketplace.
“The acquisition of the NODE40 Business,” said CEO Patrick Gray in the company’s press release, “is an important next step of creating a global blockchain technology company.”
Regulation is the company’s “niche,” and it’s what makes KASH “different from everyone else,” Gray told Oilprice.com.
Outside of its new approach to crypto regulation compliance, KASH (TSX:KASH.V; OTC:HSSHF) is a mining company with a fresh approach to the crypto marketplace.
The company currently has 870 rigs, with further acquisitions set to bring KASH to a total of 8.4 MW of crypto-currency mining capacity by the end of Q2 of this year.
What does it mean to “mine” bitcoin? Well, companies like KASH use massive amounts of computer processing power to verify bitcoin transactions, and gets paid in new “coins” which can then be bought and sold on the crypto market.
Even with the booms and busts in the price of Bitcoin, the profits from crypto mining can be immense.
Where gold mining only yielded an 11 percent return last year, investment in certain crypto-currencies can yield returns as high as 20,000 percent.
And KASH doesn’t put its eggs all in one basket. The company plans to diversify its crypto-mining operation, from the major coins like Bitcoin, Dash and Ethereum to a host of smaller coins, which have the potential to bring significant returns.
That means that KASH can profit from the market, regardless of the ups and downs, and as mining difficulty increases for any particular crypto, the company plans to maximize profits by shifting its mining power to different types of crypto-coins.
When KASH scales up from its humble beginnings, it has plans to be one of the biggest crypto mines in the business. And its close appreciation of regulation means it’ll be in an excellent position to work with government agencies who may start cracking down on the more undisciplined crypto firms.
With a small market cap, KASH could be set expand quickly.
Hashchain Technology Inc. (TSX:KASH.V; OTC:HSSHF)has a solid leadership team that will guide it through the transition in the crypto marketplace.
CEO Patrick Gray has already achieved tech success: his first start-up was sold to Xerox for $220 million. He was a recipient of Business Review’s “40 Under 40” award and he’s raised millions in start-up capital from investors.
Behind Gray, who provides the strategic vision for the company, there’s CTO Sean Ryan, co-founder of NODE40 and a blockchain expert. CCO George E. Kveton is a “lifelong dealmaker” with 20 years of experience in Fortune 500 companies. He’s signed deals in Israel, China and Silicon Valley.
The team at KASH aren’t the millennial millionaires who caught the media’s attention when Bitcoin took off last year – these are professional tech innovators, blockchain specialists and crypto-currency insiders who are taking the crypto revolution to the next stage, and are doing so in a responsible way.
While the price of Bitcoin may have dipped, the crypto-currency revolution has only just begun.
Investors learned that crypto-currencies are super volatile, prone to dramatic booms and busts, and offer plenty of opportunity for fraud.
But that hasn’t stopped innovators from continuing to develop the market. Branded corporate coins are starting to take off, and blockchain technology has been introduced in real estate, banking and shipping.
There are signs that even Wall Street is taking crypto-currencies more seriously. The price of Bitcoin, which sank below $6,000, has now
jumped back above $10,000, suggesting that interest is still very strong.Regulation won’t kill cryptos. Instead, it will make them more reliable and more secure from fraud.
KASH (TSX:KASH.V; OTC:HSSHF) is ready to take advantage of the need for order in the crypto market.
The company’s acquisition of Node40 means it’s positioning itself on the forefront of the regulatory swing in the crypto market, and the company’s mining vision truly sets it aside from the competition.
KASH is prepared for the next phase, and investors should take notice.
Other companies looking to revolutionize their industries:
By. Meredith Taylor
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Forward-Looking Information
Certain disclosure in this release, including statements regarding the performance of the Company’s current and ordered Rigs, and expectations regarding future operations may constitute forward-looking statements. These include that KASH will dramatically increase operations, that the 5,000 Rigs will be successfully ordered and delivered, the 5,000 Rigs will perform as expected by management and the timing, installation and performance of KASH’s current and ordered Rigs will be consistent with management’s expectations; that mining capacity will increase to 8.7 MW; that KASH will utilize its committed Montana facility space and increase capacity to mine 20 MW; that KASH will hold a diverse portfolio of cryptocurrencies through mining and otherwise; and that KASH’s software can become part of a regulatory push for regulation of cryptocurrencies. The forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, the risk that the 5,000 Rigs will not be successfully ordered or delivered from the manufacturer or, if delivered, not when expected by management, and the risk that the Company’s current and ordered Rigs will not perform as expected by management or that expected capacity is not achieved; that KASH may not earn cryptocurrencies through mining and may not be able to purchase them; risks related to changes in cryptocurrency prices, and the profitability of mining them; that cryptocurrencies will not increase in use as expected; the under-estimation of personnel and operating costs; that KASH will not receive required regulatory approvals for building new facilities, using power, or other aspects of its business; that cryptocurrency regulators don’t accept KASH’s accounting and other solutions; the availability of necessary financing; permitting of businesses that KASH intends to invest in; general global markets and economic conditions; uninsurable risks; risks associated with currency and cryptocurrency fluctuations; risks associated with competition offering better or cheaper solutions, attracting away employees or using tactics to drive out competition; risks associated with changes in the financial auditing and corporate governance standards applicable to cryptocurrencies; risks related to potential conflicts of interest; the reliance on key personnel; capitalization and liquidity risks including the risk that the financings necessary to fund continued development of KASH’s business plan may not be available on satisfactory terms, or at all; the risk of dilution through the issuance of additional common shares of KASH; the risk of litigation; the risk that KASH’s management and advisors may not contribute as much as expected to the company’s success; the risk and the risk that cyber-crime may severely damage the value of any or all of KASH’s investments. There may be many other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information.
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