The world of cryptocurrency moves at an alarming rate. Not only do traders monitor how things are hour to hour as opposed to day to day, but news can break and shake the industry. Riot Blockchain have announced that they are to launch a cryptocurrency exchange. What does this mean for the already heavy competition in the Bitcoin market and should you trade on a Riot Blockchain cryptocurrency exchange?
Who are Riot Blockchain?
Riot Blockchain have been on the crypto scene since moving out of biotech and were known as Bioptix Inc. But what’s interesting is that their stock prices began to surge after the announcement of their rebranding. Days before their name change from the biotech company that made diagnostic equipment, their stock value rose 50 per cent. Their stock prices rose to be the highest intraday trading the company had seen since January 2015. Investors reward heavily when companies make the move into the world of blockchain and cryptocurrency, which is regularly regarded as the future of digital and a worthwhile investment. The company’s new mission to buy and invest in aspects of blockchain – including Bitcoin (BTC) – but their main aim is to develop a new crypto exchange.
What Would a Riot Blockchain Exchange Look Like?
Riot Blockchain were regarded as being one of the first on the scene at the start of the blockchain bubble. So it makes sense that the biotech company would form a subsidiary, RiotX, in order to create a cryptocurrency exchange. Bitcoin and its fellow cryptocurrency coins are continuing their rise as a recognised currency and a recognised trade. RiotX has registered itself to be a CFTC-registered futures-introducing broker, which means it is legally able to go ahead with plans for the exchange. But, it looks like there could be a spoke in the wheel already. Like many other exchanges available, Riot Blockchain would offer a similar service, allowing trading of cryptocurrency with the exchange as the intermediary.
Source: @blockchaincamp1 via Twitter
Why Have CoinSquare Backed Out?
Originally to be powered through CoinSquare – of which Riot Blockchain own 12.9 per cent of shares with a CAD$13.9 million buy-in earlier in the year – the deal fell through leaving Riot Blockchain and RiotX searching for other investors. The deal promised $485,000 and 450,000 of Riot common stock, plus a 9.9 per cent stake in RiotX Holdings. It’s not yet clear why CoinSquare decided to cancel the intended deal – though, the move places RiotX and the cryptocurrency exchange in a questionable zone. No doubt RiotX will continue their disruptive life in the world of cryptocurrency by finding another partner and continuing to break into the industry.
Exchanges and investment platforms for cryptocurrency are already rife in the market. There are countless opportunities for investors and traders to get a slice of the crypto pie. Investors of every skill level have a platform designed for them. New exchanges are constantly setting up and this kind of shake to the industry is what helps keep the blockchain industry growing – and adds to the volatile nature of it.