Home / Crypto Currency / Bitcoin Bounce: Overstock Shares Surge on Crypto Pivot Rumors

Bitcoin Bounce: Overstock Shares Surge on Crypto Pivot Rumors



Following news that Overstock founder Patrick Byrne is selling the company’s retail business to focus on its blockchain offering, shares of Overstock have surged a massive 23.26 percent to end the day at $20.93.

CCN earlier reported that Byrne decided to sell the retail business based on a conviction that tZero, the ICO backed by Overstock’s blockchain investment arm Medici Ventures has “multi billion dollar” potential.

Byrne’s Audacious Gamble

The company, which rode the initial internet business wave to become one of the world’s most recognised names for selling furniture and jewelry online is now in the process of reinventing itself as a blockchain startup accelerator through Medici. This, however, has come at a significant financial cost.

Over three years after backing tZero, the startup is yet to launch commercially, while costing Overstock millions of dollars every month alongside several other blockchain-based startups supported by Medici. Byrne has consistently remained steadfast in his belief that the startups will not only become successful but will form the core of Overstock’s future. This is also helped by the fact that Overstock is sitting on a substantial pile of cash in cluding more than $130 million raised in the tZero token sale.

In a year that has seen Overstock’s share price fall 66 percent to date in line with the bearish performance of the crypto market, Friday’s announcement saw a 23 percent spike from just about $18 to more than $20.

Source: Tradingview

Overstock’s Blockchain Gamble

Based in Salt Lake City, Medici has taken in more than $175 in investment from Overstock since its launch in 2014, but it is yet to break even. According to records, the company lost about $39 million between Q1 and Q3 2018 in addition to a net loss of $22 million in 2017. Its parent company is also losing money, having recorded a net loss of $163 million between Q1 and Q3 2018, but driven by its founder’s passion for blockchain, it continues to invest huge amounts in the blockchain space based on a belief that blockchain technology is set to become a global standard.

One of Medici’s most notable investments is in Voatz, a blockchain-based smartphone app for voting. The company also has investment positions in a variety of blockchain projects around the world including a digital property rights startup in Rwanda.

Publicly, the company disavows bitcoin and cryptocurrencies as the main driver of its business, with Byrne telling investors in September that it does not hold “significant. bitcoin holdings. Despite this, Overstock’s share price has sharply correlated to the market performance of bitcoin, surging more than 400 percent from bitcoin’s 2017 bull run to date.

Featured image from Shutterstock.

Get Exclusive Crypto Analysis by Professional Traders and Investors on Hacked.com. Sign up now and get the first month for free. Click here.
Read more

Check Also

XRP Price Reaches $0.29 Again Following Fake Amazon Rumor

The current hourly cryptocurrency charts look incredibly weak, which means most cryptocurrencies will see another retrace in the coming hours. Until that happens, there is still some positive momentum where the XRP price is concerned. Although it hasn’t reclaimed the $0.3 level just yet, there is some positivity among community members. That sheer optimism can usually go a long way in this rather volatile industry. XRP Price Inches Higher It is quite interesting to keep an eye on the value of XRP during this bearish year. This asset has been beaten up quite severely, yet it seems to come up stronger every single time. It is also one of the more resilient markets to date, even though it can’t escape the gravitational pull of the world’s leading cryptocurrency these days. Over the past 24 hours, however, there has been an interesting XRP uptrend on the charts. The 2.2% gain in USD value is promising, as it pushes the value to $0.29 again. This is still a hair short of retaking $0.3, although this current price is seemingly more than acceptable as well. There is also a 0.2 uptick in the XRP/BTC ratio, albeit that is almost negligible. There is another rumor swelling when it comes to XRP. More specifically, some sources – wrongfully -assume there will be a partnership between Ripple and Amazon to push the usage of XRP forward. Since neither company has made any official statements in this regard, it is evident those rumors are nothing more than just that. It creates some excitement, albeit it may not necessarily materialize anytime soon, if ever. What is genuine, however, is the Binance XRP buy wall which materialized just a little while ago. It was valued at a total of $1,1m, which is very significant bullish pressure first and foremost. It is not exactly common for such massive buy orders to stack up on regular exchanges, although this may very well be a fake order to create some artificial momentum. That's a buy wall on @binance of $1.1m right now. Live. #xrpcommunity #xrparmy #xrpthestandard #cryptocurrency #crypto #RippleNet #XRP #xRapid pic.twitter.com/GC6mf7xXN0 — XRP_Canada (@XRP_Canada) December 16, 2018 When looking at the technical fundamentals for XRP, it seems a bullish breakout is more than warranted. The asset is entering a narrowing channel and will either rise or decline in value in spectacular fashion. So far, the chart leans toward breaking out on the upside, albeit nothing has been set in stone just yet. Ripple #XRP Todo Listo Para Un Gran Brote En Las Próximas Semanas #criptomonedas https://t.co/nMfxVITVGQ pic.twitter.com/F7ylDhDLT9 — Americancripto (@americancripto) December 16, 2018 All current signs point toward further XRP price stability, which is never a bad thing for enthusiasts and investors. While some people would prefer to see a big uptrend materialize prior to New Year’s Eve, that seems highly unlikely. Nothing warrants a big bull run right now especially because the weekdays will usually wipe out any gains sustained throughout the weekend. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post XRP Price Reaches $0.29 Again Following Fake Amazon Rumor appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.