The implementation of new money – music to the ears of Equals Group
29th July 2021 |
Would you like a job?
Do you have a “proven track record of creating a strong vision and roadmap and successfully delivering results”?
All you need is:
- A bachelor’s degree
- 10+ years of experience in business development or technology
- Excellent written and verbal communications skills…
… and a “Deep understanding of the digital/cryptocurrency ecosystem and related technologies”.
If that sounds like you, then head over to Amazon Jobs. It’s hiring!
Specifically, it’s looking for a “Digital Currency and Blockchain Product Lead”.
This isn’t saying Amazon is imminently about to accept bitcoin on its platform.
What it does tell us is that Amazon has plans to explore the potential of cryptocurrencies or, more precisely, how it can utilise digital currencies, cryptocurrencies and blockchain technology to offer new or better products to customers.
In our view, this naturally extends to accepting and utilising cryptocurrencies as payments through its products and platforms.
It also means we could be looking at a native Amazon digital currency as well.
Of course, this isn’t of great surprise to us.
In fact, in September 2013 I wrote about how companies like Amazon are dipping their toes into new kinds of payments.
The shape of global payments is changing. The current state of world economies is shaky at best. Companies like Facebook, Google, and Amazon are dipping their toes into payments, financial services and money. It’s the perfect storm for a complete revolution in the global financial system.
We’ve said for some time that what you think about money is going to be very different in five to ten years’ time. It’s all beginning right now. This is just the beginning. There is a shift underway, and there will be opportunities to make money from it… while money still exists.
That “revolution” we alluded to is the crypto revolution. And it’s playing out exactly as we expected.
The speed at which this change will take place is only going to accelerate as the global infrastructure, the “rails”, of which payments and money can flow around the world is now starting to truly join the revolution.
For example, a report by CoinDesk on 22 July 2021 explained that Stellar Foundation, the non-profit organsiation behind the blockchain network Stellar Lumens (with the native XLM crypto token), is seeking to acquire the billion-dollar money remittance giant, MoneyGram International (NASDAQ:MGI).
MoneyGram is the second largest money-transfer provider in the world. It focuses on a range of payment options, particularly remittances.
A decision is yet to be made on the acquisition.
Nonetheless, it is another example of how the new money and traditional money worlds are starting to intertwine.
Companies are beginning to understand the potential of cryptocurrencies and blockchain networks. As such, they are looking at progressive, innovative ways to become involved.
The international payments platform Equals Group (LSE: EQLS) has shown its desire to integrate into the new money system, which is one of the core reasons we decided to bring this stock into our buy list recently.
It announced a deal with Tap Global Ltd. (a regulated and licensed crypto asset application developer) in March 2021, meaning that Equals will now be providing crypto liquidity in its payment services.
This idea of the convergence between two money networks (new and old) has created a new and potentially profitable opportunity, which Equals is seeking to exploit.
It now has the best of both worlds; its intricate, traditional-system payments platform, and now, the new system.
Although it’s still very early days, we are excited about the potential that this brings to Equals.
It’s also a fundamental reason why Mode Global (LSE:MODE) is also in our buy list. Together these are two companies that we believe gives exposure to the “new money” systems being built and developed today.
It means that investors that perhaps don’t want direct exposure to cryptocurrencies directly but still do believe there’s change afoot in global finance with these new technologies and networks can still invest in this investment idea.
We reiterate our BUY recommendation on both Equals Group and Mode Global while they both trade under their buy up to limits. You can find the original recommendations here and here.
Buy list update
Kanabo Group (LSE: KNB)
Kanabo Group is a medicinal cannabis company that focuses on the distribution of cannabis-derived products.
Kanabo Group recently reached a significant milestone, and one that looks set to shake up the UK cannabinoid market.
On 14 July 2021, Kanabo announced a deal with LYPHE Group, a lead supplier of medicinal cannabis products.
The deal saw Kanabo ship its first medicinal cannabis cartridges to the UK.
The cartridges can only be used with Kanabo’s VapePod device.
According to CEO Avihu Tamir, Kanabo’s offering is advantageous to both patients and physicians.
Currently in the UK, patients can only use cannabis in two forms: orally (as a pill) or through smoking cannabis flowers.
The former is preferred by physicians because it is a healthier way to consume them.
However, with this, there is no guarantee of a lasting impact.
Smoking is the preferred means for patients, but of course, is not recommended by physicians due to the health impact that it has.
Kanabo has put an end to this argument with its VapePod.
Vaping means a faster onset of the effects of CBD products. It allows the drugs to reach the bloodstream of patients five times faster than if it were taken orally.
In addition, Avihu states that cartridges are the fastest growing segment of the cannabis industry in North America, which is valued at around $20 billion.
It’s still early days for the cannabis market in the UK. Medicinal cannabis use, prescription and awareness in the UK is a slow grind.
However, this is a positive step forward and we expect that wider medicinal use of cannabis will be a snowball effect of which Kanabo is placed as a market leader in the UK and stands to benefit from this long-term medical play.
While the stock is down from our initial recommendation, this positive movement has clawed back some of those falls.
We reiterate our BUY recommendation on the stock. You can find the original recommendation here.
Mode Global Holdings (LSE: MODE)
Mode is a payment services provider specifically focused on cryptocurrencies and the “new money” system.
It is a fintech, that like Equals, is looking to stay relevant to the new money system.
On 26 July 2021, the company announced that its payments and rewards services is launching on iOS devices in public BETA.
In other words, the Mode app is now (finally) available for download on Apple’s iOS products (iPhone, iPad).
Users will have access to the same features, including frictionless payments and instant bitcoin cashback, that have been available to Android OS users.
It adds to an exciting period for Mode, in which the company will begin its partnership with THG plc at the end of Q3 2021.
Ryan Moore, CEO of Mode, noted:
“The past few months have been very exciting for Mode, with our BETA launch on Android and our announcement that we will be launching with THG starting from the end of Q3. To add to that excitement, I’m delighted to be rolling out our payments solution to iOS, a critical step in our expansion and growth strategy.”
To us, the availability of the Mode app on Apple’s iPhone will give it the potential for customer growth on a massive scale.
According to Apple, there are now more than one billion active iPhones in the world. And in the UK half of the entire mobile market consists of Apple iOS devices. In other words, being available on iOS now doubles the potential market reach of Mode.
In addition, its upcoming partnership with e-commerce giant THG is a cause for excitement.
It will give Mode exposure to THG’s large customer base, which spans across 169 different countries.
Collectively, this reinforces our optimism on the stock. You can find the original recommendation here.
The Frontier Tech Investor “Top Three”
Sometimes it’s hard to decide on which stocks to invest in from our buy list.
Below is our Frontier Tech Investor “Top Three” section showing three stocks in open BUY positions. If you’re trying to figure out what to invest in next, these are three that we think are a great place to start.
This doesn’t mean our other stocks are no good: this is just a tool to help you spot the next Frontier Tech Investor stock that could be worthy of your consideration.
Mode Global Holdings (LSE: MODE)– Mode looks to revolutionise the way in which payments are being conducted. Its platform provides a seamless way to manage, and spend assets from both monetary systems; the old, fiat currency system, and the new, crypto and digital assets system. The platform has unique features, such as the potential for you to earn interest on your bitcoin holdings. We see the popularity of Mode rising in line with the wider adoption of cryptocurrencies as a means of payment. Most recent developments at Mode are discussed in detail above. You can find the original recommendation here.
Velocys (LSE: VLS) – there’s no doubt that governments will continue to push their “green agenda”. This means that they will do what they can to support industry in ways that will help enable carbon neutral economies. Velocys is a big part of this – developing sustainable fuels for transport and logistics (in particular aviation) with pioneering technology. If you’re looking for a great “green energy” play, Velocys is a very good place to start. You can find the original recommendation here.
Equals Group (LSE: EQLS) – our most recent recommendation, Equals, is a one-of-a-kind international payment ecosystem that removes the barriers to cross-border payments. It provides a number of consumer and business-facing products that allows payments to be settled efficiently, in a variety of currencies. Whilst the platform is built upon the principles of the old, fiat currency system, it has shown its desire to integrate into the new (crypto) money system by introducing crypto liquidity to its payment services. Collectively, this makes it a unique payment platform that provides the best of both money systems. You can find the original recommendation here.
Sam Volkering
Editor, Frontier Tech Investor
Elliott Playle
Junior Analyst, Frontier Tech Investor
