Trading activity on the Canadian Securities Exchange (CSE) exploded last year thanks to the marijuana industry and the blockchain hype, CEO Richard Carleton said.
Carleton revealed on Thursday that the overall value traded in 2017 came at about $7.81 billion, up 403% on the $1.55 billion recorded in 2016. The number of shares traded on CSE hit 17.4 billion compared to about 6.4 billion in 2016.
Carleton said CSE had wrapped up 2017 “with a bang,” going on to add:
“It was largely driven, but not exclusively, by the cannabis space. But later in the year, we did have a number of companies with blockchain applications.”
December 28 was the most active trading day of the year, with a turnover of $388.9 million and almost 456 million shares changing hands. On that day, 82.6% of the trading volume was attributable to marijuana stocks, while blockchain-related stocks accounted for 8%.
Of the ten most actively traded companies on the CSE in 2017, eight were cannabis-related stocks and two were blockchain-related ventures: Glance Technologies (CSE: GET) and NetCents Technology (CSE: NC).
In total, 24 blockchain-based companies were listed on the CSE last year compared to only one such fintech firm joining the exchange in 2016. They were responsible for 14.4% of the total trading volume versus the tiny 0.04% recorded in 2016.
Carleton said that his alternative exchange and local regulators would take care to ensure that companies do not seek to exploit the hype just by adding “blockchain” to their name or using some similar trick.
“We want to make sure that the companies that are putting blockchain in press releases and so on, that they really are pursuing a business venture … that uses the technology or an application for the technology,” Carleton pointed out.
Many companies have seen their stocks surge after changing their name to include “blockchain,” some of those being dubious enterprises. For instance, we reported last week that Hong Kong-based UBI Blockchain Internet wants to sell more than 70 million shares, but investors are having trouble assessing its fundamentals due to the lack of information and any working channels of communication with company representatives.
This article was curated from Google News. You can read the original article here.