Recon Technology, Ltd. (NASDAQ: RCON) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced news with regard to the blockchain. As we’ve seen from DPW, LFIN, and others that have announced blockchain news recently, RCON is flying. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for ahead.
RCON Gains On Blockchain News
As mentioned above, Recon Technology is having an incredibly strong start to the trading session this morning after releasing news with regard to the blockchain. In a press release issued early this morning, the company announced that it has signed a two-year joint development term sheet with Future Gas Station Technology, Ltd., also known as FGS. Under the development term sheet, the two companies will jointly develop an integrated blockchain-based mobile shopping system for use in gas stations.
In the release, RCON said that FGS will be in charge of developing the system. At the same time, Tecon Technology will be providing the resources needed, including funding, to support personnel, risk and compliance management advice. In a statement, Mr. Yin Shenping, CEO at RCON, had the following to offer:
“We’re glad to cooperate further with FGS to explore the effective use of blockchain technology in our business… We are excited about the opportunities such technology provides us to adapt to consumer behaviors to better meet their needs and improve efficiency and profitability in our customers’ stores. We believe development this of blockchain technology will benefit both Recon and FGS.”
The above statement was followed up by Mr. Song Yang, founder of FGS. Here’s what he had to say about the development agreement with RCON:
“We have been enjoying rapid business development since Recon’s investment in us in December 2017. Our platform has been implemented by more than 150 gas stations, and we have added approximately 10 gas stations daily since January 1, 2018. Since we launched our mobile app DT Refuel, it has been downloaded more than 80,000 times, with approximately 93% of downloaders activating the application and more than 86% of active users purchasing goods through the app. App downloads have been driven by QR code and in-store promotions. As a result of increased adoption and usage rates of the DT Refuel app, we have seen recent daily sales through the app reach RMB 1.6 million and we expect average app sales to reach RMB 90 million in the next three months.”
What We’re Seeing From The Stock
One of the first things that we learn when we start to invest is that the news moves the market. In particular, news surrounding the blockchain has led to massive gains recently. So, it’s no surprise that that’s exactly what we’re seeing from RCON. The stock is definitely making a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:20), RCON is trading at $4.40 per share after a gain of $2.70 per share or 158.06% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on RCON. In particular, we’re interested in following the company’s work with regard to this development partnership and the blockchain-driven product it creates. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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