Nasdaq, the U.S.-based stock exchange, has recently begun to get involved in the world of cryptocurrencies. Earlier this spring, Nasdaq CEO Adena Friedman suggested that the stock exchange could develop a cryptocurrency exchange platform at some point in the future, although she did not specify when or exactly how that would take place. Around the same time, the exchange announced plans to partner with Gemini, the digital currency exchange founded by Cameron and Tyler Winklevoss. Through this partnership, Gemini will utilize some of Nasdaq’s tools for monitoring exchange activity in an effort to increase security. Given these developments, it’s perhaps unsurprising that Nasdaq has also published an article detailing three cryptocurrencies it believes to be the best bets going forward.
One of the first digital currencies that Nasdaq believes to have high potential is also the least prominent of the three. Stellar “has experienced a wave of interest from investors and crypto enthusiasts alike” thanks to recent developments in the OKEx exchange in Hong Kong, according to the Nasdaq report detailed by cryptodaily.co.uk. The prominent global stock exchange believes that stellar also has potential due to its partnership with IBM, which allows for the development of “a platform to enable cross-border transfers,” a goal shared by many digital currencies.
The second digital currency Nasdaq singled out was litecoin. The exchange wrote that “one of the major factors tipped to drive momentum to litecoin’s value is Blocknet’s announcement that LTC will soon function as a cross-blockchain decentralized app.” Again, partnerships between companies within and outside of the digital currency world have helped to fuel Nasdaq’s faith in litecoin’s potential.
Finally, Nasdaq pointed to perennial favorite digital currency bitcoin as a cryptocurrency likely to rise. Interestingly, Nasdaq pointed to the recent Consensus conference in New York as a primary driver of this; in hindsight, Consensus was viewed by many as a lackluster event this year. Nonetheless, bitcoin remains the largest digital currency by market cap, the most prominent on exchanges around the world and the most popular among investors of all types.
While Nasdaq’s recommendations should not be construed as investment advice, they do point to the fact that the major stock exchange is suddenly showing substantial interest in the digital currency space.
Investing in cryptocurrencies and Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns bitcoin and ripple.