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Here’s Why GSTechnologies Share Price Spiked 6.1% Higher Despite Lack of News

Simon Mugo trader
Updated 3 Dec 2021

GSTechnologies Ltd (LON: GST) share price spiked 6.1% despite not making any major announcements as investor sentiment remained positive.

However, investors may have been reacting to news from GSTechnologies confirming the launch of the GS Money protocol on the Coalculus platform.

The new protocol is operated by GS Fintech, a wholly-owned subsidiary of GSTechnologies, which will be the sole issuer of the digital currencies issued by GS Money.

The company intends to issue four digital currencies pegged to the Pound, the US Dollar, the Chinese Yuan and the Euro.

The pegging of the new digital currencies to leading global currencies will allow GST to make payments via blockchain ledgers instead of wire transfers that could take days to be completed.

GS Money will initially facilitate restricted cross-border payments during initial testing to see if it can replace international money transfers. It will later expand to other business activities.

The company will offer the service via the GS Money borderless account, allowing customers to hold multiple digital currencies converted at the current rate into the supported major currencies.

Finally, GS Money will launch a private stablecoin to establish and maint public trust and allow claims to be backed by the company’s existing reserves.

Investors seem to have picked up on the significance of GST’s latest announcement, which was made on Tuesday this week. As a result, GST is one of the best performing shares on the London Stock Exchange this year since it has risen 1,589.3% since January.

Tone Goh, GSTechnologies Chairman, commented: “I am delighted with the progress that has been made from our collaboration with Wise MPay. The completion of the testing of the four enterprise chains and the launch of the GSMoney protocol is a major milestone for the Company. We are now focused on the initial cross-border payment trials of GSMoney and the completion of the acquisition of Angra. I look forward to providing further updates in due course as we seek to rapidly build a blockchain-enabled neo banking business.”

Long term investors and short-term traders interested in GST shares could find a better entry on a pullback to the 2.0p support level.

*This is not investment advice. Always do your due diligence before making investment decisions.

GSTechnologies share price.

IG chart of GSTechnologies share price 03-12-2021
Source: IG

GSTechnologies share price rallied 6.06% to trade at 2.45p, rising from Thursday’s closing price of 2.31p.

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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading