On May 21st, 2021 Majic Wheels Corp announced that they had entered into an agreement to acquire a company called CGCX Ltd.

The company’s leadership took their knowledge of the financial markets and the fast-growing crypto market to develop sought after products. Their main target markets included Malaysia, India, Mauritius and the UAE. On their Linkedin Page, they list that their customers include companies, startups, traders, and merchants.

Four Tiers of Services

CGCX, also known as Calfin Global Crypto Exchange, actively set out to offer something that other crypto exchanges have avoided. In total, they were able to provide four different services under one platform. The first was the CGCX Exchange. On their exchange, users were able to trade different cryptocurrencies. However, their main pitch is that they offer the world’s first insured crypto trading platform. By offering a lower average margin for transaction fees, and adding some of the fees on as CGCX coin paid back to the company, they are able to offer a competitive transaction fee.

Besides their trading platform, they also have business lines that touch on Token Listings, Merchant Solutions and Smart Contracts. Although, it is difficult to find specific information on these lines of business from the company’s website. However, I would like to cover what these lines of business can build upon. Token listings can be profitable for the listing company built on the transaction fees they can collect from trades. Merchant solutions can lead to the ability for companies to bring in new customers by enabling customers to purchase crypto with their credit or debit card. Lastly, smart contracts running on an exchange allow users to process legitimate transactions by building on the blockchain network of CGCX.

Most importantly, Majic Corp listed on their website that they will have a new company presentation coming soon. This should outline more accurately the company’s plans for the future with CGCX’s products and services.

CGCX Coin

Along with the management team’s success with creating a respected cryptocurrency company, they were able to successfully launch their own coin as well. “The CGCX coin allows exchange platform users to receive 50% discounts on fees on our platform while paying with CGCX tokens. In the next phase, they can be used as a medium of exchange in our platform for Merchant transactions and Smart Contract Applications. They can also be used to vote in the Alt Token listing module to be launched very soon. With the ever-expanding opportunities for utilization, the demand for CGCX token automatically gets enhanced, increasing the value of the token holders.”

Currently, CGCX trades for just over $.04, per coinpaprika.com. This is another business driver that could lead to hidden value being found in the acquired company. Upon release of company financials, it would be wise to see what percent of the circulating supply is owned by the company.

Summary

The ever-evolving world of crypto continues to push the envelope for financial markets today. Offering the first fully-insured trading platform along with a crypto token that is worth nearly $62 million, CGCX has been able to carve out a decent market share in a highly competitive business. Now, it’s time to wait and see what Majic Wheels, Corp. (MJWL) has in store to further build this company to new heights.

MJWL Stock price at time of publication: $0.11

MJWL Price as of July 8th, 2021: $0.16

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Sources:

https://www.linkedin.com/company/cgcxofficial/about/

https://finance.yahoo.com/news/majic-wheels-corp-enter-blockchain-180800464.html

https://coinpaprika.com/coin/cgcx-cgcx/

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*Disclaimer: The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry.