As an acquisition and development company targeting natural resource properties, Discovery Minerals Ltd., (OTC: DSCR) has had no problem adapting to changing market demands. One of the newest mining and crypto penny stocks, DSCR first started exploring the idea of tethering a crypto coin to the price of gold using its own reserves on February 22nd – resulting in an initial uptick for its stock. Similarly, a second uptick followed the company’s engagement of a firm to create and administer the company’s Crypto Coin on March 15th. However, it wasn’t until May 5th that the stock hit its all time high of $.036 following an “extremely successful trip” with geologists to the Ruby Mine.  

Gold-Backed Crypto Penny Stock

The stock’s accumulation in response to the company’s new direction shows a promising future for DSCR which plans to create a gold-backed Discovery Coin. The company plans to create a gold-backed Discovery Coin “for revenue diversification to create liquidity and assist in monetizing gold resources”. The President and CEO of Discovery Minerals, Russel Smith, shared the company’s plans in April saying, “As the Ruby gold mine consolidates into expanded production, Discovery Minerals Ltd will explore dedicating part of the reserves and production to the Discovery Gold Coin assets.” 

Actively sharing its activities related to the Ruby Mine Project, DSCR has begun capturing the interest of speculative investors eager to see its results. A historically rich mining project, the 3.5 miles of unmined river channels on the project site are estimated to hold a potential 370 thousand ounces of gold yet to be mined. For this reason, Simon Meldrum – a well known and respected geologist – has been added to the team. According to the company, Meldrum worked on a comprehensive site assessment from April 28th to May 8th and will continue his evaluation of the project for later publication.  

Bullish investors drove the stock up 136% on May 4th, following a successful meeting with geologists at the Ruby Mine project for sampling and analysis of its assets. At the same time, DSCR has continued development on its cryptocurrency venture announcing that it has selected Alt 5 Sigma Inc. for the development of its Discovery Coin (“DSG”) and Payment Gateway. Currently, the company plans to create 210 million Discovery Coins on the Ethereum Blockchain. Afterwards, the coins will be tethered to 2,100 Bitcoins, 2,100 Ethers, 2,100 ounces of physical gold, and 2,100 ounces of physical silver.

Media Sentiment

Right now, DSCR has a lot going for it which may be why OTC FinTwit influencer @AlexDelarge6553 has given it some attention. With over 67 thousand followers, @AlexDelarge6553 is one of the biggest FinTwit influencers in the penny stock community. He’s made great calls in the past and DSCR may be one of them.

Technical Analysis

At the moment the stock appears to have a short-term support of .0068 and has been testing a resistance of $.0101 over the last few days. Accumulation began increasing on the 13th but began trending down on the 18th. Now, the MACD and signal line are flattening with the chance for a crossover very soon.

crypto penny stock DSCR chart

After acquiring the Ruby Mine in April, Discovery Minerals Ltd. broke through its previous resistance and has since consolidated its value; although, the stock dipped sharply following initial excitement in May. Currently, the stock has a market capitalization of roughly $48.2 thousand and is currently trading at $.0070. Of its 10 billion AS, 6.8 billion are outstanding. At the moment, the volume is near 85 thousand and its RSI is trending downward at 37.91 with the potential for a reversal. 

Discovery Minerals reported that it is considering a joint venture proposal which would include funding for the Ruby gold mine as well as other projects. Speculations regarding the joint venture are fueling investor confidence after the company’s recent update and this crypto penny stock appears to have a good outlook – potentially leading to an upswing over the next few days. With this in mind, and the inevitable excitement following publication of DSCR’s report, the stock could soon return to $.088.

Should you buy?

Given the downtrend in RSI and near convergence of the MACD indicator, DSCR may see a bounce very shortly as it nears its support level. This may be a good entry point for investors banking on the company’s growth potential.

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