E NXT-ID’s Crypto Play Awaits Traction Amidst Delisting Warning

TM Editors' Note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Medical technology company NXT-ID’s (NXTD) diversification into the cryptocurrency sector is underway. The move into the volatile industry, announced in 2017, marked a decision that appears to leverage existing company assets that overlap with the payments-focused elements of the cryptocurrency market. Now that initial orders of their retail-focused product called Flip, which launched under NXT-ID’s subsidiary Fit Pay, have reportedly been fulfilled earlier this year, it is yet to be seen the level of traction the product gets in stores that support its use.

Bearing the shape of physical coin, a company blog post described Flip as “a contactless payment device that enables Bitcoin (BITCOMP) holders to exchange their cryptocurrency into U.S. dollars and use that value to make contactless purchases at millions of retail locations.”

The Melbourne, FL-based NXT-ID publicly shared last September it would be spinning off the portion of the company focused on payments and authentication technology, most notably Fit Pay, into a new public entity called PartX. Though some delays have pushed back the spin-off being seen to fruition, the SEC is reportedly reviewing the Form 10 Registration Statement and should matters go as expected, NXT-ID shareholders will receive PartX equity following the transaction. Amongst other benefits, the move allows NXT-ID’s other involvements, primarily its health business LogicMark, to not be financially commingled with what truly appears to be a wholly distinct company in Fit Pay.

While both US customers and merchants, the only targeted audience so far for the product, have been slow to adopt mobile payments and digital wallets in the face the reliable physical debit and credit card system, NXT-ID is clearly making a bet on the future of how people transact. Further, there is little evidence to support that US consumers who own bitcoin want to spend it, as many view it as a speculative investment as opposed to digital cash, and “selling” bitcoin into dollars, which happens when Flip users deposit bitcoin on to their devices, can trigger some tricky tax situations under current US law. Regardless, should either of these trends change, NXT-ID appears to be positioning itself for well to benefit from the shift.

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This article is part of a new “UnderCovered” series of exclusive articles featuring companies with limited coverage. Authors are compensated by TalkMarkets for their time and ...

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Ayelet Wolf 1 year ago Member's comment

I like your articles, where can I read more by you?

Karen Klein 2 years ago Member's comment

Seems so odd for a medical company to move into crypto. Seems like everyone is getting on #crypto or #blockchain these days.

Wannabe Warren 2 years ago Member's comment

Great article on $NXTD. Would like you to investigate the following from a journalistic point of view. I’ve emailed the SEC asking them if the Form 10 was effective and they responded, yes 60 days after they filed on April 29th. Gino said on the last webcast they’d announce the spinoff after the SEC made registration statement effective. That’s complete according to an SEC attorney. What’s the hold up?

Mad About Money 2 years ago Member's comment

Seems like everyone and their grandma is getting into #crytocurrency or #blockchain these days!

Alpha Stockman 2 years ago Member's comment

Excellent read.

Currency Trader 2 years ago Member's comment

You make an excellent point - I often wondered why anyone would actually use #bitcoins to buy items (except for criminals of course), when it is so volatile. It reminds me of Germany's currency after World War I when people never knew how much their money would by the next day. #Facebook's #Libra is a stale coin which makes far more sense to me. Will $NCTD's Flip Pay be compatible with that?