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

Given NXT-ID’s familiarity with contactless technology from supporting Garmin, Swatch, and even some initiatives from major credit card companies, as well as this being an opportunity to break into the growing, forward-looking cryptocurrency industry, the move appears strategic and rooted in future investment. The product is in the IoT (“Internet of Things”) category, which denotes everyday items that connect to applications and/or send data to “the cloud”, and leverages NFC (“Near Field Communication”) technology, comparable to the way that Apple Pay and Samsung Pay work.

Many remember bitcoin from its run up to nearly $20,000 in late 2017 before dropping shedding around 85% of its value to the low $3,000 range in 2018. The asset has continued to be an exciting one to follow in 2019, climbing well past $13,000 in June. The asset’s price is currently hovering between $9,000 and $10,000.

Given that the Flip product will allow users to convert bitcoin into USD, NXT-ID will likely be handling some share of bitcoin. While it’s not exactly clear how the bitcoin that customers convert to USD through Flip while be custodied, it’s plausible that the company will take on at least some proprietary cryptocurrency position because of this initiative. The volatility of bitcoin is something many companies, and even funds have continued to stay away from due to the perceived and real risks associated with getting involved with the cryptocurrency. Beyond the financial risk, there’s reputational risk on the table as well, as many still consider cryptocurrency disreputable and dangerous.

Given this, what is tempting NXT-ID to invest the bitcoin space? While the move into payments and authentication technology seems natural given the company’s past endeavors, it may make sense from a larger risk-return standpoint as well.

NXT-ID is buckling in the shadow of a 99% drawdown in stock price from its peak in late 2013, as the company has received merciless treatment from the public markets. Despite gaining 26% in Q1 of 2019, the stock has shed 42% since that point and is already down 32% in Q2 through the end of last week. The valuation trend has been negative on nearly every time frame in the recent past. The equity once trading near $60 dollars closed this past week at an all-time low of $0.5.

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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 4 months ago Member's comment

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

Karen Klein 10 months 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 1 year 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 1 year ago Member's comment

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

Alpha Stockman 1 year ago Member's comment

Excellent read.

Currency Trader 1 year 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?