One of today’s most impressive movers is small-cap company T Stamp (NASDAQ:IDAI). This afternoon, shares of IDAI stock briefly surged more than 45% on an announcement that the company has received allowance for a U.S. patent related to its identity/trust solutions. Since this surge, IDAI has given up some of its gains. However, the stock is still up by more than 25% as of this writing.
What’s going on with IDAI stock?
Today, the company noted that the U.S. Patent and Trademark Office (USPTO) provided the company a Notice of Allowance for a patent titled “Systems and Methods for Identity Verification via Third-Party Account.” T Stamp stated the following about the patent in a news release:
“The patent […] uses a proprietary process to establish control of one or more third-party accounts as a primary or secondary identity authentication factor and is intended to complement Trust Stamp’s AI-generated Irreversibly Transformed Identity Token (IT2) technology.”
Notably, this is the second patent allowed to T stamp over the past month for its various trust and identity services. Let’s dive into what to make of today’s move on the news — and whether IDAI stock is worth buying here.
IDAI Stock Surges on Additional U.S. Patent
T Stamp is an intriguing company in that it provides artificial intelligence () generated multi-factor authentication technology. Just exactly how this technology works is beyond me. However, I suppose that’s intended to be the case, with the company’s patents suggesting that the “secret sauce” won’t be spilled any time soon.
This company hopes to provide “a range of no-code and low-code solutions that can be implemented quickly, and at minimal cost, increasing the availability of both biometric and non-biometric solutions.” Of course, that sounds great. And if T Stamp can build out a solid customer base by keeping people “one step ahead of the fraudsters,” perhaps today’s announcement is worth buying into.
Generally, today’s buying activity in response to T Stamp’s new patent makes sense. Investors appear to feel a sense of calm, knowing that the USPTO reviewed and view the company’s tech as materially different from what’s on the market. Whether T Stamp can sell its core services is a whole other question. But at this early stage, investors seem to have enough of a vote of confidence to jump into IDAI stock.
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On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.