TrustStamp (NASDAQ: IDAI) were always likely to have a little correction after yesterday's 100% rise in the stock price. That's just the way things work - people get excited about an announcement, then second thoughts occur. Given that we're still well over 70% down, even after yesterday's rise, on an annual basis there's room for further improvement - or at least long time shareholders will wish there will be.
As to what T Stamp does it's one of those very fashionable online things about identity recognition. OK, perhaps identity authentication. If we're all to be doing important things online then it's obviously necessary for us to be able to establish our identity online. Preferably in a rather more secure manner than LastPass and the like allowing details to leak. So, if someone does come up with a fully secure and yet also easy to use system then that would be potentially valuable. It's even possible that whoever does that will create a new global standard used by near all - a very profitable position to have. But of course it's early days yet. That's why TrustStamp is around a $17 million valuation. Indeed it had to raise more money just recently and has had some terrible earnings misses.
TrustStamp stock price from NASDAQ The specific cause of the IDAI stock price rise yesterday was the announcement that three patents have been granted. And, well, it's possible to have conflicting views on patents like this. So, if someone were granted a patent on nuclear fusion - that actually worked - then that would be great and very, very, valuable. But that's not really the issue with the TrustStamp patents. They're on irreversible methods of transforming biometric data into those identifiers. And, well, yes. Any competent mathematician can provide a number of ways to do that. Sure, To T Stamp now has patents on the ones it has decided to use. But that hardly blocks off other people from using slightly different methods.
So, yes, it's nice that they have patents. But a 100% stock price rise on the news is possibly a significant over-reaction.