The Crypto Company (OTC: CRCW) has experienced a significant upswing, with a staggering increase of over 1000% within just a few weeks. Despite this dramatic movement, there seems to be no noticeable impact from any major press releases driving these fluctuations. However, numerous filings on the OTC Markets are available for review, potentially holding significance in explaining this sudden surge.

X, a commonly used platform by OTC companies for investor updates, has also not seen active utilization in this scenario. Nevertheless, there has been a noticeable uptick in engagement from investors on the platform.

As CRCW crosses the one-cent-per-share mark, there arises a pertinent question: Can this momentum be sustained, potentially pushing the stock to even higher levels? Examining various factors, including forthcoming prospects and market dynamics could shed light on their trajectory – as always, we’ll start with some background first.

Background:

Given CRCW’s website is currently under construction, we’re basing our background analysis on one of their filings. Before we dig deeper, it’s important to note that CRCW is registered with the SEC and adheres to their rigorous reporting standards. This is a positive aspect for investors, enhancing transparency across the board.

As mentioned, we found their background from an excerpt on their 10-Q filing. Which states that the Crypto Company was established in Nevada on March 9, 2017 and their focus in the business of Bitcoin mining, consulting, training, education, and associated services concerning distributed ledger technologies, commonly known as “blockchain.”

They have a wholly-owned subsidiary, Blockchain Training Alliance where all their courses and training packages can be found. It appears this is the entity in which most of their business is conducted.

These services cater to both corporate and individual clients, emphasizing general blockchain education and the development of technological infrastructure and solutions for enterprise-level blockchain technology. The company’s primary sources of revenue and expenses stem from consulting and educational related operations.

Market Dynamic:

The crypto market’s performance this year has been remarkable. For those not closely following, it has surged by over 150% in just a single year… With Bitcoin’s lows in January, much of the online chatter was pessimistic, painting the digital asset as a futile investment destined to vanish into nothingness and hold no value. Of course all that has changed and a number of market dynamics have pushed positive momentum to the digital asset.

Just recently, there’s quite a significant rumour going around, that Qatar’s Sovereign Wealth Fund is evaluating a $500 Billion Bitcoin Investment. This has in turn fuelled a market frenzy and pushed BTC over 10% in 4 days.

As per a user, @seth_fin, on X, an investment of this scale could potentially propel the value of BTC to over $150,000 per coin. This represents a substantial increase of approximately 255% from the current value of $42,298 at the time of writing.

Other macro possibilities are at stake as well, with the possibility of a spot BTC Blackrock ETF, and BTC halving in April 2024. These advancements have generated substantial excitement within retail investor communities, to say the least.

The importance of this market dynamic is simple. In a booming market, all entities tend to benefit. Considering CRCW as a micro cap OTC company in the cryptocurrency realm, there’s a possibility it could also gather momentum. Given its low share value, the observed volatility can be quite intense, as evident from the recent fluctuations over the last couple of weeks.

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OTCM Filings:

As previously mentioned, the company has put out numerous filings in recent weeks. Here are a couple that warrant your attention.

Insider Purchase:

CRCW put out an 8-K on November 24th, 2023. Here’s the exact statement from the filing, “Effective November 24, 2023, the Crypto Company (the “Company”) agreed to convert $49,600 of accrued but unpaid salary for Ron Levy, the Company’s Chief Executive Officer, Interim Chief Financial Officer, Chief Operating Officer and Secretary (“Mr. Levy”), to Common Stock of the Company at a conversion rate of $0.0016 per share (the “Conversion Price”), resulting in an aggregate of 31,000,000 shares of Common Stock of the Company (the “Conversion Shares”) being issued to Mr. Levy. The Conversion Price was based upon a five-day volume-weighted average price of the Company’s Common Stock and approved by the Company’s independent board member.”

Insider purchases are good for a number of reasons, specifically:

• Confidence and Alignment: Insider purchases often signal confidence in the company’s future prospects. When executives, directors, or employees buy shares of their own company, it demonstrates that they believe in its potential for growth and success. This action aligns the interests of insiders with those of shareholders, indicating a shared belief in the company’s performance.
• Positive Signal: It can serve as a positive signal to the market. Public disclosure of insider purchases can create a favorable impression among investors, indicating that those closely involved with the company view its stock as undervalued or anticipate positive developments.
• Information Signal: Insider purchases might suggest that those with the most intimate knowledge of the company’s operations and potential future plans see favorable outcomes ahead. This information can be perceived by outside investors as a cue to the company’s expected performance.

10-Q filing:

It’s crucial to evaluate financial stability unveiled in 10-Q filings. As for CRCW, there appears to be underlying risk factors involved with their financial health. This is a frequent occurrence among OTC companies trading in the Pink tier and a common risk taken for companies in a high growth phase. With other positive indicators, it doesn’t automatically imply you should stay away, but these are figures you should be aware of:

• Total Revenue 3 months ended September 30th 2023 USD $124,195 compared to USD $252,733 the year prior
• Net loss 3 months ended September 30th 2023, (USD $358,845 ) compared to (USD $415,737 ) the year prior
• Total current assets September 30th, 2023 $1,306,324 compared to $1,556,561 December 31st, 2022
• Total Liabilities September 30th, 2023 $5,211,421 compared to $4,616,001 December 31st, 2022

As of September 30, 2023, the Company had cash of USD $20,435. In addition, the Company’s net loss was (USD $3,922,996) for the nine months ended September 30, 2023 and the Company’s had a working capital deficit of USD $5,048,726.

Technical Analysis:

The surge in trading volume of CRCW has attracted a considerable influx of technical traders seeking potential entry points. The recent volume reached an impressive 74,807,398 shares traded, marking over a 5.5x surge compared to its average 3-month volume of 13,674,352.

While technical analysis is commonly favoured by day traders seeking quick flips or swing trades, it plays a pivotal role in enhancing market liquidity for all investors.

According to insights from users like @jennyjunechris, there seems to be a shift in support and resistance levels. Their perspective indicates that CRCW may have established a new support level after successfully surpassing prior resistance thresholds.

Resistance levels, integral in technical analysis, represent price levels where a stock encounters selling pressure, hindering its upward momentum. These levels signify areas where the price struggles to ascend, potentially indicating a barrier preventing further upward movement.

Traders and analysts identify these levels through historical price patterns, chart analysis, and market behaviour. Approaching a resistance level often triggers heightened selling activity, as previous buyers may sell to lock in profits, potentially stalling or reversing the asset’s ascent.

Understanding resistance levels is pivotal for traders, indicating potential selling opportunities. Failure to breach a resistance level might suggest a stall or reversal in an asset’s upward trajectory. Conversely, a convincing breakthrough above a resistance level could signal a continuation of a bullish trend.

Trading Algorithms:

As mentioned, CRCW experienced a notable surge without any significant press releases or SEC filings today. Much of this momentum seems to stem from increased demand among retail investors and a surge in hype, which could potentially impact trading algorithms.

This sudden surge in the market, characterized by rapid price fluctuations, has the potential to prompt algorithms to react aggressively, thereby amplifying market volatility. Additionally, the high trading volumes observed within a short timeframe could trigger algorithms designed to respond to volume changes, further magnifying price swings.

Moreover, trading algorithms commonly rely on technical analysis, reacting swiftly to signals from various charts, indicators, and trading patterns. Abrupt changes in these technical indicators might trigger rapid algorithmic responses, contributing to the overall market turbulence.

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Material Press Release:

Since June 26, 2023, the company hasn’t issued any press releases, but one stands out as a significant event from 2022. CRCW secured a substantial deal with a company associated with Fortune 500 companies.

Given the prevailing macroeconomic factors, there’s a growing demand for a deeper comprehension of cryptocurrency as a whole, this is precisely where CRCW’s educational packages become highly relevant and it’s possible their wholly owned subsidiary will be well positioned to take advantage of increased demand.

Oct. 26, 2021 Release:

CRCW announced that its wholly owned subsidiary, Blockchain Training Alliance, has partnered with Hired to supply candidates for referral in the high-demand blockchain space. Hired is a service provider to industry leaders such as Instacart, Wayfair, Zendesk, Postmates, Twitch, Capital One, and Peloton.

Demand for blockchain skills is a rapidly growing IT skill set, and the Blockchain Training Alliance is a global leader in instructor-led blockchain training and certifications. It provides relevant content, instruction, and certifications for blockchain technology as the use of blockchain continues to grow in the corporate world.

“We are thrilled to enter into this new agreement with Hired as it solidifies our position with a major employment company,” said Ron Levy, CEO of The Crypto Company. “Blockchain Training Alliance is arguably the #1 blockchain training company in the world, and I believe we are experiencing the largest migration of talent in history into one industry and that industry is blockchain. My team is at the forefront of training that talent pool, so, it makes perfect sense that we help source candidates to one of the leaders of the talent marketplace.”

Since this announcement, there’s been a noticeable crypto market downturn, commonly referred to as the “crypto winter.” However, with renewed enthusiasm for the crypto space, there’s potential for this deal to attract increased deal flow. While an update from the company regarding this would be appreciated, the deal remains intriguing and could potentially drive substantial long-term growth.

Conclusion:

In summary, the prevailing positive market dynamics hint at a potential upswing for crypto companies in general, including micro cap OTC entities like CRCW, poised to reap the benefits. Naturally companies like CRCW will have extreme volatility, potentially leading to monumental 1000% gains, or entire loss of your investment. Some positive filings reveal significant insider activity and have drawn attention from a robust retail community. Coupled with the Hired announcement, we find CRCW particularly intriguing with long-term growth prospects. As is customary in this swiftly evolving space, we advise closely monitoring CRCW for any rapid developments.

We will update you on CRCW when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

Picture by TheDigitalArtist from Pixabay

CS Diagnostics Corp. (OTC: FZRO) has seen a remarkable 112% surge in its shares as of the current moment, marking a staggering total gain of 432% since November 15th, 2023. Interestingly, despite this significant increase, the company hasn’t released any press statements and we cannot find any respective SEC filings that could account for such a surge.

The absence of an investor relations section on the company’s website limits the available avenues for gathering insights. Nonetheless, we managed to uncover additional information through online forums among retail investors and a supplemental filing from the OTC markets website, posted from FZRO’s Twitter.

While these sources have provided some background, the lack of formalized information leaves us with relatively little to base our analysis on. Nonetheless, despite its recent nature, the supplementary OTC filing dated November 27th, 2023, could potentially offer a preview of FZRO’s future prospects and the potential trajectories it might pursue.

Background:

On September 4, 2023, CS Diagnostics Corp made a significant acquisition. They purchased the entire CS Protect-Hydrogel, including its tangible product, intellectual property, distribution rights, and patents from the CS Diagnostics Group, a company based in Germany. This hydrogel-based tissue spacer serves a crucial purpose in radiation therapy by creating distance between cancerous cells and healthy tissue. Essentially, it shields healthy tissue from the harmful effects of high doses of radiation.

Hydrogel Spacers:

Currently hydrogel spacers are specifically used in treating prostate cancer. In this case, the spacer helps in moving the rectum away from the prostate, thereby decreasing the damage caused to the rectum during radiation therapy. This hydrogel spacer is injected in liquid form through a thin needle into the area between the cancer cells and healthy tissue. It gradually dissolves within the body after approximately 6 months.

What’s unique about CS Protect-Hydrogel is that it’s a ready-to-use product, sterilely packed and can be directly applied. Moreover, this hydrogel can be beneficially utilized in radiotherapy treatments for a wide array of cancers such as prostate, cervical, esophageal, bladder, and breast cancers.

Competitive landscape:

Good news, there does not appear to be a highly competitive landscape for this technology. FZRO’s main competitor for hydrogel spacers would be Boston Scientific Corporation (NYSE: BSX), currently valued at USD $80 billion. The competitor product SpaceOAR Hydrogel System was developed in 2010 by Augmentix, Inc., which was fully acquired by Boston Scientific Corporation in 2018 for a fixed purchase price of USD $500 million plus a variable purchase price component of USD $100 million upon achievement of certain sales targets.

The competitor product has been further developed, and is currently marketed under the SpaceOAR Vue Hydrogel trademark, and is approved exclusively for use in prostate radiation. The product marketed by BSX consists of three components that are mixed in a predetermined sequence and drawn into a syringe by a trained and skilled person.

It’s important to note that the molecule of the CS Protect-Hydrogel differs significantly from the molecule of the competitor product, and patent infringements are not to be expected.

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Competitive Edge:

According to FZRO, their product is highly differentiated from BSX and comes with several advantages, specifically:

Practical Benefits:

• Effortless application of CS Protect-Hydrogel as it comes pre-prepared, simplifying the process.
• Eliminates any additional work steps.

Hygienic Advantages:

• Immediate application of CS Protect-Hydrogel upon removal from sterile packaging, minimizing the risk of contamination.
• Prevention of contamination from product preparation and assembly.
• Reduction of potential hygienic risk areas within the treatment room.

Medical Benefits:

• Elimination of the risk of incorrect mixture, preventing potential missed patient appointments.
• Expanded application across various cancers (prostate, cervical, esophageal, bladder, and breast), enabling a broader range of treatments.
• Feasibility of hypofractionation, reducing the number of treatment sessions per patient.
• Potential for dose escalation, facilitating acceleration of radiation therapy.

Economic Benefits:

• Reduced personnel costs during treatment by removing the need for assistance in hydrogel mixing.
• Lower room utilization costs per patient due to decreased risks of re-treatment from incorrect mixtures.
• Decreased cleaning expenses due to the ready-to-use nature of the product.
• Minimized lawsuits or insurance claims resulting from incorrectly mixed hydrogels, reducing additional treatment requirements.
• Lower purchase price for clinics compared to competitor products.

With easier handling, lower medical & cost risks, and expanded scope of application, FZRO expects that the respective purchasing departments of clinics (including specialty clinics) and hospitals will quickly adopt and list the CS Protect-Hydrogel in their portfolios.

Market Opportunity:

Apart from the CS Protect-Hydrogel, a competitor product enjoys widespread global use. The CS Diagnostics Group is confident that the CS Protect-Hydrogel could capture around 50% of the market share in the near future. This confidence stems from the aforementioned easier handling, reduced medical and cost risks, and broader range of applications.

The success of the CS Diagnostics Group’s use of CS Protect-Hydrogel relies heavily on how well it enters the market and the share it captures.

In a realistic scenario where it achieves a 50% market share and respective sales prices of EUR $1,100 and USD $1,900 per unit, the economic benefit as the net present value of future cash surpluses as of September 30, 2023 is a monumental EUR $961 million.

For more information on how this was calculated, click here.

Valuation & Audit:

On September 4, 2023, Tom Wrankmore, a reputable German public auditor and valuation firm, conducted an assessment certifying the value of the CS Diagnostics Hydrogel product, all previously mentioned values were taken from Wrankmore’s assessment.

It’s important to remember there’s a number of x factors involved in the valuation of FZRO, and the values calculated could be no where close to accurate if things do not go according to plan.

Considering Wrankmore’s credible expertise and esteemed status, he perceives this scenario as a plausible one. However, the successful execution ultimately falls on the management team.

It’s crucial to delve into the team’s background and track record to gauge the potential outcome accurately. Presently, there’s limited information available about the management team, which isn’t necessarily a surprise, given how recent FZRO was established.

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Acquisition & Approvals:

On September 27, 2023, CS Diagnostics Corp acquired the entire CS Protect-Hydrogel for a cost basis of Five Hundred Million USD. This acquisition was completed through the issuance of 110,000,000 shares of CS Diagnostics Corp Common Stock. Following this transaction, in November 2023, CS Diagnostics Corp submitted its 3rd Quarter Report and Financial Statements, emphasizing the acquisition of the CS Protect-Hydrogel.

This submission aimed to clarify that the company is no longer categorized as a shell company and should not be considered a “Shell Risk.”

At present, the company is actively collaborating with its partners to secure regulatory approval for CS Protect-Hydrogel from key authorities across Europe, North, and South America. This critical step is essential for the product’s recognition and acceptance in medical applications within these regions.

Following successful CE testing and certification in Germany, the process of registration or approval involves a necessary testing procedure. Anticipating the regulatory journey, the CS Diagnostics Group expects a timeframe of 6 to 12 months for approval in the U.S. Additionally, a timeline of 6 to 8 months is foreseen for the testing procedure and registration of CS Protect-Hydrogel in Germany.

Considering the existing market availability of a competitor product used worldwide specifically for prostate irradiation, CS Protect-Hydrogel does not require extensive re-introduction or advertisement for this particular application. However, extensive information dissemination and promotional efforts are crucial for establishing its use in treating other types of cancer.

Conclusion:

Obviously FZRO is still in its early phases, but Wrankmore’s assessment has certainly made it quite attractive. While it’s currently too soon to tell, we can imagine part of FZRO’s exit strategy may consider a bigger player like Boston Scientific Group (NYSE: NSX) buying them out – this all depends on how FZRO progresses and is merely speculation for now.

The recent OTC filing on November 27th, 2023, has caught the eye of many retail investors, sparking interest in the stock. Volume is picking up extremely quickly and we might not see these low levels for long. FZRO’s average trading volume is 4,514 shares and had 179,680 shares traded at the time of writing – a near 40X increase in volume after Wrankmore’s assessment.

Over the next 6 to 8 months, we expect to gain clearer insights into how well the management team can meet Wrankmore’s expectations. Regardless, we strongly advise closely monitoring FZRO during this pivotal period, as developments tend to evolve rapidly.

We will update you on FZRO when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

Picture by vipragen from Pixabay

Introduction:

Picture a blockbuster-style movie or binge-worthy TV series where there’s a secretive board takeover, worries about AI gone rogue, a CEO feeling the sting of betrayal from his own crew, and a late-night rebellion rocking the global tech stage. Sounds like an unbelievable storyline…. doesn’t it? But this isn’t some made-up tale—it’s the real deal and a very recent development at OpenAI.

For those not knee-deep in the whirlwind of developments, catching up on this roller-coaster ride can be quite a task. But this story matters, even if you’re not an A.I. enthusiast. Whether you’ve interacted with ChatGPT or pondered the risks of powerful A.I., all these threads are woven into the OpenAI drama—a company leading the charge in artificial intelligence innovation.

What sparked the chaos?

Last Friday, OpenAI’s CEO, Sam Altman, got the boot. The reason? Vague murmurs about his lack of transparency with the board. Interestingly enough, OpenAI has a nonprofit board that controls the for-profit subsidiary and can vote to replace leaders if necessary. This structure is what allowed the removal of Altman without explaining much.

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Why the upheaval?

The upheaval began with Ilya Sutskever, OpenAI’s chief scientist, locking horns with Altman. Sutskever wanted safety prioritized; he feared Altman was chasing growth without caution. This difference of opinion mirrored a broader split among A.I. experts—some worried about A.I. outpacing humans, while Altman was more optimistic about its potential.

What came next?

Speculations about Altman’s return faded fast. Interim CEOs shuffled in and out, with Microsoft dangling job offers for Altman and his colleague, Greg Brockman who was also removed as chair of the board and decided to quit in solidarity alongside Altman hours later. The move prompted almost everyone at OpenAI to threaten quitting unless Altman and Brockman were reinstated.

Twitch’s co-founder Emmett Shear became the newly appointed interim CEO and mentioned that prior to taking up the role, he asked about the reasons behind Altman’s removal. Shear clarified that the board’s decision to oust Sam didn’t stem from any particular safety-related dispute. “Their rationale was entirely distinct from that,” Shear stated. Unfortunately he refrained from providing any specifics regarding what that reasoning might have entailed.

In a weekend memo addressed to the staff, even Brad Lightcap, OpenAI’s chief operating officer, clarified that the board’s choice “wasn’t a response to wrongdoing or anything linked to our financial, operational, safety, or security/privacy approaches. It was a breakdown in communication between Sam and the board.”

In a plot twist, Sutskever expressed regret, trying to mend fences after his name popped up among almost 500 staff members on a letter threatening to quit unless Altman was brought back. Within’ a few hours, ~95% of the company had jumped on board with this sentiment.

His post on X states, “I deeply regret my participation in the board’s actions. I never intended to harm OpenAI. I love everything we’ve built together and I will do everything I can to reunite the company”.

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Why does this matter to us?

This isn’t just another corporate spat. OpenAI isn’t your run-of-the-mill company—it birthed ChatGPT and houses top-notch A.I. researchers. Their aim? Crafting super-smart A.I. Altman’s clout in the A.I. world added a layer of intrigue to his sudden exit.

Zooming out, this turmoil mirrors a bigger struggle: how to regulate powerful A.I. tools and trust companies to use them responsibly.

But the big question remains: Why was Altman removed?

The board’s explanation about communication gaps didn’t clarify much. The twists and turns offered no clear answers. Rumors about reckless A.I. development were debunked. Sutskever’s remorse seemed to contradict safety concerns.

As things settle, Microsoft’s CEO remains in the dark but still trusts Altman’s leadership, adding more mystery to the puzzle.

Altman, a founding force, transformed OpenAI from a research hub to an A.I. powerhouse. The recent turmoil paints a stark contrast to their journey, raising concerns within the board that led to Altman’s abrupt exit.

The OpenAI saga is a real head-scratcher—a once-quirky lab now entangled in a real-life puzzling tale, leaving everyone wondering what triggered this unprecedented shake-up.

We will update you as more details emerge, subscribe to Microcapdaily to follow along!

Picture by geralt from Pixabay

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.