Today, another crypto runner is on our radar, and we have high expectations of this crypto play. Life Clips, Inc (OTCMKTS: LCLP) has surged over 1,500% over the past 5 days and at one point gained over 3,000% in the two days to July 15 after announcing its foray into the crypto space.
The cryptocurrency industry has been one of the most lucrative sectors for small-cap companies during the last few months, and our subscribers have seen huge runners that we brought to light.
Majic Wheels (OTCMKTS: MJWL), which rose over 11,000% year-to-date, is one of the best recent examples that we covered before its massive price surge.
We’re about to discuss why this recent announcement is of tremendous importance for Life Clips and why investors should regard LCLP as a great addition to their OTC portfolio with long-term potential.
We first paid attention to LCLP in mid-April, when the share price was fluctuating below one cent. Today, you can buy the OTC stock for four cents, but that’s certainly not the upper limit, as the company’s latest acquisitions bring value.
LCLP: a Bit of History
Life Clips started in 2013 as a camera firm that developed and manufactured action cameras aimed at families, travelers, and action sports fans. It also developed accessories like one-time-use batteries for mobile phones. The Florida-based company was founded by Hannah Grabowski.
It reached the OTC market in 2016 and put an emphasis on its Mobeego brand, under which it developed and distributed single-use and cordless batteries for cellular phones and other mobile devices. The brand was promoted internationally, having a presence in countries like Australia and Brazil. In 2017, its Mobeego products reached Amazon.com, although we found out that they had many negative reviews.
In 2018, the business started to be unprofitable, with the net income figure entering the negative territory while total liabilities kept surging.
The company gained a new image in 2021 when Robert Grinberg was appointed as President and CEO last February. He succeeded Victoria Rudman, who remains as CFO.
Grinberg is an experienced entrepreneur with an interest in numerous enterprises. For the past 20 years, he has been a private investor in public companies through his family office. He also serves on the Board of Directors of Stemtech Corporation, a nutrition company, and is a founder of Kaya Holdings, Inc., a cannabis company.
At the beginning of the year, the company became Pink Current again and came up with a new strategy to expand its business in new directions. It also came up with a new nicely-designed website.
Acquisition of Cognitive Apps Software Solutions
In April 2021, LCLP successfully closed the acquisition of Cognitive Apps Software Solutions Inc, which develops Artificial Intelligence (AI) apps for the healthcare industry and psychedelic research. The AI-powered mental health analytics platform enables businesses to assess and improve the mental wellbeing of their employees, patients, and customers.
Today, drug development for mental health conditions and other cognitive impairments is hindered by the inability to determine risk groups before the onset of visible symptoms. Cognitive Apps is addressing this issue by providing a speech-based AI technology that can help accurately predict risk for various types of depression and mood and anxiety-based disorders years before a clinical diagnosis is obtained.
The company claims that its technology can help identify and monitor subtle changes in the mental state by checking individuals more frequently and more objectively than the assessments used today. The speech and voice recognition market is expected to expand at a CAGR of 17.2% from 2019 to 2025 to reach $26.79 billion by 2025.
Thanks to the acquisition, Life Clips obtained Cognitive Apps’ intellectual property, including AI-enabled speech-based technology, along with the company’s research and development team.
In February, Cognitive Apps participated in the Y Combinator cohort, receiving an award as one of the most promising AI startups in the space of healthcare and technology.
In April, Cognitive Apps launched its Yuru 3-in-1 tool for understanding and managing users’ mental health. So far, the app is available on Apple‘s App Store and has a rating of 4.5 out of 5 based on 100 reviews. Initial results showed a weekly download conversion rate of 5.6% on more than 189,000 impressions and 19,900 product page views. App Units were 8,500, with average sales per paying user of $28.10. App Units are the number of first-time paid and free app purchases made on the App Store using iOS 8 and tvOS 9 or later.
At the end of June, Cognitive Apps introduced a Chatbot solution for both cognitive-behavioral therapy (CBT) and interpersonal therapy (IPT). The chatbot is an interactive assistant that makes it easy to measure, understand, and improve the mental health of a person. The bot will be released soon and will combine cognitive behavioral therapy and elements of interpersonal psychotherapy with the company’s conversational chatbot to deliver treatment directly through patients’ phones.
Entering the Crypto Space
Cognitive Apps is a great strategic advancement on its own, but LCLP is going even further to access new markets with tremendous potential. The company is about to run cryptocurrency exchanges in several countries with considerable trading volumes.
At the end of April, Life Clips announced that its subsidiary Cognitive Apps Software has signed a Letter of Intent (LOI) to license its Yuru software to Malaysian BelfricsBT for use in its products in the Southeast Asian market. BelfricsBT provides a wide range of blockchain-related services, including blockchain-powered smart contracts and crypto exchange software, as well as custom solutions.
As it turns out, LCLP went even further and decided to buy Belfrics Group altogether – and that is the major news that everyone is talking about.
On July 15, Life Clips was the number one stock with the most new watchers in the last 24 hours on Stocktwits. The share price skyrocketed from $0.0017 before the news to a YTD high of 5 cents on July 15. While the OTC stock has corrected and is trading at $0.022, there is much room for growth.
Belfrics Group runs cryptocurrency exchanges on its platform and operates in Malaysia, Singapore, India, Kenya, Tanzania, Nigeria, and Bahrain. In 2018, Belfrics became the first-ever exchange in the Middle East to obtain a Central Bank-issued Sandbox license, when it was approved by the Central Bank of Bahrain to operate its crypto exchange in the country.
According to the acquisition announcement released on July 14, Belfrics has the capability to process over 1 million transactions per second. Belfrics CEO and founder, Praveen Kumar, will main his position as the CEO, while Robert Grinberg will continue to serve as CEO of Life Clips.
Belfrics CEO and Founder, Praveen Kumar, commented:
“This is an exciting time for Belfrics. After many years of hard work building a global exchange for cryptocurrency and the most secured trading platform, it is time to spread our wings globally. The acquisition of Belfrics by Life Clips will help expand the reach of both our cryptocurrency platform and our blockchain solutions, which will create an impact worldwide.”
Why is Belfrics a Big Bet?
Belfrics will make LCLP a valuable stock as it operates in a fast-growing market, even though cryptocurrencies have been in correction mode since May.
Several users on Twitter pointed out that Belfrics Group said it was valued at $400 million and is aiming to reach a $10 billion valuation by 2023.
$LCLP small RS Is coming no doubt. 1:15. It is needed to uplist to major exchange. This is one of the biggest acquisitions in OTC this year. Again MC will not change. Buying in now is the absolute lows. $400 Million valuation with hopes to be $10 Billion by 2023.
— JA (@BinDaddys) July 14, 2021
Besides operating a crypto exchange, Belfrics is involved in two government-backed blockchain projects. The company is expanding rapidly and already has over 200 employees.
This is really big news for LCLP investors, who can still buy the OTC at a bargain price.
$LCLP LCLP acquiring Belfrics group and it had $400 mill valuation in 2019. Imagine now 🔥🔥🔥
This definetely is the next MJWL 🔥 pic.twitter.com/xUuQ56LVM5
— Billionaire27 (@Billions2728) July 14, 2021
Founded in 2014, the Belfrics digital exchange platform, which was fully developed in-house, is one of the most compliant platforms in the crypto space. Supported by the proprietary technology of Belrium blockchain KYC solution, the KYC and AML process of Belfrics Exchange is well accepted by regulators globally.
With 10 operational offices in 8 countries, Belfrics provides localized and personalized support to crypto traders. Through its blockchain Academy, Belfrics provides continuous training to traders, developers, and blockchain enthusiasts in more than 20 countries. Belfrics is licensed and regulated by the Labuan Financial Services Authority (LFSA) in Malaysia.
It has two main divisions: the digital asset exchange and blockchain division.
Thus, Belfrics is more than just a crypto exchange. It runs an entire ecosystem build around its proprietary blockchain, exchange software, and digital currencies.
Last year, Belfrics Group launched BelYO – India’s first-ever Covid19 blockchain tracking platform, along with YoSync and the Indian Institute of Information Technology, Bangalore.
With Belfrics, Life Clips has definitely hit the jackpot.
The Final Note
We think LCLP is one of the most undervalued stocks at the moment, and it won’t stay so for long. LCLP is acquiring Belfrics Group, which is huge, but it also has Cognitive Apps, which is a promising startup, and still keeping the Mobeego brand.
Here is why we think Belfrics will push LCLP’s price above $1:
- Belfrics runs several regulated crypto exchanges in India, Nigeria, Singapore, and Kenya, among others. According to Chainalysis’ 2020 Geography of Crypto report, Kenya, Nigeria, and India are among the top 15 countries by cryptocurrency adoption. Meanwhile, Google Trends data shows that Nigeria accounts for the most searches for the term “Bitcoin”.
- Belfrics runs an entire blockchain ecosystem with its proprietary blockchain technology.
- The company was valued at $400 million last year, and it is growing rapidly.
- It is one of the few regulated exchanges in key regions where crypto adoption is surging.
We like LCLP’s share structure, and we think the share price will start surging to reflect the increase in valuation.
Once LCLP stock clears a nickel, it’s blue skies ahead to a dime, followed by a quarter and dollar (s).
All we can say is that LCLP stock is one of the best bets for investors on the OTC Markets.
Where else can you pick up a stock that is worth dollars for under a nickel?
Congrats to all subscribers that got in under a penny. This bull run looks to be just getting started.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.