VeriChip going away?

VeriChip going away?

Summary: An executive told RFID Update simply it couldn't stand the "cash burn" of consumer marketing.

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Verichip and pennyJust as it was launching its consumer campaign VeriChip seems to be going away.

The company launched its ad campaign under the name HealthLink in April, but just three weeks later sold its Canadian unit, Xmark, to Stanley Works for $45 million and put itself on the block.

An executive told RFID Update simply it couldn't stand the "cash burn" of consumer marketing. This just three weeks after launching its program. The Xmark deal enabled the company to get out from under its bills.

CEO Scott Silverman was then bounced and replaced by Joseph J. Grillo, who runs another RFID company in the same town, Digital Angel. That company lost $4.8 million on sales of $22.4 million in its most recent quarter.

While VeriChip released a study just yesterday claiming its technology saved emergency care patients $685.67 per day, it has been dogged by critics like CASPIAN, which yesterday released a new report linking the chips with cancerous tumors.

The chips only contained 16-digit identification numbers, but from here both they, and the company endorsing them, look to be on the way to the dustbin. That famous picture above, showing the chip next to a penny, may soon represent its stock price.

Topics: Security, Hardware, Networking, Processors, Wi-Fi

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6 comments
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  • THANK GOD this died an early death...

    Its good to see that consumers will NOT tolerate the actions of big business trying to implant needless items in us.
    JT82
    • Consumers didn't kill VeriChip

      It was killed by costs. And by changing technology. While costs were increased by organized consumer opposition (as noted in the link) that wasn't definitive.

      The same group, CASPIAN, which claims to have killed VeriChip, was organized to fight "frequent shopper" cards used to tie purchases to named accounts. They haven't succeeded in that effort, nor in most of their efforts.
      DanaBlankenhorn
      • Oh well damn....

        Its dead anyway so thats the important thing :) I would hope though IF it was "cost effective" consumers would kill it off...I certainly would never have one of these in me EVER.
        JT82
  • We'll see...

    It's entirely possible it will become mandatory. Identity theft is becoming rampant and this method of verification may seem like a brilliant solution to the government.

    They could also use the argument that it prevents illegal immigration, as only citizens would have the government verified chips (yes we know how long that will take to crack).

    And please don't take this as conspiracy theory either, everyone didn't have a social security number at one time, and birth certificates used to only be present for 64% of the population. It's just another form of documentation. So rather an educated guess on my part, but one that is seeming more and more likely.
    Spiritusindomit@...
  • RE: VeriChip going away?

    ....the question is not, will rfid chips be a great turnover investment in the near future, the question is who will be the company that successfully launches it.
    There are millions of security enforced buildings, with card based door scanners, and where they are, there are hundreds of annoyed workers constantly peddling around for there key card. RFID is the future, like it or not. And to Scott Silverman, "If you lay down, you'll be the man that could have reaped the profits from changing the world".
    digisapien
  • RE: VeriChip going away?

    I think it's great. They tortured me against my will for almost three years and I tried to reason with them, but they wouldn't budge. I tipped every federal and state agency that I could find after they dislocated 75% of my spine and tried to kill me last month. It's a shame that they multiplied and there are a slug of others out there that are tied to hedge funds. Verichip has an exit plan to going away. They just rolled into Digital Angel as Blue Moon. Give me a call if you want to help stop all of these microchip corporations
    Sean

    413-530-7398
    sean77Vvc