The Success of SX
We have been following the story of St Georges Eco-Mining Technologies (CSE: SX) a little over a month now as the company has diversified and grown into a huge global player and their share price has risen from $0.05 back in November to $2.46 and is shares were halted from trading on Monday.
SX’s original focus was on developing new technologies to solve the biggest environmental problems in the mining industry. They had right of first refusal for all of the active mineral projects in Iceland, and some small exploration projects in Quebec for nickel, lithium and rare earth metals. They have gone way beyond that realm since.
It has been a fun story to follow as their CEO Frank Dumas’ twitter account (@maikan5) has been teasing out cryptic messages and his loyal shareholders and twitter followers are jumping on board and drawing conclusions as to possible future plans.
In late November, SX began to pick up some buzz in the investor community when they announced that they were going to apply for a patent for their Lithium clay extraction technology. This technology allows extraction from sites that before were not economically feasible. They also stated that they were going to look at Blockchain technologies based on their boards expertise in the industry.
Early investors began to unearth the background of their board member, Dr. Tsai Wei-Tek. He is a world renowned pioneer of Blockchain technology, back in China, who published numerous papers….more on him later.
In early December, SX signed a technology licensing agreement with Iconic Minerals to allow Inconic to utilize their Lithium recovery technology throughout their sites. So at that point in time we had some buzz on the Blockchain front and they began licensing out their technology.
Right after Xmas, SX gave its shareholders a late Xmas present when Agoracom interview CEO Frank Dumas, there were tons of little tidbits of intel that investors began to look further into, as this company looked like it had a lot of things potentially going on.
The buzz surrounding the mysterious board member Tsai Wei-Tek, and their technology licencing arrangements stated a rumor mill on social media, with investors digging more and more into the company.
Then Frank Dumas (CEO of SX), was added as an Advisor to Sheldon Inwentash’s (founder of Pinetree Capital) ThreeD Capital. ThreeD invests in disruptive technology in the junior resources, Artificial Intelligence and Blockchain sectors.
Then a few days later SX released news that Sheldon Inwentash has come one board as an advisor for SX. That send the rumor mill into full swing as why would someone with that pedigree come on board for a small cap mining tech company like SX.
ThreeD Capital had recently launched Blockamoto.io, an early-stage investor platform that supports companies which use Blockchain to enhance the value of new and existing ventures………..
They a few days later SX announced that their wholly owned subsidiary Zeu Crypto Networks Inc. signed a Blockchain and smart contract technology licence agreement with Qingdao “Tiande” Technologies (A private Chinese company which Dr. Wei-Tek Tsai was previously in charge of) for the use of Tiande’s proprietary technologies, patents and know-how to develop and commercialize novel mineral commodity production chain control, tracking and trading exchanges.
There was a trail of breadcrumbs across twitter as to what the team was up to.
- Tweets on technology from TV shows like Silicon Valley talking about Internet of Things & Internet of Blockchain, #DFT (Still don’t quite know the DTF reference is about yet, but it might play out in the coming weeks)
- Tweeted the translation of Dr. Tsai, Wei-Tek into Chinese – Cai Weide (for investors to begin googling to see his pedigree)
- Tweeted references about Gatcoin
- Liking and commenting certain tweets from his followers and commenting on the the speed of
@WeiTekTsai blockchain protocol
- Posted pictures of the team working away (Gatcoin founder, Sheldon Inwentash, Wei-Tek Tsai, Frank Dumas etc) – leading investors to speculate on what they were doing.
It was a cryptic puzzle for investors to solve, those who did early stood to reap the rewards as the share price skyrocketed based on speculation and the rumors were growing by the day.
Eventually investors began to connect the dots that Tiande, has patents on a number of fast Blockchain technology,………fast for 1998, using computer processors from 20 years ago.
With modern processors and their patents intact, there was and article from 2016 stating that Tiande had a new generation of Blockchain system. They did a trial run back in 2016 (source) which obtained a speed of 20,000 Transactions Per Second.
The CEO has since confirmed that it is 3x that speed, so 60,000 TPS but that was as of 2016 last year……
One of the biggest setbacks to the mass adoption of Blockchain is the time it takes to process transactions, see below how the 60,000 Transactions Per Second (TPS) compare to the competitors:
Then the Big announcement
On Sunday Jan 14th, they went all in and announced that Zeu Crypto (SX subsidiary) has entered into a LOI to acquire all of the Blockchain and Smart Contract Technologies assets of Tiande for $150M in equity (+$75M in warrants) of Zeu Crypto through share issuance.
This was a huge move as they knew what they had on their hands and had the tiger by the tail. They stated that they have a plan to deploy what experts have stated to be a world class Blockchain ecosystem that stands at the threshold of a new, far-reaching technological revolution.
Those are bold words, but they believe that the assets acquired (patents, relationships and human capital) are revolutionary. They plan on deploying their ecosystem later Q1, with a SandBox initiative and quickly followed by the BigData suite of solutions.
Finally, they aim on a mass application project, The “Internet of Blockchains” (IoB), to be released before the end of 2018. They eventually own the patent for the fastest (that I am aware of) Blockchain transaction processing system which they can license to the businesses of the world.
This is groundbreaking news and the stock was halted before open on Monday, with speculation and rumors circling on Twitter about the SX team’s visit to silicon Valley and what the next news could potentially be.
Fortune Favours the Bold
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