It’s a very rewarding trading day for investors in Spherix Inc (NASDAQ:SPEX) with shares up nearlty 50%, making the stock Wall Street’s bull of the day. Why the excitement? The company announced that it has entered into a definitive purchase agreement to acquire 100% ownership of DatChat, a privately held personal privacy platform, focused on Encrypted Communication, Internet Security and Digital Rights Management.
DatChat recently launched its initial product, a messaging application for mobile smart phones available on iOS and Android. The app allows users to control sent messages on the recipient’s phone. Additionally, the Company is expanding its platform to include a peer-to-peer secure email system that will be built on Ethereum blockchain technology. This system is intended to provide enhanced security, because there is no central storage point for messages, therefore they cannot be accessed by an unauthorized recipient. Once fully-developed, the DatChat blockchain technology is being designed to allow each message to become its own micro-blockchain that will be permissioned, private and controlled. The closing of the acquisition is subject to shareholder approval and other customary conditions.
In addition to the acquisition of DatChat and the integration of the DatChat team, Spherix is further solidifying its holistic move into this sector by establishing “Ether Mining Company” as a subsidiary of Spherix. The purpose of the subsidiary is to mine the cryptocurrency “Ether.” Ether is a type of crypto token that fuels the Ethereum blockchain network, upon which DatChat’s distributed network is being built.
Mr. Anthony Hayes, CEO of Spherix stated, “Cyber security is a rapidly-growing sector based on the ever-increasing threats to privacy and confidential information. News of data breaches at companies large and small are becoming increasingly frequent. We believe that the DatChat Platform offers a solution by giving users total control of their information after transmittal. We believe that the further development of the DatChat’s messaging technology into an email application will be the next evolution of blockchain, and that it will allow for permanent and ephemeral chains, content delivery, mining and third-party application development.
“DatChat was founded three years ago to address the need for a mobile messaging application that provides a traditional messaging experience, while providing users with complete privacy and control for their messages after they hit send,” said Mr. Darin Myman, CEO of DatChat. “Internet Privacy and cyber security lie at the heart of what we do. We realized that most cybersecurity was focused only on keeping intruders out, DatChat was developed as a complete messaging platform with ephemeral and privacy features that uniquely protect us both before and after we hit send. We believe that upon implementation, DatChat’s blockchain technology, will allow users to maintain the right to decide how their messages and information are accessed, even after hitting send or submit. Essentially, DatChat’s goal is to develop a Digital Rights Management Platform (‘DRM’) for blockchain.”