Erik's Interview on Market Huddle re: Abaxx Technologies Investment

Episode Summary

Executive Summary: The discussion centers on Abex Technologies (ABEX), a startup backed by Josh Crumb and other notable angels, and Eric’s thesis that its initial commodity-exchange products are only a “thermostat moment” for a much larger mission: using secure digital bearer instruments and distributed ledger technology to re-engineer financial markets. The near-term focus is a Singapore-based exchange with physical-delivery LNG and other contracts, but the long-term vision is tokenized warehouse receipts and faster, more transparent market settlement.

Main Topics: ABEX founders and angel-investor backing (Priority: 5/5): ABEX is presented as Josh Crumb’s venture, with additional founders from futures exchange infrastructure and backing from high-profile angels such as Kyle Bass and Robert Friedland. Eric explains how he became involved after Crumb directly pitched him on the raise. The 'thermostat' analogy: near-term product vs. long-term vision (Priority: 5/5): Eric compares ABEX’s first public products to Tony Fadell’s Nest thermostat launch—an apparently modest first step that masks a much bigger strategic ambition. He argues the physical LNG contract and trader tools are just the entry point. Secure digital bearer instruments and tokenization (Priority: 5/5): The core thesis is that secure digital bearer instruments are a breakthrough that could replace paper warehouse receipts and make commodity ownership transferable as digital tokens, reducing counterfeiting, rehypothecation, and settlement friction. Singapore as a strategic exchange jurisdiction (Priority: 4/5): Eric argues Singapore is a uniquely favorable venue because regulators are likely to support innovation and the city-state wants to expand its role as a global financial gateway amid Hong Kong’s weakening position. Public listing via reverse merger into New Millennium Iron (Priority: 4/5): ABEX plans to go public through a reverse merger with New Millennium Iron, with the resulting company trading as ABXX. Eric emphasizes there is no planned capital raise, which he views as a signal that the founders are focused on long-term value creation rather than dilution. Implications for market design and financial infrastructure (Priority: 5/5): Beyond commodities, Eric believes ABEX points toward a future where all financial markets become instant, tokenized, and more functional—moving away from legacy paper-era systems, batch processing, and delayed settlement.

Key Arguments: ABEX’s public-facing LNG exchange and trader-connectivity tools are real, but they are only the first phase of a much larger redesign of market infrastructure. The most important innovation is not simply blockchain, but secure digital bearer instruments that can function like cash while being transferable electronically without double-spend risk. Tokenizing warehouse receipts could solve counterfeiting and rehypothecation problems while enabling faster, more transparent, and more fungible commodity ownership. Singapore is strategically attractive because its government wants to deepen its role in global finance and is likely to be flexible with new market structures. The absence of a planned follow-on capital raise suggests the founders are not building for a quick exit; Eric interprets this as evidence of a serious, long-term mission. ABEX may be an early mover in a broader industry shift, but Eric acknowledges the exact roadmap is speculative and not publicly disclosed by the company. The broader goal is to re-engineer markets themselves, not just digitize old processes, eliminating outdated batch clearing and moving toward near-instant settlement.

Data Points: Seed capital sought in first outreach: $500,000 - Josh Crumb’s email to Eric said the startup needed about $500k more to finish the round. Angel-investor contribution size: 10 investors at $50,000 each - Eric described the pitch as needing roughly ten accredited investors contributing $50k apiece. Eric’s initial investment: $500,000 - Eric says he committed on the first call. Eric’s eventual investment: $1.2 million - He says he negotiated up from the initial $500k to a total of $1.2 million. Target public trading date: December 15 - ABXX was targeted to begin trading publicly in mid-December. Planned trading venue: TSX (Toronto Stock Exchange) - The company is expected to trade under the symbol ABXX on the TSX. Ticker symbol: ABXX - ABEX will trade as ABXX after the reverse merger, distinct from Barrick Gold’s ABX. Ownership split after reverse merger: 82% ABEX shareholders / 18% New Millennium Iron shareholders - Eric states the reverse merger will leave existing ABEX holders with 82% and NML holders with 18%. One-for consolidation: 1-for-12 - Eric warns that NML shares will be consolidated before becoming ABXX shares. Market cap of reverse-merger shell: ~$38 million - He describes New Millennium Iron as a tiny, illiquid company with a roughly $38 million market cap. Nest acquisition value: $3.2 billion - Used as the analogy for Tony Fadell’s thermostat product leading to a major company exit. Time from launch to Nest acquisition: 2-3 years - Eric cites how quickly Nest scaled after the thermostat launch.

Pivotal Quotes: "My answer had changed to F you, I'm not introducing you to anybody because I want the whole 500,000 myself." — Eric: Eric describing his reaction after the introductory call with Josh Crumb. "I think they're basically having their thermostat moment right now." — Eric: Eric explaining why ABEX’s initial commodity products are only the first step. "We need to redesign not just enhance the way the computer systems work, but we need to design the functionality of what the market does." — Eric: Eric’s core thesis on the future of financial markets and tokenization.

Implications: If Eric is right, ABEX could be an early platform for tokenized commodities and faster settlement, with broader implications for exchanges, clearing, and market structure. The industry may move from paper-era processes to real-time digital ownership.