Finance

Crypto Exchange INX to raise $130 Million in Milestone IPO

INX Limited, a crypto exchange startup, is reportedly planning to raise $130 million via a security token initial public offering (IPO). It’ll be the first security token sale registered with the U.S Securities and Exchange Commission (SEC).

INX is headquartered in Gibraltar, and they filed the SEC’s prospectus form for foreign issuers, draft F-1, on Monday, August 19. The firm will target institutional investors, but crypto trading on the exchange will be available to the general public, just like the INX token itself. 

INX, a hybrid token

INX tokens can be deemed as a utility token since holders can use it on the INX Exchange to pay transaction fees. Also, token investors are entitled to 40% of profit shares from operating activities, but they’re not seen as equity holders. 

“When fully operational, we expect to offer professional traders and institutional investors trading platforms with established practices common in other regulated financial services markets, such as customary trading, clearing, and settlement procedures, regulatory compliance, capital and liquidity reserves and operational transparency,” says the draft prospectus.

The exchange plans to establish two trading platforms, separating between security and non-security tokens. Also, part of the plan is to register as an alternative trading system (ATS). The prospectus reads: 

“In the future, the Company intends to establish a platform for the trading of derivatives such as futures, options and swaps.”

This would place the exchange on the same field as Overstock’s tZERO, which are security tokens, Coinbase Prime and Fidelity Digital Assets, which are spot cryptocurrencies, and eventually even ICE’s Bakkt, which place as derivatives.

Reportedly, INX token is “an ERC20 blockchain asset that is programmed using a smart contract that is compatible with the Ethereum blockchain.” 

What are the next steps?

There are a series of sign-offs that INX needs to acquire, corresponding to different parts of the process. Since crypto assets are new and regulations are still adapting to this unprecedented phenomenon, various regulatory bodies have jurisdiction. 

Before proceeding with the token sale, the SEC needs to find the prospectus “effective”. The prospectus should include standard disclosures and even employment contracts. 

Beyond the fundraising part, for the exchange to actually open for trade, there are other approvals to be obtained. To list security tokens, INX needs to become a broker-dealer, and that requires a separate registration with the SEC, acceptance into FINRA, and others. 

The exchange needs to obtain a money transmitter license from the individual states it wishes to operate. By the end of the year, INX wants to start in 8 American states, and then expand to more states next year.

The security token IPO, a landmark

This IPO represents a milestone, since to date, token sales have been unregistered. Also, INX’s sale would be one of the very few full-pledged IPOs in the blockchain industry. 

What makes INX’s offering different is that the tokens will be registered as security tokens. The SEC has previously approved of companies conducting (utility) token offerings, which was the case of Blockstack and YouNow. 

Headed by Alan Silbert, the company is counting with notable advisors on its board, such as Mark Yusko, CEO of Morgan Creek Capital, and as one of its directors is David Weild, a former vice-chairman of Nasdaq. If successful in fundraising, INX would be among one of the very few IPOs in the crypto space, followed by Argo Blockchain who raise $32.5 million on the London Stock Exchange.

Tags

Jeremy Banks

Jeremy is a journalist passionate about new technologies. Based in Canada, he spends his time writing about how techs such as blockchain, crypto and AI are changing the way business is done.

Related Articles

13 Comments

  1. Alexis Texas Fucking Her Big Fat Ass BANGBROS Blonde PAWG
    Alexis Texas Shows Off Sexy Arab Teen Takes a Fat Load in her Tiny Pussy Huge booty Alexis Texas snatch wrecked
    in the b Lesbo babe strapon fucked BANGBROS The Big
    Ass Battle! Phoenix Marie Vs 18 yearsold pornstar punishment
    Alexis Texas Big Beautiful Ass Oiled Up For You.

  2. Ücretsiz Doktor porno videolar Asian twink gets a milk enema HD 6:00 İhtiyar KADIN DOKTOR
    (MIA WALLACE) tarafından becerdin HD 11:11 Pembe bölgenin derinliklerinde 5:
    54 Azgın doktor fucking hot i̇htiyar kadın 5:01
    LaceyStarr Beautiful Erkeksi Lezbiyen, Doktor Sikilecek
    Yaşlı Kadan tarafından incelendi. HD 12:10 OPS! Boşalma?!
    HD 9:07.

  3. I have been exploring for a little bit for any high quality articles or weblog posts in this sort of space . Exploring in Yahoo I eventually stumbled upon this site. Reading this information So i?¦m happy to express that I have a very excellent uncanny feeling I found out just what I needed. I most unquestionably will make sure to don?¦t forget this site and give it a look regularly.

  4. Its great as your other blog posts : D, regards for posting. “The present is the necessary product of all the past, the necessary cause of all the future.” by Robert Green Ingersoll.

  5. First of all, thank you for your post. safetoto Your posts are neatly organized with the information I want, so there are plenty of resources to reference. I bookmark this site and will find your posts frequently in the future. Thanks again ^^

  6. При нас играта е лесна, бърза и безпроблемна. Можете да играете от всички видове устройства, включително с операционни системи Android, Windows и iOS, както и през всички популярни браузъри – Google Chrome, Mozilla Firefox, Opera, Microsoft Edge, Safari и др. За целта не ви е нужен допълнителен Flash Player, тъй като повечето игри са базирани на адаптивната HTML5 технология, гарантираща изживяване от изцяло ново поколение. Класическите плодови ротативки могат да се открият в най-разнообразни конфигурации. Предпочитанията са към казино игри с 10 линии, 20 линии и 40 линии, но има и такива с повече шансове за печалба. При слотовете с плодове могат да участват специални символи, които да отключат бонуси или да заместят други символи по барабаните, за да се формира печалба. https://cristiancujy976431.blogmazing.com/16137483/алфаин-казино Много хора я познават и с името „21“, тъй като главната идея на играча е картите му да се приближат именно към сбора от 21 точки, без да го надвишават, ако искат да спечелят. Вие играете срещу крупието, което също има своите възможности да победи, та даже много често къщата има предимство срещу залагащите. За момента кено игра, която е в категория игри на маса, няма възможност да се играе с бонусни средства. Всички казино промоции си имат освен условия за превъртане и условия на кои игри може да се разиграят.

  7. Just want to say your article is as amazing. The clarity in your post is just great and i can assume you’re an expert on this subject. Well with your permission let me to grab your RSS feed to keep up to date with forthcoming post. Thanks a million and please carry on the rewarding work.

Leave a Reply

Your email address will not be published.

Close