INX Crypto Exchange Launching IPO Next Week
INX Ltd. has announced that it will be launching its initial public offering (IPO) as early as Monday. This would cap an almost two-year journey for the startup crypto and security token exchange. In a press release issued on Thursday, the Gibraltar-based company said that it was anticipated the offering would be launched as soon as August 24th, 2020. As reported previously, the company has priced its 130 million tokens at $0.90 each. These tokens would run on the Ethereum blockchain and would give a total of $117 million in gross proceeds. This was right in the middle of their target range of $0.80 and $1.00 per token.
According to the latest filing made with the U.S. Securities and Exchange Commission (SEC) by INX, the sale would net the firm a total of $111 million after deducting fees to A-labs, the advisory firm, and other expenses. The company is planning to use the net proceeds for building INX Trading Solutions, which is a regulated exchange for cryptocurrencies, derivatives, and security tokens. The instruments that would be on offer are a combination of security and utility tokens. They can be used by investors on the INX platform to pay their trading fees. Plus, the tokens would also give shareholders the right to claim company profits.
The sale of INX would undoubtedly be a big milestone for the entire blockchain industry. It would become the first security token offering (STO) that would be registered with the SEC. This, this status would make it marketable to mom-and-pop investors. The previous STOs that had occurred were unregistered and so they were restricted to wealthy investors. In these cases, the issuers had just filed notices to the regulators. During the 2017-2018 boom, the initial coin offerings (ICOs) that had happened were conducted with little or no regard for compliance.
Most importantly, INX’s sale would definitely be one of the largest as well as the very IPOs that have taken place in the blockchain industry. It has been quite a long journey for the company, whose U.S. operations are led by Alan Silbert, the Executive Managing Director. Barry, his brother, serves as the CEO of CoinDesk’s parent company, Digital Currency Group. The F-1 prospectus, which is the SEC’s form given to foreign issuers, was filed by the company almost a year ago. INX would be required to comply with the Know-Your-Customer (KYC) regulations and in order to do so, they have written a smart contract for this purpose.
Under this contract, only wallet addresses that belong to investors who have been vetted and put on the ‘whitelist’ would be able to receive tokens. The KYC checks are being done by TokenSoft and a registry of investors is also being maintained. This is a registered agent that focuses on blockchain token offerings. Paz Diamant was hired by INX last month as its chief technology officer. He served as the former managing director of R&D and product at eToro where he helped in building the broker’s crypto trading system.
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