The INX Crypto Exchange is set to launch a $ 117M IPO next week

Crypto Exchange INX is set to launch a 117M $ IPO next week - crypto exchange inx is launching 117 million security token ipo next week 1024x614INX Ltd. said it will launch its long-awaited benchmark initial public offering (IPO) next week, concluding a nearly two-year path to building a cryptocurrency and security token exchange. "The offering is expected to start on August 24, 2020, or shortly thereafter," the Gibraltar-based company said in a press release.

The project

INX has priced its 130 million tokens, which will run on the Ethereum blockchain, at $ 0,90 each (here the quotation in real time), for a total of $ 117 million in gross income. Considering the fees and commissions payable to consulting firm A-Labs, the sale would reach $ 111 million, according to INX's latest filing with the United States Securities and Exchange Commission (SEC).

The net proceeds would be used to develop INX Trading Solutions, a regulated exchange for cryptocurrencies, security tokens and derivatives, and create a guarantee fund to protect the company and its clients in the event of a data breach, trade error or default. of the counterparty.

The tools offered are a hybrid of utility and security tokens

Investors could use them to pay trading fees on the INX platform. The tokens would also entitle holders to a share of the company's profits. The sale of INX will mark an important milestone for the blockchain industry.

It would be the first security token offering (STO) registered with the SEC and therefore legally marketable for small investors. Previous STOs were not registered and were mainly accessible to wealthy investors, with issuers simply submitting notices to the regulator; The initial coin offering (ICO) of the 2017-2018 boom was conducted with little or no regard for compliance.

The INX sale would also be one of the very few IPOs in the blockchain industry and almost certainly the largest. It has been a long way for the company, whose operations in the United States are led by CEO Alan Silbert.

Certificates and smart contracts

INX first signaled its intention to go public with a draft registration statement in January 2018. The company filed its F-1 prospectus (the SEC's form for foreign issuers) almost exactly a year ago.

To comply with KYC (know-your-customer) regulations, INX has written a smart contract that allows only wallet addresses belonging to investors who have been vetted and whitelisted to receive tokens.

TokenSoft, a registrar specializing in blockchain token offerings, is carrying out KYC checks and keeping the investor ledger. Last month, INX hired Paz Diamant as its chief technology officer, regulatory documents show. Diamant is the former R&D and Products CEO at eToro, where he developed a cryptocurrency trading system for brokers, according to his LinkedIn profile.