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INDX Security Token Offering Goes Live, Bringing Masternode Investing to the Masses

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INDX Security Token Offering Goes Live, Bringing Masternode Investing to the Masses

INDX

INDX is a blockchain FinTech, based in London, England.  Founded in 2017, the team at INDX have developed a service which provides investors access to Proof-of-Stake yields form Masternodes, Staking and DPoS.

Above all, the goal of INDX is to provide qualified, self-accredited and limited numbers of non-accredited  investors access to a passive income stream. As a result, sheltering participants from the volatility associated with the blockchain industry

Masternodes

The original idea behind INDX is to capitalize on new opportunities made possible through masternodes. A masternode is the underpinning of the increasingly popular proof-of-stake (POS) protocols, and similar hybrids. While proof-of-work (POW) continues to go out of style due to its perceived inefficiencies, POS becomes more attractive.

Proof-of-work protocols require miners to put in work, for the chance at being rewarded with tokens.  This comes in the form of solving complex equations.  In contrast, proof-of-stake protocol require users to ‘stake’ tokens as collateral. For protocols that utilize masternodes, if thresholds requiring a certain amount of tokens to be staked are met, the user may qualify for hosting a masternode.

The duties of a masternode go beyond simply staking tokens however. For instance, a masternode is responsible for verifying transactions, governing the network, all while hosting a complete copy of that project’s blockchain. The host of a masternode is in return, compensated with a steady return of the protocol’s native token.

Various companies within the industry utilize masternodes, with more popping up all the time. As previously stated, this is seen with companies utilizing POS or similar hybrids. Here are a few examples of companies that work in this way.

  • DASH
  • NEM
  • Stratis
  • WAVES

The Appeals of Passive Income

Passive streams are typically low-key, no-fuss, investments, which provide steady income streams. They require less management than active investments, and work towards bringing in income 24/7. They achieve this primarily through strategic diversification. Diversification plays an important role in any portfolio. It allows for investing risks to be mitigated through exposure to a variety of channels, when properly applied.
passive income

Actively trading cryptocurrencies can be highly lucrative.  This however comes increased risk through exposure to the industry’s proven volatility. To shelter one’s self from these risks, many turn to passive streams of income.

While there are various schools of thought as to which is better (active vs passive), most agree that a successful portfolio will make use of both plans of action to some extent.

Capitalizing on the Opportunity

Now that we know what a masternode is, and the benefits of passive income streams, how will INDX take advantage of these opportunities?

INDX has created a fund, which will strategically invest in a variety of masternodes. Since creating a single masternode requires a significant amount of capital, and technical proficiency – meaning they are often out of reach for single investors – this a tricky endeavour. To raise the capital needed to host various masternodes, INDX is hosting a security token offering beginning July 1st, 2019.

This token generation event will see the company create, sell, and issue security tokens to accredited investors. These security tokens will provide holders with a proportionate share of dividends garnered from proceeds of the masternode investment fund.

To maximize revenue generated through the fund, INDX makes use of an advanced algorithm that routinely re-balances, and invests, in the best performing masternodes in the market.

In this scenario, not only do the protocols, themselves, benefit through network participation, and the increased security brought through masternodes, but the investors will benefit greatly as well. More specifically, this plan allows for accredited investors to gain access to rewards which are not only passive and steady, but typically out of reach due to the cost of hosting a masternode.

The Finer Points

INDX will be making 83.33% of their security tokens available through their STO. These tokens are SRC-20 based assets, which will be sold at $0.30 each, with an intent to raise up to $15,000,000.

Of the funds generated, 90% will be funneled into the masternode portfolio, while the remaining 10% will go towards a liquidity pool.

Of the revenue generated through hosting masternodes, 50% will be reinvested into the fund, while the remaining 50% will be split proportionately among token holders. These dividends will be paid out on a regular quarterly schedule, and can be received as BTC, ETH, or USDC, with future support coming for FIAT.

In addition to receiving dividends, the INDX tokens, themselves, are expected to rise in value, as the net-asset-value of the fund grows in time.

Based off of their ongoing trial portfolio, INDX has indicated that investors can expect within the neighbourhood of 44% annual returns.

Compliance /Regulations

As this event will see the distribution of security tokens, it is important to note that INDX is doing so in compliance with industry regulations. Consequently, only qualified, self-accredited or a limited number of non-accredited  investors are eligible to take part in the STO at this time, as the event is proceeding under Regulation D.

Token holders should note that there are a variety of ways that security tokens can be structured. Those distributed by INDX do not represent equity share in the company; They simply represent the rights to a proportionate share of 50% of the revenue generated through the masternode investment fund.

Iconic Lab – Due Diligence

While INDX has generated support through multiple early investors, they have made the due diligence report from one of their main backers available for perusing. This would be Iconic Lab – a decentralized venture capital group.

A due diligence report is essentially an audit performed by a potential investor on a company. This audit overlooks aspects of the company, including, not only finances, but the overall mission and ‘gameplan’ for getting there.

The Team

INDX has a core team comprised of 5 individuals, with the team at large totaling 18. Here is a brief look at those holding ‘C’ level positions within the company.

CEO – Jonathan DeCarteret

COO – Gareth Ward

CIO – Rayyan Fathallah

CTO – Artur Grabowski

CMO – Jason Suttie

Roadmap

The immediate future for INDX revolves around the completion of their STO.  However, the months that follow this event are as busy as ever. Here is how the whole of 2019 breaks down for INDX.

roadmap2

Q2 – Pre-sale

Q3 – Token Sale (July 1st) Portfolio Funds Deployed

Q4 – Dividend Distribution Listing & Exchange

In Association With

Very few, if any, companies have hosted an STO on their own without the help of various specialists. There are simply no companies that possess all of the licensures and software necessary to do so.

To facilitate their own STO, INDX has turned to various industry specialists. For example, here are a few of their partners, and the roles that they will play in the process.

Swarm – Issuance platform

Coinbase Custody – Harbouring of funds

Lloyds of London – Insurance provider

INDX Trading

INDX breaks down an investors options into three steps.

  1. An investor will purchase INDX tokens to gain access to the passive income derived from masternode revenue.
  2. Investors continue holding INDX as its inherent value rises along with the funds NAV.
  3. Holders can sell/trade their INDX tokens, gaining access to immediate liquidity.

Step 3 stands out as one of the main draws towards the nascent digital securities sector, is the promise of increased liquidity. Only trading of these tokens on secondary exchanges will provide this liquidity.

INDX recognizes this, and has already announced various alliances with exchanges that will support their token in the coming months.

  • Open Finance Network – Integration confirmed
  • London Block Exchange – signed ‘strategic alliance’, to host INDX Token upon LBX exchange launch
  • Archax – intended future support
  • Airswap – intended future support
  • SharesPost – intended future support

Visit INDX to learn more.

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Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

Digital Securities

META 1 Coin Threatens Securities.io with Litigation for Reporting on ICO Fraud

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META 1 Coin Threatens Securities.io with Litigation for Reporting on ICO Fraud

On August 4th, 2020 Securities.io was threatened with legal action by Robert Paul Dunlap, the legal advocate for META 1 Coin, the creator, owner, controller, and also one of the defendants in the Complaint filed by the SEC. The threat followed the publication of an article titled “SEC Files Charges Against ex-Senator David Schmidt” which was published on March 25, 2020.

Who is META 1 Coin?

META 1 Coin raised funds in April 2018 by performing an Initial Coin Offering (ICO).  As described by an SEC filing META 1 COIN raised at least 4.48 million from over 150 investors in the United States and internationally.

In order to raise funds misleading claims were made. These were some of the claims:

  • They owned $1 billion in art insured against loss by a surety bond, and later, that META 1 owned $2 billion in gold assets;
  • KPMG, one of the largest independent financial audit firms in the world, was auditing Meta1’s gold assets;
  • Meta1 formed its own investment bank and developed its own digital currency exchange;
  • the Coin is safe and risk-free and will never lose value;
  • Each Coin, sold for either $22.22 or $44.44 would in two years be worth $50,000—up to a 224,923% return—as a “very conservative value.”

Unfortunately many investors did not perform adequate due diligence as the SEC claims the tokens were backed by nothing.

Litigation Threat:

The letter received by META 1 accused the SEC and Securities.io of being fraudulent, below are some of the accusations/threats and our responses.

If SECURITIES.io was to do any due diligence at all you would know it was a fictitious story fabricated by the SEC in order to make all digital assets look fraudulent.

Our response: Securities.io has the responsibility of reporting on both legitimate projects, and fraudulent projects. Every time an investor is taken advantage with false claims whether it is the form of an ICO, or other fraudulent behavior, it destroys the credibility of the industry. We also believe in the credibility and the mission of the SEC which is stated as “The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation”.

So time will tell if SECURITIES.io is really about digital assets or just another STATE run publisher of malicious defamation.

Our response: Perhaps this is pushing a conspiracy theory or an agenda of being owned and controlled by a deep state. Either way, Securities.io is NOT owned in part or in whole by any government entity in any jurisdiction.

Today is August 4th 3:25 EST 2020 and a claim will be made in 24 hours and It will decimate SECURITIES.io if the named article is not immediately removed.

Our Response: This has been noted. We have fact checked the original article and it remains accurate.

Additionally, I am ordering a follow-up update of the facts regarding the validity or META 1 Coin

Our Response: We have updated the article to reflect new information regarding the fraud behind the initial ICO raise. We were unaware that information was missing, thank you for notifying us of this. Whenever we are notified of errors in reporting we take corrective action.

Summary:

Unfortunately, the digital assets industry continues to result in many operators that are taking advantage of the naivety of investors. It is our responsibility to report on this unethical behavior and to report on any actions taken against these rogue operators by the SEC or other government entities. We will continue with our mission.

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Digital Securities

Polymath Launches ‘Token Studio 2.0’ on ‘Polymesh’ Digital Securities Blockchain

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token studio

Token issuer Polymath has had a busy few weeks.  Just over one month ago, the digital securities pioneer announced the launch of Aldebaran – the first iteration and testnet of the Polymesh  blockchain.  Now Polymath has announced version 2.0 of its ‘Token Studio’, a suite of token services, which now runs on the Polymesh blockchain.

Token Studio

When Polymath uses the term ‘Token Studio’, it is referring to a suite of services, which allows clients to create, issue, and manage digital securities – a vital part of Polymath’s goal to simplify token creation.

The first iteration of Polymath’s Token Studio was based on the Ethereum blockchain.  With the development and pivot towards the use of Polymesh, a new Token Studio was needed – one that was designed for this purpose-built blockchain.

With the launch of this version of Token Studio, Polymath has now opened up the ability for clients to trial its capabilities on the recently released Polymesh testnet ‘Aldebaran’.

Polymath notes that by utilizing Token Studio on the Polymesh blockchain, clients will benefit in various ways.

Design
  • Clients have the ability to create digital securities tailored to their needs – this includes asset type, ticker symbols, asset identifiers, etc.
Identity
  • Built-in services including KYC checks.  This ensures that only appropriate investors can gain access to digital securities created through the use of Polymesh.
Compliance
  • Arguably, the biggest draw towards a purpose-built blockchain is the ability to integrate stringent compliance measures – a necessity when dealing with digital securities. This means that, regardless of jurisdiction, token issues can be assured that their issuances remain in full compliance with securities regulations.

With Token Studio simplifying the creation and issuance process, there should be nothing holding back companies from creating compliant digital securities on the Polymesh blockchain.  The timing of the Polymesh-based Token Studio is ideal; anticipated security token exchange Archax previously announced support for Polymesh tokens when it launches.

Aldebaran

In the constellation, Taurus, the brightest star is Aldebaran – commonly referred to as the ‘bulls-eye’.  This is an apt name for a company that utilizes a bull as its mascot and represents a bright spot within the digital securities sector.

Aldebaran represents the first testnet of the purpose-built Polymesh blockchain.  Polymath has spoken on the rationality behind creating a project such as this, stating,

“The most important learning has been that security tokens cannot gain adoption and acceptance from regulators and institutions with a general-purpose blockchain; security tokens need something more specialized that addresses the foremost concerns of governance, confidentiality, identity, and compliance.”

For holders of Polymath’s ‘POLY’ tokens, a bridging service has been created to convert these assets to ‘POLYX’ – A token with similar functionality, but based on the Polymesh blockchain, rather than Ethereum.  Along with this bridging service, Polymath will soon be launching a Polymesh wallet – providing a way to safely store these assets, while supporting staking capabilities.

The next version of the Polymesh testnet is expected to launch in Q4 of 2020, with the full mainnet launch in Q1 of 2021.

Polymath

Founded in 2017, Polymath is a service provider for the digital securities sector, with operations based in Toronto, Canada.  To date, Polymath has helped facilitate the creation of hundreds of digital securities.

 

In Other News

Polymath is not the only company to note the need for purpose-built digital security solutions.  We have recently taken a closer look at another example of this, as NEM gears up for the launch of its offering, ‘Symbol’.

Make sure to peruse our recent interview with NEM Ventures Managing Director, Dave Hodgson.  Here, we learn more about Symbol, and why such a solution is needed.

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Digital Securities

‘Mrs. Antonia’ Scam Preys on 1M Clients Affected by ePayments FCA Imposed Lockdown

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Mrs. Antonia

Twitter hacks, news outlet impersonations, Ponzi schemes, and now ‘Mrs. Antonia’ – the world is rife with scams, perpetrated by criminals looking to prey on the naïve.

Although less publicised, the recent ‘Mrs. Antonia’ scam is being targeted towards more than 1 million clients of ePayments that lost access to their financial holdings, months ago.

Mrs. Antonia

In this new scam, it appears that bad actors are looking to prey on those that have already endured trying times.

Users of payment processing platform, ePayments, which have had their funds frozen, are being contacted by a person or group posing as ‘Mrs. Antonia’.  In these instances, ‘Mrs. Antonia’ promises the affected ePayments clients that they can help ‘unfreeze’ their funds – this, however, is a lie.  The person or people behind the scam go as far as creating fake testimonials from people claiming that ‘Mrs. Antonia’ did indeed help them.

Unfortunately, Mrs. Antonia does not exist, and she cannot help.  The actions of these criminals have prompted ePayments to release a statement, informing their clients of this scam.

“PLEASE be aware – this is a scam. We are unable to release any customer funds at present and so any claims by any third parties of this nature are not true.”

Extended Lockdown

For months now, over 1 million clients of payment processor, ePayments, have had access to their funds revoked, due to a Financial Conduct Authority (FCA) imposed lockdown.  To this day, the reasoning behind these measures is not fully known, aside from lapses found in ePayments anti-money laundering (AML) procedures.

With this lockdown extended for months now, it is understandable that those affected are growing impatient.  As a result, many account holders might just be swayed by the promises made by these criminals.

Upon addressing the situation, ePayments has attempted to ease the fears of its clients by stating,

“We recognise that time has elapsed since we suspended business and we are truly sorry that we have put you, our customers, in this position. We wish to assure you once again that your funds are still safeguarded as normal.”

Scams Aplenty

Sadly, we must all be vigilant, and on guard for scams.  They are increasingly prevalent, as we increase our reliance on technology, with the ePayments situation simply being one example.

The world of blockchain is no stranger to scams, and has resulted in multiple which were staggering in size.

Onecoin
  • $4 billion stolen through Ponzi scheme
 Plustoken
  • $6 billion defrauded from investors
  • Recently arrested 27 individuals connected with the scam

These two scams alone affected millions of investors, defrauding them of roughly $10 billion.  While actions have been taken in an attempt to hold the offenders accountable for their actions, the sad truth is that the vast majority of those affected will never see their funds again.

ePayments

Founded in 2010, ePayments is a global payments processor based out of the United Kingdom.  Through its services, ePayments has amassed over 1million clients, representing 100 countries.

CEO, Mikhail Rymanov, currently oversees company operations.

*Upon contacting ePayments for commentary, no response was received*

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Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies involves a high level of risk.

This risk is  higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio.

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