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
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.
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.
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.
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.
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.
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.
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 breaks down an investors options into three steps.
- An investor will purchase INDX tokens to gain access to the passive income derived from masternode revenue.
- Investors continue holding INDX as its inherent value rises along with the funds NAV.
- 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
BitClave Reaches Settlement with SEC over 2017 $25M ICO
This week, BitClave PTE Ltd. reached a settlement with SEC regulators. As part of the agreement, the company must return funds acquired in its 2017 ICO in which the firm secured $25 million. The news showcases further SEC interdiction into the crypto sector. Additionally, it demonstrates some long-awaited relief for the BitClave project.
According to the SEC filing, BitClave violated US securities regulations when they hosted the event. Specifically, regulators charged that the Consumer Activity Tokens (CAT) received by investors were, in actuality, unlicensed securities. Importantly, the firm’s ICO saw investment from over 9,5000 international participants.
Discussing the ruling, Kristina Littman, the SEC Enforcement Division’s Cyber Unit Chief shed some light on regulators’ thought-process during the trial. She explained that the ruling provides relief to any investors who felt shaded by the company. Additionally, she touched on the overall goal of the new SEC campaign. Littman stated that the SEC must ensure that all issuers of securities, traditional or digital, comply with Federal registration requirements.
The BitClave platform aims to develop a decentralized search ecosystem. Developers seek to create, administer, and market a blockchain-based search platform for targeted consumer advertising. Importantly, BitClave introduces some truly unique features to the market.
For example, BitClave users can decide who gets access to their personal data. Additionally, they receive a payment in the form of tokens for sharing this information. In this manner, users receive welcomed advertisements. Best of all, companies know their advertising efforts only go towards people interested in their products or services.
From the start, BitClave saw immediate success upon entering the market. The firm secured $22 million of its $25 million ICO goal in a mere 32 seconds. Impressively, the platform already had 64,000 registered users. Importantly, these investors received Consumer Activity Tokens (CAT) for their participation.
The company distributed 550,842,000 CAT tokens during the event. The total supply of CAT Tokens is set at 2 billion. Interestingly, developers kept the unissued tokens locked up in a smart contract. These tokens are to release at a later date to hep supplement growth in the platform.
At the time, BitClave’s founder and CEO, Alex Bessonov, called the results “spectacular.” He praised the community for their early support on the project, and he described some of the future releases scheduled on the firm’s roadmap. Now, given the SEC ruling, these promises could see the market.
SEC Racks Up Wins
The ruling follows a string of SEC victories. Just this week, the messaging giant, Telegram withdrew its TON blockchain filing due to pushback from regulators. Specifically, the project hit major snags after a federal judge ruled that the company couldn’t issue GRAM tokens to investors. Telegram appealed the decision and asked for permission to issue tokens to non-US investors. The SEC denied the appeal shortly after its filing.
BitClave – What the Future Holds
Despite the ruling, BitClave appears to be in good faith. The platform issued a statement celebrating the end of the long trial. Now, BitClave is free to pursue its goal to provide internet users with the tools to regain control of their data.
InCore Bank Launches Access to Digital Assets
This week, the Financial Market Supervisory Authority (FINMA) raised eyebrows when regulators authorized InCore Bank to begin blockchain operations. Now, the firm can provide institutional clients with the ability to trade, hold, and transfer digital assets. Additionally, regulators gave the green light to the firm’s tokenization capabilities.
The news represents a major milestone for the EU market. It marks the first Swiss business-to-business bank approved to operate in the sector. Importantly, InCore is an established bank in the region. As such, there is great potential in their strategy to offer major financial institutions and service providers regulated access to blockchain assets.
Speaking on the launch, Mark Dambacher, CEO of InCore Bank described some of the benefits the new platform introduces to the sector. He explained that clients now have the ability to offer users digital assets directly, via the InCore platform. Additionally, he spoke on how this product allows corporations to forgo expensive infrastructure costs associated with the creation of a new blockchain ecosystem.
Dambacher also described the firm’s overall goal to bridge the gap between digital and traditional assets. InCore plans to accomplish this monumental task through the integration of regulated customer protections, safety standards, and an easy to operate interface. In this way, the company can simplify the tokenization process and make it more attainable to clients globally.
InCore now offers a full suite of blockchain-based services. These products cover the gambit from end-to-end business solutions, all the way to integrated e-banking. Since InCore is already in operation in the banking sector, the platform can bring some truly unique features to the market including customized digital asset reporting.
According to company executives, InCore seeks to expand its blockchain strategy in the coming months. The firm already has plans to include brokerage, custody, and transfer services to security tokens. This maneuver is a smart decision as the majority of tokenized assets fall into the security token category at this time.
First Client Secured
InCore’s first-mover approach to the market is already paying off. The firm secured a partnership with Maerki Baumann & Co. AG. Notably, Maerki Baumann & Co. is a subsidiary of InCore’s parent company. Now the firm intends to gain valuable positioning in the Swiss market.
InCore Bank AG
InCore Bank AG is a well-recognized Swedish transaction bank based out of Zurich-Schlieren. The firm entered the market in 2006 with the goal to simplify the banking process and provide clients with a more robust banking solution. Today, the company is known for its in-depth knowledge of applicable regulations and processes.
Its Time to Tokenize
InCore Bank is now ready to celebrate a healthy lead in the market. Tokenization continues to be a hot topic across the EU. As such, Swiss regulators continue to make decisions to keep their country relevant in the digital economy of tomorrow. For now, InCore could be the launching pad for the tokenization of the swiss markets.
GSX Group Tokenizes tribeOS Shares through GRID Platform
First on the Docket
GRID, a product of the GSX Group, is a promising new platform built on the STACS protocol. The team at GSX Group has now announced the first successful tokenization of a company’s shares on the GRID platform – tribeOS.
This tokenization represents the first of its kind on the GRID platform. Beyond tokenizing equity shares in a company, GRID also has the capability to do the same with both, funds and debt, instruments.
Upon announcing the listing of tribeOS tokenized shares, representatives from each company took the time to comment.
Matt Gallant, CEO of tribeOS, stated,
“Using the GRID to create and deploy our shares in digital form allows for a quick and cost-effective route into the digital space. The tribeOS and GSX Group teams share a vision and ethos in promoting the many use cases that blockchain provides and driving greater adoption levels globally. We look forward to working with the GSX to achieve this collective goal…Our ambition is to deliver dynamic cost-saving solutions, broaden the accessibility of capital, and help issuers in terms of speed-to-market. We are working with other companies who intend to use the GRID to enter into the fast-developing world of digital securities. I’d like to thank tribeOS for putting their trust in us and the GRID. This is just the first step on the road to mainstream adoption.”
Nick Cowan, CEO of GSX Group, stated,
“We are excited to have completed the successful digitalization of tribeOS’s shares. tribeOS is the first issuer to utilize our GRID venue, and we look forward to welcoming further pioneering companies who wish to push the boundaries of innovation and accelerate the adoption of blockchain within the capital markets.”
News of the tribeOS listing comes mere weeks after GRID was first launched. At the time of launch, GSX CEO, Nick Cowan, stated,
“We have worked diligently over the past year building a unique service offering with our own technology solution for capital markets. As a venue to create and deploy securities in tokenised form, the GRID will provide the perfect venue for issuers to make the jump into what we call ‘Smart Securities’ as we push to redefine how those securities are traded, settled, and cleared using our bespoke blockchain.”
At the time of launch, we took a look at what GRID is, and the protocol fueling the platform behind the scenes.
While the tokenization discussed is a testament to the viability of what GSX has built, it would not be possible without tribeOS having previously hosted a successful DSO. This event, which was held out of Bermuda, notably saw participation from crypto-giant, Bitmain.
We previously covered this event in a series of articles, looking at the company’s regulatory approval, and details of the offering.
Founded in 2017, tribeOS maintains headquarters in Texas, United States. Above all, tribeOS develops solutions meant to eliminate fraud in advertising.
CEO, Matt Gallant, currently oversees company operations.