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