In July, token exchange INX Limited (INX) announced its intention to raise funds through a traditional initial public offering (IPO). The IPO commenced in August, making INX the “first-ever SEC-registered security token IPO”.
The IPO is off to a hot start, as INX announced today that it has now successfully cleared the first financial marker set out in its capital raise – $7.5million USD, the minimum requirement for the offering.
This minimum threshold marker is an important one for multiple reasons:
- It represents the minimum threshold of funds needed for the IPO to go forth with token issuance.
- It marks the figure in which INX can begin accepting cryptocurrencies as a form of payment.
- $7.5M USD represents the minimum amount needed to finish developing, and to launch its platform.
Now that the minimum threshold has been met, INX can begin accepting cryptocurrencies as a form of payment on September 14th, 2020. Cryptocurrencies that will be accepted are: Bitcoin (BTC), Ethereum (ETH) and USD Coin (USDC).
By accepting these assets, the offering will be more appealing and accessible to a broader range of investors.
The road to this IPO was a long one for INX; the company has been trying to get the IPO off the ground for the better part of 2 years. This lengthy period was the result of choosing to raise funds with an IPO which require the approval of the SEC and are notoriously onerous.
For those interested in perusing the prospectus documents submitted by INX for IPO approval, click HERE.
The INX offering is particularly noteworthy because it is the first of its kind to be approved and regulated by the SEC – a ‘notice of effectiveness’ was awarded to INX by the SEC on August 20th, 2020.
Being structured as an IPO, and regulated by the SEC, means that access to these security tokens is no longer limited to just accredited investors. Rather, the event provides the public at large the ability to purchase and hold these yet-to-be distributed tokens.
Beyond the manner in which INX has structured this IPO, the event caught the attention of many due to its sheer scope. With a goal of raising $117M USD, the event will represent one of the largest IPOs ever to be associated with digital assets.
Now that investment in the INX IPO is open to select digital assets, it should be interesting to see if the company can reach its lofty goals.
If there was a theme surrounding the INX IPO, it is that the event is comprised of a series of ‘firsts’. Continuing this trend, an interesting example of this is the transparency surrounding the event.
With the IPO taking place ‘on-chain’, anyone can publically view approved or ‘whitelisted', applicants/buyers of the event. This data, which is normally not accessible by the public, provides insight into how many investors have satisfied KYC and AML requirements, and are now approved to take part in the sale.
Notably, this entire process is facilitated by TokenSoft – a popular company within the digital securities sector – as it acts as a transfer agent.
Founded in 2017, INX maintains headquarters in Gibraltar. Above all, the team at INX is working to develop a comprehensive trading platform which supports, not only cryptocurrencies, but security tokens and derivatives, as well.
Company operations are overseen by the following individuals.