INX (company)

Last updated

INX is an electronic platform for trading blockchain assets. In August 2020 the company became the first company to be cleared by the U.S. Securities and Exchange Commission (SEC) to issue a registered security token in its Initial public offering (IPO). [1] [2]

Contents

Overview

INX was founded in 2017 by Shy Datika, the President and controlling shareholder. [3] He was formerly the co-founder and CEO of Anyoption [4] and ILSBrokers. [5] On its board of directors is David Weild IV, previously vice chairman of NASDAQ. [6] The company is incorporated in Gibraltar and has three offices: in Israel, the U.S. and Gibraltar. It has two subsidiaries in Delaware: INX Services and INX Digital. [3]

Initial public offering

In February 2018 the company filed a registration statement with the U.S. Securities and Exchange Commission (SEC). [7] [8] The company's initial public offering, which launched in August 2020 [9] [10] offers 130 million INX tokens to the public, based on an ERC-20 token standard, with a minimum investment of $1,000. [11] The INX token holders will be entitled to a 40% profit share of the company's net cash flow, not including revenues from the initial sale, but they won't be equity holders of the firm. The tokens have features of both utility and security tokens. [3]

in February 2021 The company is set to raise an additional 25 millions Canadian dollars in the TSX Venture Exchange. [12]

Subsidiaries

The company's U.S. subsidiary, INX Digital, will operate a cryptocurrency trading platform and expects approval to operate in forty - U.S. states by the second quarter of 2021. [13]

In October 2020 INX set to acquire broker-dealer and ATS Openfinance, subject to regulatory approvals. Openfinance raised 25 millions dollars since 2017 and it's valued between 40 to 70 million dollars. [14]

In December 2020 SolidBlock company announce it will list 150 million dollars in real estate security tokens on INX. [15]

In February 2021 Valdy Investments (TSXV: VLDY.P) announced it will acquire all of the issued and securities of INX. [16]

Related Research Articles

An initial public offering (IPO) or stock market launch is a public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors. An IPO is underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges. Through this process, colloquially known as floating, or going public, a privately held company is transformed into a public company. Initial public offerings can be used to raise new equity capital for companies, to monetize the investments of private shareholders such as company founders or private equity investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded.

Dave & Busters American restaurant and entertainment business

Dave & Buster's is an American restaurant and entertainment business headquartered in Dallas. Each Dave & Buster's has a full-service restaurant and a video arcade. As of March 2021, the company has 140 locations in the United States and Canada.

eToro Social trading and multi asset brokerage company

eToro is an Israeli social trading and multi-asset brokerage company that focuses on providing financial and copy trading services. It has registered offices in Cyprus, Israel, the United Kingdom, the United States, and Australia. In 2018, the company's value was $800 million.

A special purpose acquisition company, also known as a "blank check company" is a shell corporation listed on a stock exchange with the purpose of acquiring a private company, thus making it public without going through the traditional initial public offering process. According to the U.S. Securities and Exchange Commission (SEC), "A SPAC is created specifically to pool funds in order to finance a merger or acquisition opportunity within a set timeframe. The opportunity usually has yet to be identified". SPACs raised a record $82 billion in 2020, a period sometimes referred to as the "blank check boom".

Ripple is a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc., a US-based technology company. Released in 2012, Ripple is built upon a distributed open source protocol, and supports tokens representing fiat currency, cryptocurrency, commodities, or other units of value such as frequent flier miles or mobile minutes. Ripple purports to enable "secure, instantly and nearly free global financial transactions of any size with no chargebacks." The ledger employs the native cryptocurrency known as XRP.

Fundrise is a Washington, D.C.-based financial technology company founded in 2010 that operates an online investment platform. Fundrise has been labeled as the first company to successfully crowdfund investment into the real estate market.

Nutanix, Inc. is an American cloud computing company that sells hyper-converged infrastructure (HCI) software, cloud services, and software-defined storage.

In the United States under the Securities Act of 1933, any offer to sell securities must either be registered with the United States Securities and Exchange Commission (SEC) or meet certain qualifications to exempt it from such registration. Regulation A contains rules providing exemptions from the registration requirements, allowing some companies to use equity crowdfunding to offer and sell their securities without having to register the securities with the SEC. Regulation A offerings are intended to make access to capital possible for small and medium-sized companies that could not otherwise bear the costs of a normal SEC registration and to allow nonaccredited investors to participate in the offering. The regulation is found under Title 17 of the Code of Federal Regulations, chapter 2, part 230. The legal citation is 17 C.F.R. §230.251 et seq.

Blockchain Capital is a venture capital company. The company was founded in October 2013 by Bart Stephens, Bradford Stephens and Brock Pierce, chairman of the Bitcoin Foundation. Blockchain Capital is one of the most active and oldest venture investors in blockchain technology with a portfolio of more than 70 projects financed and $275M assets under management.

Kraken is a US-based cryptocurrency exchange, founded in 2011. The exchange provides cryptocurrency to fiat trading, and provides price information to Bloomberg Terminal. As of 2020, Kraken is available to residents of 48 U.S. states and 176 countries, and lists 40 cryptocurrencies available for trade. Kraken played a role in attempting to recover funds lost by investors during the 2014-15 Mt. Gox implosion. According to CoinMarketCap, Kraken is the 4th largest cryptocurrency exchange in the world.

Bitfinex is a cryptocurrency exchange owned and operated by iFinex Inc., which is headquartered in Hong Kong and registered in the British Virgin Islands. Their customers' money has been stolen or lost in several incidents, and they have been unable to secure normal banking relationships.

An initial coin offering (ICO) or initial currency offering is a type of funding using cryptocurrencies. It is often a form of crowdfunding, however a private ICO which does not seek public investment is also possible. In an ICO, a quantity of cryptocurrency is sold in the form of "tokens" ("coins") to speculators or investors, in exchange for legal tender or other cryptocurrencies such as Bitcoin or Ethereum. The tokens are promoted as future functional units of currency if or when the ICO's funding goal is met and the project successfully launches.

EOS.IO is a blockchain protocol based on the cryptocurrency EOS. The smart contract platform claims to eliminate transaction fees and also conduct millions of transactions per second.

OKEx

OKEx is a Malta-based cryptocurrency exchange that provides a platform for trading various cryptocurrencies. Some of exchange's core features include spot and derivative trading. It was founded in 2017.

Root, Inc. American insurance company

Root Insurance Company provides car insurance to drivers in 30 U.S. states. Root requires drivers to download their mobile app and perform test driving for several weeks while the app monitors the driving behavior in the background. If the driver passes the driving test, they are offered a premium which is based in part on the driving score calculated during the test drive. Root advertises that they only insure good drivers in order to keep premiums lower than other insurance companies.

A security token offering (STO) / tokenized IPO is a type of public offering in which tokenized digital securities, known as security tokens, are sold in cryptocurrency exchanges, or security token exchanges. Tokens can be used to trade real financial assets such as equities and fixed income, and use a blockchain virtual ledger system to store and validate token transactions.

Paxos Trust Company is a New York-based financial institution and technology company specializing in blockchain, which digitizes and mobilizes assets. The company's product offerings include a cryptocurrency brokerage service, asset tokenization services, and settlement services. ItBit, a bitcoin exchange run by Paxos, was the first bitcoin exchange to be licensed by the New York State Department of Financial Services, granting the company the ability to be the custodian and exchange for customers in the United States.

Bancor Protocol is a standard for decentralized exchange networks used to allow for the automated conversion of cryptocurrency tokens into other tokens, including across blockchains, without the need for an order book or counterparty to facilitate the exchange. Bancor invented the world’s first blockchain-based automated liquidity pool, or automated market maker (AMM) called a Smart Token, a digital currency with an embedded converter that allows it to be issued or exchanged automatically for any token in its network. Bancor Network consists of all the different tokens utilizing the Bancor Protocol and connected through BNT, the Bancor Network Token, which serves as the hub token for the network through which any token can be converted into any other token.

Decentralized finance is an experimental form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments, and instead utilizes smart contracts on blockchains, the most common being Ethereum. DeFi platforms allow people to lend or borrow funds from others, speculate on price movements on a range of assets using derivatives, trade cryptocurrencies, insure against risks, and earn interest in savings-like accounts. Some DeFi applications promote high interest rates, but are subject to high risk. By October 2020, over $11 billion was deposited in various decentralized finance protocols, which represented more than a tenfold growth during the course of 2020. As of January 2021, approximately $20.5 billion was invested in DeFi.

Uniswap Digital currency exchange

Uniswap is a decentralized cryptocurrency exchange which facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts. As of October 2020, Uniswap is estimated to be the largest decentralized exchange and the fourth-largest cryptocurrency exchange overall by daily trading volume.

References

  1. ↑ Ariel Shapira (September 14, 2020). The next step in the evolution of finance. Jerusalem Post.
  2. ↑ Oliver Knight (August 27, 2020). INX Limited becomes the First SEC-cleared security token IPO. Yahoo! Finance.
  3. 1 2 3 Roy Katsiri (August 24, 2020). Israeli co INX set for $117m security token IPO. Globes.
  4. ↑ Avi Mizrahi (January 18, 2016). An interview with Shy Dattika. Finance Magnates.
  5. ↑ Meir Orbach (August 21, 2019). Crypto company INX wants to Raise $130 million in a U.S. IPO. Calcalist.
  6. ↑ JD Alois (April 21, 2020). Digital assets: INX token initial public offering said to be approved. Crowdfund Insider.
  7. ↑ Form F1 registration statement. SEC.
  8. ↑ Shiri Habib-Valdhorn and Roy Katsiri (August 20, 2019). Israeli co INX files for first-ever US SEC recognized ICO. Globes.
  9. ↑ Registration statement. August 20, 2020. SEC.
  10. ↑ Notice of Effectiveness. SEC.
  11. ↑ Arnab Shome (August 21, 2020). INX to Launch $117 Million Hybrid Token IPO Next Week. Finance Magnates.
  12. ↑ Daniel Kuhn (February 28, 2021) Crypto Exchange INX to Raise C$25M, List on TSVX for ‘Added Credibility’. Yahoo Finance.
  13. ↑ JD Alois (September 16, 2020). INX Digital Security Offering Hits First Hurdle, in the US Currently Investors in 14 States May Participate but Must Adhere to Suitability Rules. Crowdfund Insider.
  14. ↑ Aziz Abdel-Qader (October 27, 2020). INX limited to acquire Openfinance broker-dealer and ATS Business. Finance Magnates.
  15. ↑ (December 30, 2020). SolidBlock to list USD150m in real estate security tokens on INX. Property Funds World.
  16. ↑ (February 23, 2021). Valdy Investments Ltd. Announces Proposed Qualifying Transaction with INX Limited. Yahoo Finance.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.