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Cryptocurrency Trading Platform ‘INX” Plans to Raise $130M with Security Token IPO
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A new cryptocurrency trading platform plans to host a $130M security token IPO registered with the SEC.
In a surprising development, INX plans to sell its own security tokens which will be registered with the SEC. The trading platform filed a draft prospectus with the SEC on Monday to sell 130M INX tokens built on Ethereum’s ERC-20 standard.
Each INX token holder will be entitled to 40% of the company’s cash flow. INX will also be setting up two trading platforms: one for security tokens and another for non-security tokens. It will also be pushing to get the required money transmitter license, U.S broker-dealer license, and registration for its alternative trading system (ATS). INX is currently based in Gibraltar.
According to the prospectus, INX plans to be licensed in 8 U.S. states by the end of 2019 and in ‘most’ states by the end of next year.
The exchange said in a press release:
“When fully operational, we expect to offer professional traders and institutional investors trading platforms with established practices common in other regulated financial services markets, such as customary trading, clearing, and settlement procedures, regulatory compliance, capital and liquidity reserves and operational transparency,”
The IPO will go to fund research and development ($8M), marketing ($2.93M), legal concerns ($3.2M), and product development ($1.6M). The exact date for the security token IPO is yet to be announced and is pending SEC approval.
Do you believe INX can get the necessary approvals? Let us know your thoughts in the comments below.
Image courtesy of The Motley Fool.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
