Crypto Community Bashes First-Ever STO IPO Advisors for Shilling INX which they got for 98.8% Price Cut
The first-ever Security Token Offering (STO) held its IPO for 130 million INX tokens on Tuesday following approval from the US Securities and Exchange Commission (SEC). The Ethereum-based token was for sale at a price of $0.9 per token.
The IPO came about a year after the project issued its preliminary prospectus, which could become the largest IPO to date in the crypto industry if it manages to raise its targeted $117 million (originally targeted $130M).
A startup with 14 employees has Israeli consulting firm A-Labs Finance and Advisory as its underwriting for public offering. A-Labs’ owner Doron Cohen is the founding partner of INX.
They were founded in 2017 by Shy Datika, the controlling shareholder (31%) and president of INX and Cohen, who, along with Triple-V, owns a 10% share of the company.
But the real event hasn’t been about the INX being the first STO, but the advisors of the project and in the middle of it is Casa’s Jameson Lopp, who received backlash from the crypto community for shilling a “shitcoin.”
“It enables non-accredited investors to get exposure to crypto exchange cash flows. It's kind of like BNB except regulatory compliant,” is how Lopp explained the project.
Lopp is actually eligible to purchase 25,000 tokens at $0.01 per piece, which is 98.8% lower than the price it is currently available for the public.
We have Bitcoin maxis running ICO cash grabs at 90X the presale price, yes you read that right.
NINE ZERO X
What an absolute scam artist and larper https://t.co/HFeLqJAm5O
— moon is tweeting (@MoonOverlord) August 25, 2020
“Don't conflate permissionless altcoins that try to compete with bitcoin to this, a regulated security token for a specific company,” said Lopp who finds it “interesting because historically the most profitable businesses in the crypto ecosystem are exchanges,” and “this is a very different beast.”
oh lol lopp didn't disclose he was given 250k usd worth of $inx tokens to shill it
bruh I thought you were supposed to be rich or at least ethical… if you were going to dump 250k on us, a little heads up would be nice (and I'm pretty you're legally supposed to tell us lol) https://t.co/45tpQurpiB
— CryptoGainz (@CryptoGainz1) August 25, 2020
200 million INX tokens have already been minted, out of which 35 million are reserved for the management, employees, early investors, and advisors. Another 35 million have been put into a reserve fund for acquisitions and other operational expenses.
Token holders are entitled to 40% of the adjusted operating cash flow, which is so far negative $4 million and advisors are set to make $225,000.
Blockstream CSO, Samson Mow, who is also one of the advisors and eligible to buy up to 100k of INX's at $0.01 per token said he first invested in 2018 and that “the plan is for the INX security token to be issued on Liquid via Liquid Securities, however that will take time and approval from regulators.”
“isnt a scam”
sure buddy https://t.co/c6DrPf1EHK
— Majin Jackson (@majinsayan) August 26, 2020
The exchange is estimated to launch in Q1 2021 with listings and the token trading in Q2 of next year.