INX To Launch A $117M Security Token IPO; Will Use Funds to Develop Its Crypto Exchange
INX, a Gibraltar-based crypto exchange, would finally conduct the Initial Public Offering (IPO) on August 24 for its SEC-registered hybrid token.
The exchange aims to sell its hybrid token at $0.90 apiece ad raise nearly $111 million from the sale of 133 million tokens. The IPO would also be a first of its kind, given it is the first security offering registered with the US Security and Exchange Commission (SEC).
Before the current offering, almost all STOs only filed notices to the regulators and were mostly unregistered, which kept away institutional investors for fear of scams. The INX exchange’s upcoming IPO took almost two years.
The INX token is being called a hybrid because it would act like a utility and security token, where INX holders can utilize it for different operations on the exchange like paying the transaction fee, and the token would also double down as a form of the company share.
The firm revealed that the proceeds from the IPO would be utilized for INX’s regulated exchange INX Trading Solutions, a $62 million cash fund would also be kept separate for maintaining the platform in case of data breaches, trading execution errors or counterparty defaults.
The court filings submitted by INX exchange also revealed that President Shy Datika currently holds 7.25 of the total supply, which is around 9.4 million INX tokens.
Apart from the president, Doren Cohen, a CEO of the brokerage firm who is assisting the exchange conducting the IPO, i.e., A-Labs also holds around 4.55 million INX tokens and 9 of the ten companies on the advisory board would receive approximately 2 million tokens at a discounted price of $0.01 apiece.