INX Limited, a company that filed an F-1 with the Securities and Exchange Commission (SEC) in 2019, that was subsequently approved earlier this year, will kick off its public sale of the digital asset this week on August 25, 2020. The security token (INX) will entitle purchasers pro rata distribution of the company’s net cash flow from operations according to the filing.
INX Limited is a Gibraltar domiciled firm that is developing INX Trading Solutions, described as a single entry-point for users for the trading of cryptocurrencies, security tokens, and their derivatives. Up to 130 million INX tokens may be sold generating $117 million ($0.90 a token) before fees if the offering is completely sold out. The minimum hurdle has been set at $7.5 million.
The company has assumed that 100% of the INX Tokens sold in this offering will be sold to non-U.S. persons. INX has enlisted the assistance of A-Labs to market the offering outside the US.
The offering notes that there is currently no secondary market for the digital security and no guarantee of one but obviously at some point one would anticipate it will trade on an exchange, ATS, or some marketplace.
INX touts the fact it has worked directly with regulators from the beginning as opposed to many digital asset platforms that skirted the laws only to decide to become compliant after the fact. As well, management points to the fact it developed its own tech stack as opposed to licensing it from a 3rd party provider.
INX benefits from the participation of managers as well as advisors that have traditional financial markets experience. Founder and President Shy Datika has more than 25 years of experience in the banking and finance industry and is a founder and former CEO of ILS Brokers, a multinational brokerage house based in Tel-Aviv, Israel.
The INX security token offering is interesting as it is global, compliant with a digital asset that is both a security as well as a utility. As a security, investors may generate income as well as a capital gain. As a utility, it may be used to cover fees.
The company states that there is a capped supply of 200 million tokens and anticipate this number will decline over time creating more value for remaining holders.
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