According to INX, about 60% of the proceed from the IPO will be used as a Cash Fund which can easily be distributed to token holders in case of liquidation.
Digital assets trading platform INX Limited has announced April 22 as the end date of its ongoing token offering. The company prides itself as a United States Securities and Exchange Commission (SEC) licensed outfit and the proposed closure of the INX token sales is billed to usher in a new phase wherein the core of the firm’s products will be rolled out.
INX Token Offering
As detailed in the official announcement, the closing price for the token is pegged at $0.90, and INX Limited will seek to list it on at least one public trading platform by the end of May 2021. The company also unveiled plans to launch its Digital Asset trading platform immediately after its ongoing Initial Public Offering (IPO) comes to an end.
“INX has secured its position as the first to execute an SEC-registered digital security IPO for both retail and institutional investors. We look forward to opening in the secondary market with equal success,” said Shy Datika, the Chief Executive Officer of INX Limited.
The plans to sell 130 million INX tokens for $117 million in an IPO were first unveiled back in 2019 and the Initial Public Offering was launched in August 2020 after being approved by the US SEC. The firm in its announcement of the end of its token sales has not revealed how much has been accrued thus far, however, investors will have a dual benefit holding the tokens as they are classified as both a security and a digital currency.
According to the firm, about 60% of the proceed from the IPO will be used as a Cash Fund which can easily be distributed to token holders in case of liquidation. The remaining 40% is billed to be used for normal exchange operations including global market activity, marketing, and Research and Development amongst others.
When the INX Digital Trading platform is fully operational, it will provide investors room for a wider range of financial instruments and investment possibilities, increased access to capital, and reduced trading costs which will be made possible as a result of the adoption of efficient processes.
INX Joins Other Digital Currency Outfits Eyeing a Public Market Move
The move by INX Limited to go public pushes to a new level the growing trend by other renowned trading platforms including Coinbase cryptocurrency exchange and social trading platform eToro trailing similar paths.
While Coinbase is billed for a direct listing, INX is reportedly exploring options to merge with Valdy (TSXV: VALDY), a Canadian shell company that has entered an agreement to purchase the outstanding securities of INX Limited. This arrangement according to the report is expected to take the firm public, but no official position has been revealed by the company regarding this.
As the cryptocurrency and digital asset ecosystem continue to advance onto the mainstream adoption era, the emergence of outfits like INX Limited will provide additional options for investors to gain exposure to the emerging asset class under a regulated environment.