Earlier in May, INX Limited, the Gibraltar-based blockchain trading platform, announced the completion of the sale of the INX token, which was made through an IPO. This event marked the first time that the US Securities and Exchange Commission had approved an IPO.
The Securities and Exchange Commission consistently classifies most cryptocurrencies as securities. In fact, this stance was at the forefront of the commission’s campaign against startups that released digital assets during the first coin supply craze in 2017 and 2018.
Since then, security token offerings have been hailed as the next big thing for token-based aggregation, and ICOs are considered anathema by many financial regulators around the world. In fact, governments of many countries have created legal frameworks to raise organized capital using digital asset tokens.
$ 125 million INX Token
As Cointelegraph previously reported, INX announced on May 3 that it had completed a $ 125 million SEC-approved token placement. This news marked the end of the new symbol introduction process that began in August 2020.
At the time, the company allegedly wanted to raise $ 117 million through a SEC approved STO. Finally, blockchain trading exceeded its original target of over $ 8 million, and more than 7,200 private and institutional investors entered the list of digital tokens.
The actual listing of public tokens brought in nearly $ 85 million, adding $ 7.5 million from a private sale and another $ 32.2 million from a private listing on the Toronto Stock Exchange. INX is said to be using the money raised to build the planned trading platform for cryptocurrency tokens and security tokens.
In fact, INX is said to see a situation where the platform acts as a listing partner for US companies looking to raise money through STOs. In addition to providing trading services for digital assets, the planned INX center will also allow clients to issue and sell security tokens.
In a note to Cointelegraph, Datika Shay, co-founder of INX, revealed that the company already had 30 companies in development and was waiting to release its security tokens when the trading platform went live. According to Datika, digital real estate adoption is becoming increasingly popular among institutional investors.
A list of INX tokens can also provide direct evidence that cryptocurrencies are amenable to capital accumulation. As part of an announcement earlier in May, the blockchain trading company announced that half of the money raised in a premium coin IPO came from cryptocurrencies in Bitcoin Stable Coins (BTC), Ether (ETH) and USD Coin (USDC).
In fact, INX partly explains the success of the IPO by the fact that both individuals and institutional investors from 75 countries around the world were able to participate in cryptocurrencies despite their “blue sky limits” – the level of anti-government fraud in the United States, the countries it reaches. Usually exporters. Stocks with international subscribers.
In fact, INX reported at the time that more than 61,000 investors had shown an interest in the IPO but were unable to invest due to the aforementioned restrictions.
Digital securities are at the heart of the new capital market
The global capital market, valued at around $ 200 trillion, is often considered predisposed to cryptocurrency and blockchain disruptions. From decentralized finance – also known as DeFi – primitive anti-regression, to real asset interfaces, to legacy financial institutions looking to adapt new technology to their existing protocols, digitizing the stock market appears to be on the agenda of many stakeholders. …
Datika also mentioned this emerging trend when it announced the completion of the token list, and even highlighted the trend as a large part of the company’s ambitions. At the time, the leader of INX indicated that the company had anticipated a new model called Capital Markets 2.0, in which digital securities would replace stocks as a way to raise capital.
According to Datika, cryptocurrency exchange will be central to this new paradigm, with financial assets being an important factor in blockchain technology. Douglas Porthwick, CEO of INX, told Cointelegraph of his comment on the potential for cryptocurrencies and the blockchain to drastically affect the global capital market:
Global capital markets are currently stuck in time differences. Take US stocks, for example. It is open 5 days a week from 9:30 a.m. to 16:00 a.m. Meanwhile, digital securities are traded 24/7. US stocks require a transfer agent, while the digital blockchain securities firm chooses permanent ownership.