Cryptocurrency trading platform INX, plans to raise up to $130 million through an IPO in the U.S., an industry first.
On Monday (Aug. 19), the Gibraltar-based company filed a draft F-1 with the US Securities and Exchange Commission (SEC) to sell 130 million INX tokens, which are based on Ethereum’s ERC-20-standard, to retail and institutional investors.
INX aims to set up two trading platforms – differentiating between security and non-security tokens. It also plans to obtain money transmitter licenses to operate in 8 U.S. states by the end of 2019, and in “most” U.S. states by the end of next year.
“When fully operational, we expect to offer professional traders and institutional investors trading platforms with established practices common in other regulated financial services market, such as customary trading, clearing, and settlement procedures, regulatory compliance, capital and liquidity reserves and operational transparency,” reads the draft F-1 (the SEC’s prospectus form for foreign issuers). “In the future, the Company intends to establish a platform for the trading of derivatives such as futures, options and swaps.”
INX, which was founded by financial market, cryptocurrency and technology experts with a shared vision of revolutionising the world of finance and financial crypto trading, had announced in January 2018 its submission of a confidentially-filed draft registration statement to the SEC for an IPO of the INX Token.
The company plans to utilise the IPO proceeds across functions, including research and development (up to $8 million), sales & marketing (up to $2.93 million), regulatory and legal (up to $3.2 million) and product development (up to $1.6 million), among other expenses, according to the prospectus.
INX has notable advisers including David Weild, former vice-chairman of Nasdaq, Thomas K. Lewis, former CEO of the predecessor company to TD Ameritrade, Jameson Lopp, CTO of Casa and Mark Yusko, CEO of Morgan Creek Capital.
Early investors are also some pretty prominent figures in the crypto and financial worlds
including litecoin creator Charlie Lee and monero project member Riccardo Spagni.
Successful fundraising would make INX one of the very few IPOs in the cryptocurrency arena.
Last year, mining subscription company Argo Mining raised $32.5 million through an IPO on the London Stock Exchange.
INX still has to wait for SEC’s decision on the company’s draft prospectus before it can conduct a token sale.