INX hopes to raise $111 million with SEC-registered hybrid token launch

Crypto exchange INX will launch its long-awaited initial public offering (IPO) on 24 August. The Gibraltar-based exchange aims to sell 130 million tokens at $0.90 netting up to $111 million after expenses according to its latest filing with the SEC.

This will be the first security token offering (STO) that is registered with the SEC, allowing everyday investors to legally participate in it.

The INX tokens will be a hybrid solution of both utility and security tokens, in which holders can use the tokens to pay for trading fees on the platform, while doubling as company shares. The proceeds of the sale will be used to build INX’s regulated exchange INX Trading Solutions in addition to providing a $62 million cash fund for contingencies, such as data breaches, trading execution errors or counterparty defaults.

According to the filing, the co-founder and President Shy Datika already holds 9.4 million INX tokens (7.2% of total supply) while the CEO of A-Labs Doren Cohen (the company brokering the IPO) holds 4.55 million tokens (3.5% of total supply). Nine of the company’s 10 advisors will collectively receive just shy of 2 million tokens for $0.01 per token.

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