Cryptocurrencies

INX Crypto Exchange Has Started Distributing Tokens From Its Blockchain-Based IPO

(Markus Spiske/Unsplash)

Roughly 210 of the more than 500 registered and whitelisted investors in INX’s initial public offering (IPO) on Ethereum have put money into the sale as of Friday, Sept. 18, three days after the first distribution transaction took place.

The cryptocurrency and security token exchange’s blockchain IPO is the first of its kind and gives observers and issuers a ground-level view of what’s going on through the Etherscan block explorer. 

The public can see roughly the number of investors receiving INX tokens after putting money into the sale by watching the number of holders on the token tracker. (Some of these are internal operational transactions, however, such as when Tokensoft loads the distribution smart contract.)

Related: Bitcoin and Ether in Biggest Slump Since Sept. 3 as Stock Markets Sink

Traditionally, to get information on who beneficially owns an interest in shares held at central securities depositories like the Depository Trust Company, investors or issuers would have to go to the investment banks or broker-dealers who coordinated the sale. 

“I love that investors can purchase and get the tokens directly from the issuer the same day,” said Mason Borda, CEO of Tokensoft.  “Over time, as our technology and processes mature, this will all occur in real time.”

Read more: How to Watch INX’s IPO in Real Time on the Ethereum Blockchain

Per INX’s IPO prospectus, the company was required by U.S. regulators to first raise $7.5 million before being able to distribute tokens or raise funds in the form of crypto.

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