Is the future of Crypto Regulation? Macro take on INX
Updated
The last two weeks (and some may argue month) in global markets have been highly volatile (at best). In such a climate, especially considering the US Fed’s inclination to increase interest rates, its slightly surprising that there are so many IPOs lined up in the US & Canada. In the midst of a red NASDAQ, one company dared going public on Canada’s NEO exchange, and I thought its worth a proper inspection (although I don't have a lot of investments on NEO).
So what's the gimmick? After properly reviewing the prospectus and the relevant news I have some answers for you. INX is positioning itself as a NASDAQ-esque exchange yet designed to be regulatory compliant for the trade and monetization of digital assets built on blockchain. Some of you were waiting for the word crypto to appear in the last sentence, but the world of digital assets is far larger than cryptocurrencies (which, I might add, is a component part of the service offered by INX). How are they going to achieve this goal according to the plan they lay out in their prospectus?
First and foremost, until now there has not been a single legal, SEC/FINRA compliant trading platform or exchange for digital assets. From day one, INX has worked with government authorities in order to produce this platform which has both this double FINRA & SEC approval. What is the advantage of the ‘legality’ some may ask? Well, the answer is two-pronged. First, digital assets mining and trading is proliferating, and the negative consequences of this vast, unregulated space has not been lost on world governments. Today we are seeing quite vividly through the UK versus Binance affair that much of our popular platforms for crypto trading are not going to last for long. The second motivation behind the premium on legality is that digital assets trading, as long as not regulated, is wide open for exploitation from scamming and fraudulent behavior. This element of trading drives many potential investors away from the blockchain market, which keeps the market from consolidation. Obviously, INX is not the only company to realize the potential of this market niche, but it is for sure the a prominent first-mover. As we all know too well, a early entrants holds an invaluable advantage over later competitors, especially so for the world of capital markets.
INX’s second method for realizing their “NASDAQ 2.0” paradigm is to offer a variety of digital assets previously inaccessible to retailer investors. The assets I appreciate the most are security tokens. Security tokens, for those unfamiliar with the lingo, is a share in a given asset that comes with terms, that does not obey an exact monetary value, and can be thought of as the blockchain- based version of seed funding. Generally speaking tetail investors largely can't engage in this sort of very lucrative investment, from which investing houses derive mega-profits. Opening this market, if it will work as they hope - seems to be the greatest innovation of INX.
Finally looking at the chart there is not a lot of data play with. However I will mention that considering the state of the market, trading at 1.15$ seems promising. Nevertheless, a closer look is required for a longer timeframe, especially in terms of its MA and volume profile.
Though 2022 started on a bearish note in the market, INX’s IPO shows there is still room for disruptive innovators.
INXD
So what's the gimmick? After properly reviewing the prospectus and the relevant news I have some answers for you. INX is positioning itself as a NASDAQ-esque exchange yet designed to be regulatory compliant for the trade and monetization of digital assets built on blockchain. Some of you were waiting for the word crypto to appear in the last sentence, but the world of digital assets is far larger than cryptocurrencies (which, I might add, is a component part of the service offered by INX). How are they going to achieve this goal according to the plan they lay out in their prospectus?
First and foremost, until now there has not been a single legal, SEC/FINRA compliant trading platform or exchange for digital assets. From day one, INX has worked with government authorities in order to produce this platform which has both this double FINRA & SEC approval. What is the advantage of the ‘legality’ some may ask? Well, the answer is two-pronged. First, digital assets mining and trading is proliferating, and the negative consequences of this vast, unregulated space has not been lost on world governments. Today we are seeing quite vividly through the UK versus Binance affair that much of our popular platforms for crypto trading are not going to last for long. The second motivation behind the premium on legality is that digital assets trading, as long as not regulated, is wide open for exploitation from scamming and fraudulent behavior. This element of trading drives many potential investors away from the blockchain market, which keeps the market from consolidation. Obviously, INX is not the only company to realize the potential of this market niche, but it is for sure the a prominent first-mover. As we all know too well, a early entrants holds an invaluable advantage over later competitors, especially so for the world of capital markets.
INX’s second method for realizing their “NASDAQ 2.0” paradigm is to offer a variety of digital assets previously inaccessible to retailer investors. The assets I appreciate the most are security tokens. Security tokens, for those unfamiliar with the lingo, is a share in a given asset that comes with terms, that does not obey an exact monetary value, and can be thought of as the blockchain- based version of seed funding. Generally speaking tetail investors largely can't engage in this sort of very lucrative investment, from which investing houses derive mega-profits. Opening this market, if it will work as they hope - seems to be the greatest innovation of INX.
Finally looking at the chart there is not a lot of data play with. However I will mention that considering the state of the market, trading at 1.15$ seems promising. Nevertheless, a closer look is required for a longer timeframe, especially in terms of its MA and volume profile.
Though 2022 started on a bearish note in the market, INX’s IPO shows there is still room for disruptive innovators.
INXDComment
disclaimer: this is not financial advice P.S - take a deeper look at the chart and zoom in, its listed for merely four days.
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