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INXDF: INXDF is Changing the Digital Financial World


By Brad Sorensen, CFA



INX Digital (OTCQB:INXDF) is a company that provides a regulated platform where verified customers can trade cryptocurrencies and security tokens on a secure and around the clock basis. The security token market appears poised to explode and INX is the only company to this point to introduce an SEC-approved security token. We believe this gives them an enormous advantage in an industry with exponential growth potential.

INX offers a single trading platform for SEC regulated security tokens and cryptocurrencies, branded under INX.One, combining traditional markets expertise with a novel fintech approach. Let me pause right here and point out that the last sentence is not just a throwaway company description. INX provides a regulated trading platform for digital securities and cryptocurrencies—that that sounds like something investors could use right about now. This report is not going to detail the failings of other companies that claim to provide trading services to the crypto universe but in the past six months we’ve seen a massive fraud case, one of the largest platforms fined by a regulator, a bankruptcy or two, and it goes on. What’s the answer for the confidence problem plaguing the crypto trading industry right now—INX. This report will detail all of the policies, procedures and structures that make this firm different, but beyond that, we are excited about the company because of the way that INX is shaping the blockchain industry through its willingness to work in a regulated environment with oversight from regulators such as the SEC and FINRA.

Those regulatory agencies have been an anathema to the crypto world that was founded on freedom from such restraints and oversight these agencies typically provide. But as the industry has matured, investors have realized that some guardrails are not only nice to have but needed to ensure a fair market that in which investors can have confidence—and that’s what we believe INX provides. Investment in INX is not an investment in cryptocurrency, investing in INX is an investment in a fintech company that has the necessary technology, expertise and licenses to offer primary and secondary market of security tokens and digital assets to investors in the U.S. and globally under the umbrella of regulatory oversight and protections on a single trading platform. Therefore, we aren’t going to opine on the viability or worth of any one cryptocurrency and don’t claim to have any expertise on that subject. But we can see the growth of the industry at large and the ability to invest in an SEC registered company that has regulated operations in an industry that is projected by Allied Market Research to reach $4.94 billion by 2030 is one that we’re interested in.

But that’s only one side of the INX business…and not the one that we are the most excited about—and is forecast by several research firms cited by the company to grow by 50x to $16 trillion by 2030. That side of the INX story is Security Tokenization. Details of the tokenization operation and trading platform follow but when the chairman of the largest asset manager in the world, Larry Fink of Blackrock, says that “The next generation of securities will be tokenization” we believe investors should take notice. INX is the world’s first company to debut and successfully complete an SEC-registered IPO of a blockchain security token (the INX Token). The public offering of the INX Token was registered under the United States Securities Act of 1933 and, in such registration, the INX Token is deemed to be an “equity security” under relevant SEC rules and regulations. We’ll talk more about the INX token, but the point here is that the company has the experience needed in this burgeoning industry to help companies to bring tokens to market and provide a place for them to be traded with confidence.

The methodical and responsible way that INX has built their company in an industry that has often been described as the Wild, Wild, West is attention-grabbing after the industry has received attention for all the wrong reasons and is something that we believe investors should and will pay attention to.

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