INX Digital (NEO: INXD)(OTC: INXDF) Share Price Soars
INX Digital is a blockchain technology disruptor that has been quietly trading on Canada's NEO exchange as well as the US OTC market since an IPO in Q1 2022. Share price for both tickers tracked a marked downtrend over much of its first 18 months as a publicly traded company, due in large part to crypto volatility, a dry up in VC funding for the blockchain tech landscape, and a series of scandals that rocked faith in the broader DeFi ecosystem. It seems that investors are only beginning to understand now that INX holds the keys to the future of a regulated, transparent, and secure blockchain industry.
Things began to turn around for INX Digital last month when its announced a strategic collaboration and investment with Republic, a financial services provider based in NY. Republic and INX have struck a deal where Republic will invest US$5.25 million in INX at a valuation of around US$50 million, granting Republic approximately 9.5% ownership. The collaboration aims to democratize finance and expand tokenization infrastructure, enabling tokenized asset services and integrating INX's trading solutions into Republic's ecosystem. The partnership seeks to redefine capital raising and empower global investors. Furthermore, a non-binding term sheet outlines Republic's potential acquisition of 100% of INX common equity, valuing it at up to US$120 million.
Beyond providing INX with an fresh infusion of cash and backing from a globally recognized financial provider, this deal points to a bright future for INX. Given the inglorious collapse of FTX and mounting legal/regulatory hurdles facing Binance and Coinbase's operations in key jurisdictions such as the US, crypto investors, enthusiasts, and stakeholders have increasingly acknowledged that governmental regulation is key for a flourishing DeFi economy. INX directly responds to this gap by serving as the first company to conduct a tokenized public offering under SEC approval as far back as 2021. Now, they represent the gold standard of an SEC-recognized provider for token offerings and licensing. This type of technology that bears a US government stamp of approval represents a major asset for mainstream FSIB providers like Republic that are seeking ways to legally penetrate the blockchain space.
In response to the Republic strategic investment and collaboration, INX share price has jumped triple digits over the course of the last month for both INXD and INXDF. The NEO ticker has jumped ~160% since market close before the announcement, whereas INXDF is up ~165%. Notwithstanding a broader market rally, these two microcaps have left baseline indices in the dust, and testify to an influx of investor confidence in the company's long-term prospects. In my views, a $120M valuation for INX is just the beginning. Their value proposition could be a saving grace for embattled crypto exchanges like Binance and Coinbase, or a silver bullet for traditional FSIB giants trying to enter the blockchain space in a legally and regulated manner. This is not financial advice, but I for one will be following the chart and news flow on this disruptor over coming weeks.
Things began to turn around for INX Digital last month when its announced a strategic collaboration and investment with Republic, a financial services provider based in NY. Republic and INX have struck a deal where Republic will invest US$5.25 million in INX at a valuation of around US$50 million, granting Republic approximately 9.5% ownership. The collaboration aims to democratize finance and expand tokenization infrastructure, enabling tokenized asset services and integrating INX's trading solutions into Republic's ecosystem. The partnership seeks to redefine capital raising and empower global investors. Furthermore, a non-binding term sheet outlines Republic's potential acquisition of 100% of INX common equity, valuing it at up to US$120 million.
Beyond providing INX with an fresh infusion of cash and backing from a globally recognized financial provider, this deal points to a bright future for INX. Given the inglorious collapse of FTX and mounting legal/regulatory hurdles facing Binance and Coinbase's operations in key jurisdictions such as the US, crypto investors, enthusiasts, and stakeholders have increasingly acknowledged that governmental regulation is key for a flourishing DeFi economy. INX directly responds to this gap by serving as the first company to conduct a tokenized public offering under SEC approval as far back as 2021. Now, they represent the gold standard of an SEC-recognized provider for token offerings and licensing. This type of technology that bears a US government stamp of approval represents a major asset for mainstream FSIB providers like Republic that are seeking ways to legally penetrate the blockchain space.
In response to the Republic strategic investment and collaboration, INX share price has jumped triple digits over the course of the last month for both INXD and INXDF. The NEO ticker has jumped ~160% since market close before the announcement, whereas INXDF is up ~165%. Notwithstanding a broader market rally, these two microcaps have left baseline indices in the dust, and testify to an influx of investor confidence in the company's long-term prospects. In my views, a $120M valuation for INX is just the beginning. Their value proposition could be a saving grace for embattled crypto exchanges like Binance and Coinbase, or a silver bullet for traditional FSIB giants trying to enter the blockchain space in a legally and regulated manner. This is not financial advice, but I for one will be following the chart and news flow on this disruptor over coming weeks.