The INX Digital Company, Inc. Trade Ideas — OTC:INXDF

INX Digital Posts Gains Amidst Summer Slump in Equities, Crypto The summer of 2023 will not be remembered as one that was kind to equity traders. Over the course of the last month alone, all major stock indices in the US like AMEX:SPY NASDAQ:QQQ and DJ:DJI closed in the red as investor sentiment wavered in the face sky-high interest rates, growing consumer debt, an economic slowdown in China, and overall low summertime liquidity. These macro factor also impacted crypto markets, with BITSTAMP:BTCUSD experiencing a 12% drop on August 17th, dragging down major cryptocurrencies with it like BITSTAMP:XRPUSD and $BINANCE:BNBUSD. Triggers cited as responsible for this crypto slump include low trade volumes leading to heightened volatility, alongside China's economic ills and a potential sell-off by SpaceX to raise capital. Despite these summer doldrums, INX Digital NEO:INXD share price rose by +15% over the past month and >100% over the past 3 months. These massive gains buck the trend of bearish sentiment currently afflicting tech and crypto indices, and raises the central question: what is motivating this impressive run? The first and most obvious catalyst is the strategic investment Republic Group closed with INX in mid-August. The investment specified a $5.25M stake in INX for 9.5% equity in the company's pre-money valuation. Given Republic Group's status as an established FSIB player based out of NYC, this deal testifies to the increasing demand for INX's regulatory approach to tokenization and the exchange of digital assets that has arisen as a result of ever more vocal calls for federal regulation of the crypto space. Amidst the SEC-Ripple litigation and the announcement of a crypto-taxation schema, investors are girding themselves what looks like the imminent roll-out of more comprehensive regulation. This eventuality clearly works to INX's advantage given its status as a first-mover in the regulated blockchain space, and is attracting more attention from the world of traditional finance. Another catalyst behind INXD's recent gains are its favorable Q2 '23 financials, highlights of which included a sharp increase in new customer registrations and size of funds held, as well as a 161% increase in revenue relative to Q2 '22. With new customers and funds flowing in and a steadily improving bottom line, INX's financial position indicates the company is on solid footing that will support forward growth. he past few months have proven a decisive period for INX. Share price broke-out from a longtime plateau to the 0.35 -0.40 range on the heels of a successfully closed strategic investment. Fundamentals remain strong, and looking forward to Q4 it looks like macro-global market forces are accelerating the advent of a regulated crypto space, which may open the door to additional and even bigger strategic investments or M&A activity around INX's fully compliant approach.

INX Digital Outpaces Sluggish Tech, Crypto Indices in August The summer of 2023 will not be remembered as one that was kind to equity traders. Over the course of the last month alone, all major stock indices in the US like AMEX:SPY NASDAQ:QQQ and DJ:DJI closed in the red as investor sentiment wavered in the face sky-high interest rates, growing consumer debt, an economic slowdown in China, and overall low summertime liquidity. These macro factor also impacted crypto markets, with BITSTAMP:BTCUSD experiencing a 12% drop on August 17th, dragging down major cryptocurrencies with it like BITSTAMP:XRPUSD and $BINANCE:BNBUSD. Triggers cited as responsible for this crypto slump include low trade volumes leading to heightened volatility, alongside China's economic ills and a potential sell-off by SpaceX to raise capital. Despite these summer doldrums, INX Digital NEO:INXD share price rose by +15% over the past month and >100% over the past 3 months. These massive gains buck the trend of bearish sentiment currently afflicting tech and crypto indices, and raises the central question: what is motivating this impressive run? The first and most obvious catalyst is the strategic investment Republic Group closed with INX in mid-August. The investment specified a $5.25M stake in INX for 9.5% equity in the company's pre-money valuation. Given Republic Group's status as an established FSIB player based out of NYC, this deal testifies to the increasing demand for INX's regulatory approach to tokenization and the exchange of digital assets that has arisen as a result of ever more vocal calls for federal regulation of the crypto space. Amidst the SEC-Ripple litigation and the announcement of a crypto-taxation schema, investors are girding themselves what looks like the imminent roll-out of more comprehensive regulation. This eventuality clearly works to INX's advantage given its status as a first-mover in the regulated blockchain space, and is attracting more attention from the world of traditional finance. Another catalyst behind INXD's recent gains are its favorable Q2 '23 financials, highlights of which included a sharp increase in new customer registrations and size of funds held, as well as a 161% increase in revenue relative to Q2 '22. With new customers and funds flowing in and a steadily improving bottom line, INX's financial position indicates the company is on solid footing that will support forward growth. T he past few months have proven a decisive period for INX. Share price broke-out from a longtime plateau to the 0.35 -0.40 range on the heels of a successfully closed strategic investment. Fundamentals remain strong, and looking forward to Q4 it looks like macro-global market forces are accelerating the advent of a regulated crypto space, which may open the door to additional and even bigger strategic investments or M&A activity around INX's fully compliant approach.

INXD's Bullish Momentum Reversal and Technical Overview Given its double-digit gains yesterday, now is a good time to discuss the rising star of INX Digital ( NEO:INXD ) ( OTC:INXDF ), a pioneering company that seeks to reshape capital markets through the integration of regulatory-compliant blockchain technology. INX Digital’s primary objective is to establish a regulated trading platform catering to digital securities, cryptocurrencies, and primary capital offerings. This innovative approach combines the expertise of traditional markets with recent breakthroughs in blockchain and fintech. Guided by a proficient team of individuals well-versed in business, finance, and crypto, INX aspires to redefine the capital markets realm. At the close of yesterday’s trading, both of INX's tickers demonstrated substantial intraday gains; INXD exhibited an impressive uptick of 11.11%, while INXDF showcased a notable surge of 10.54%. These gains offer a promising glimpse into the company's performance potential moving forward. Turning our attention to its technical profile, INXD's trade volume yesterday was eye-catching, surpassing 700K in contrast to its 3mo average of 142.42K. This >5X surge signifies heightened market interest in the company’s regulated approach to digital assets. INXD's MACD also displayed a positive histogram reversal and x-axis intercept of the signal line, a pattern that often indicates an impending bullish trend. In parallel to the MACD insights, the PVT exhibited a positive reversal. This observation further bolsters the case for impending bullish price movement over coming days and weeks. The alignment of positive trends in trading volume, MACD, and PVT collectively presents a compelling case for the start of a bullish trend in the immediate future. This outlook is confirmed by ‘buy’ or ‘strong buy’ technical ratings for a 1-month horizon. As I continue to monitor INX Digital's trajectory, all indications point towards the potential for sustained upward momentum. If you were to ask me infer what caused yesterday's gains given the absence of a public catalyst, it seems that an institutional player may have stepped into the mix. There are two things we can derive from Republic Group & INX’s recent strategic collab. Firstly, given renewed focus on crypto legislation in the US, it could be that institutional investors keenly discern the potential inherent in INX's fully compliant platform. Secondly, insider share purchases necessitate pre-announcements, thereby ruling out the possibility of this coming from the inside. The motive behind potential institutional involvement would be clear; recent news has highlighted the U.S. government's roll-out of a cryptocurrency taxation framework, which suggests that the Fed is considering broader steps to begin regulating the crypto space. This development could have acted as the catalyst that is drawing prominent institutional investor to consider regulatory-compliant exchanges more seriously, explaining the nearly fivefold surge in yesterday's trading volume. This spike in volume could also signal the beginning of a bullish trend, one similar to what happened following Republic's strategic investment back in June. It will be interesting to see how INXD price action behaves over the coming days, but I’m bullish on this play for the time being.

INX Digital (INXD) Posts Massive Gains Amidst Crypto Crackdown INX Digital (NEO: INXD)(OTC: INXDF) is a blockchain technology provider that is a disruptor in the field of fully regulation-compliant crypto and token trading and listing solutions. The company launched its INX security token in 2017 in a process that was groundbreaking in its close supervision by the SEC. In the years since, INX went public on stock exchanges so equity investors could likewise benefit from its revolutionary approach to the blockchain industry. Furthermore, numerous companies have performed primary token offerings on their in-house platform in what represents the future of capital raising in the world of web 3.0. Over the course of recent months, INX has seen an injection of momentum that can be pinpointed to a strategic investment by Republic Group, a NYC-based FSIB provider that is working to penetrate the booming blockchain market. The deal was for a $5.25M investment in INX, representing a 9.5% stake in the company. Furthermore, the two have entered into a non-binding prospective term sheet that raises the prospect of an acquisition for a valuation of up to $120M. In response to the strategic investment, INXD and INXDF share price skyrocketed, with both posting triple digit gains YTD. Recent Q2 financials reported by INX to Canadian regulatory authorities furthermore testify to the company's strong financial position and fast-growing user base as well as net amount of funds under management. Revenue in Q2 increased 16% YoY, whereas new customer registration rose by 50% compared to Q1 '23. Looking forward, INX seems aggressively positioned for forward growth in the midst of ongoing M&A negotiations. The term sheet with Republic Group is a promising start, but the robust performance of share price testifies to the fact that investors may be expecting an even bigger deal from major players in the crypto market like Coinbase (COIN), Binance (BNB), or Ripple (XRP). As major exchanges are increasingly embattled by US litigation and increased regulatory scrutiny, the INX solution opens a path for a legal, transparent, and secure blockchain space.

INXD Continues Climbs Amidst PYUSD Launch, Banking Losses When markets opened on Tuesday morning, sentiment was soured by Moody's placing the credit ratings of six large US banks under review. This news made investors anxious about the overall health of the banking industry, and as a result, stock prices went down, especially for Wells Fargo (NYSE: WFC), JPMorgan Chase (NYSE: JPM), and Bank of America (NYSE: BAC), which saw drops of 1.3%, 0.6%, and 1.9% respectively. This drop in both banking stocks as well as US market indices made investors take a closer look at what was going on in the crypto market. With the ongoing battle between regulatory bodies like the SEC vs major exchanges like Coinbase and Binance, investors are thinking twice about the inherent value of a regulated approach to DeFi. That’s when some movement was detected on INX stocks, with NEO’s INXD surging by 8.8% and its OTC ticker INXDF skyrocketing by an impressive 32.88% In my opinion cryptocurrencies are often considered a hedge against inflation, safeguarding against the erosion of consumer and investor purchasing power during periods of rising interest rates. Amid global economic uncertainty alongside the ongoing fight in US courts regarding regulatory compliance for leading crypto exchanges, fully regulated services are now starting to be demanded within the industry. This alone could be one of the catalysts that has contributed to INX’s ongoing gains over recent weeks. In addition to the injection of some bearish sentiment into the market due to Moody’s announcement, PayPal's introduction of the stablecoin PYUSD has reverberated throughout the cryptocurrency landscape. Notably, this casts a positive light on the prospects for INX. The launch of a stablecoin by a mainstream FSIB company like PayPal underlines the increasing emphasis on legal compliance and regulatory adherence within the crypto market. So on one hand, Paypal launching PYUSD and the regulation battle play directly into the strengths of INX, positioning it as a frontrunner in offering regulated and compliant crypto services. By already adhering to these regulatory standards, INX stands to benefit from the growing demand for trustworthy and legally compliant crypto platforms, elevating its appeal as a secure avenue for both retail and institutional investors looking to participate in the evolving crypto landscape. In addition, last week Zacks SCR published an analyst report for INXDF in which they wrote: “we want to reiterate that we believe this market that INX has a developed, regulated platform for, is on the cusp of exploding” before saying that INX’s sp has >100% upside over a 12-month horizon. This aggressive PT takes into consideration the fact that Republic Group invested $5.25 million in INX at an approximate $50 million pre-money valuation, with talk of a potential 100% acquisition with a $120 valuation ceiling on the table. In conclusion, it is clear that a big sector of the crypto market is being attracted to a new way of doing things, a way in which regulatory compliance play a role both in protecting investors and making sure that no illegal transactions are being made under the SEC’s nose while their hands are tied on their backs. This doesn’t mean that INX’s sp will continue to rise indefinitely, but the several catalysts that happened in the last couple of months have for sure impacted the value of both their tickers and they are setting an uptrend that in my opinion, is just getting started.

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.

Is the future of Crypto Regulation? Macro take on INX 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. NEO:INXD

The INX Digital Company, Inc.

INXDF trade ideas