In our previous courses, we explored the concepts of private markets, tokenization, and security tokens. However, the crucial question remains: where can we access these investment opportunities? IX Swap has the answer.

IX Swap offers a wide range of private market investment opportunities through security tokens and tokenization. These opportunities include investments in real estate, startups, high-growth companies, and other unique offerings. In this course, we will introduce our various product offerings where you will be able to invest in these opportunities in a legally compliant manner and with a solution to the problem of illiquidity..

We will discuss IX Swap's background and provide insight into our product offerings, potential investments on our platform, and how we stand apart from other market players, including insights into our blockchain and decentralized finance (DeFi) solutions, such as automated market makers (AMMs), liquidity pools, and decentralized trading.

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Backstory

The traditional business lifecycle involves seeking investments from venture capitalists and angel investors in exchange for equity in the company. This typically includes several rounds of fundraising such as seed, and series A, B, and C. After achieving growth, the company may conduct an initial public offering (IPO) and get publicly listed on an exchange. However, this traditional business lifecycle is not very optimal, involving a lot of work, cost, time, and paperwork.

To improve this lifecycle, various crowdfunding platforms were introduced. These platforms allowed for greater investor participation but were still operating on traditional paper-based infrastructures. 

Then there were Initial Coin Offerings (ICOs) and Initial DEX Offerings (IDOs) in the crypto space, but these were met with a wave of crackdowns for not being conducted in a legally compliant manner.

In 2018, security token offerings came into the fold to allow companies to leverage the use of blockchain technology as a different alternative for assets to become publicly traded. However, security token exchanges faced the challenge of illiquidity. As the total security token industry still remained relatively small at the time,  no market makers were available yet. This made it very difficult to buy and sell security tokens.

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IX Swap Revolutionizes Financial Asset Lifecycle with Security Tokens 

IX Swap was created to revolutionize the security token and tokenization industry, to improve the lifecycle of every financial asset, from top to bottom. Through our IXS Launchpad, companies can issue security tokens and be on-chain with investors from day one. This is complemented by our Security Token Exchange which allows companies to list IXS Launchpad-issued security tokens on a secondary exchange. IX Swap is both regulatory compliant and offers a solution to the problem of illiquidity, creating a single ecosystem for every company to seamlessly issue and trade security tokens.

On the IXS Launchpad, companies can raise funds by issuing security tokens which are then deposited into investors’ digital wallets. If the company wants those security tokens to then be listed on a secondary exchange, they can also do so on IX Swap. Unlike what we typically see in traditional finance (TradFi), a private company does not need to go public before the avenue of secondary trading becomes available. By harnessing the technology of security tokens, life is made easier for both investors and companies, since less cost, work, and paperwork is required for security tokens to be created and traded on the blockchain.

This ultimately means that we have effectively opened the gates for any financial asset, irrespective of its size or at stage it may sit in the business lifecycle, to allow investment participation from practically anyone, through our IXS Launchpad and secondary exchange.

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IXS Launchpad

The IXS Launchpad represents a significant shift in the way that investors can access emerging businesses and startups. It is a next-generation fundraising platform that offers exclusive access to tokenized investment deals. Through the IXS Launchpad, investors can take advantage of opportunities to own a stake in emerging businesses across a range of industries, including finance, blockchain, energy, technology, real estate, healthcare, gaming, and many others.

At its core, the IXS Launchpad harnesses the technology of security tokens to enable seamless transactions on the blockchain. Every offering on the IXS Launchpad is represented through security tokens, which, in turn, represent an investor’s stake in the company.

‍Benefits to issuers:

1. Access to capital: Fundraising with security tokens provides issuers with an alternative source of capital that they can use to fund their business operations.
2. Regulatory compliance: We have the capability to facilitate the issuance and trading of security tokens in a regulatory compliant manner, which provides issuers with that much needed certainty.
3. Lower costs: Fundraising with security tokens can be less expensive than traditional fundraising methods, as it can eliminate the need for costly intermediaries like investment banks and underwriters.
4. Quicker funding: Fundraising on the IXS Launchpad allowing issuers to raise and receive funding quicker than traditional fundraising methods.
5. Continuity of ecosystem: Issuers can issue and list security tokens within a single platform, which allows for consistency and a more streamlined process for issuers.

Benefits to investors:

1. Access to exclusive investment opportunities: The IXS Launchpad provides investors with access to a diverse range of private market investment opportunities that are not available on traditional investment platforms.
2. Low investment minimums: Investors can invest in startups and emerging businesses with relatively small amounts, making it more accessible to a wider range of investors.
3. Increased liquidity: The use of security tokens and blockchain technology allows for smaller minimum investment sizes through fractionalized investments, thereby increasing liquidity for investors. 
4. Regulatory compliance: Like for issuers, our regulatory compliant operations would likewise provide investors with the comfort of better legal certainty.
5. Transparency: Blockchain technology provides a high degree of transparency and accountability, which can help to increase investor confidence and reduce the risk of fraud.

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The technology solution behind it:

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‍The security token exchange

A security token exchange is a platform where investors can buy and sell security tokens through the secondary market. IX Swap operates its own Security Token Exchange which is not only available to companies that have used the IXS Launchpad, but also to any other security tokens that were issued through other platforms.

Examples of assets that can be traded on our exchange include:

1. Private equity: Dive into the world of private equity and gain access to investment opportunities in non-listed companies, including early-stage startups and high-growth businesses.
2. Real estate: Access high-potential and large-scale projects with tokenization. Invest in exclusive real estate opportunities with as little as $1 through fractional ownership. Explore a diverse range of options, including private equity real estate, real estate debt funds, and more.
3. Private debt: Explore the potential returns of investing in private debt by lending to private companies and earning interest on your investment. Dive into a variety of options including high-yield debt, direct lending, senior debt, mezzanine debt, and more.
4. Natural resources: Explore opportunities to invest in the companies that are at the forefront of the production of natural resources, such as oil and gas, metals and minerals, timber, water, and renewable energy. 
5. Infrastructure: Join the movement of forward-thinking investors and invest in the backbone of society: infrastructure, from utility providers, transportation networks, social services, and energy production, to airports and more.
6. Other tangible and intangible assets: Unlock the potential to trade in assets that were previously inaccessible or challenging to access, including expensive machinery and equipment, vehicles, and intellectual property rights, among others.

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What sets our Security Token Exchange apart is our liquidity solution, which ensures sufficient liquidity to enable the smooth trading of security tokens.

‍IX Swap’s liquidity solution

In traditional centralized exchanges, market makers are high-volume investors that provide liquidity by quoting buy and sell orders simultaneously. This ensures that there is always a buyer or seller available even where there are no actual buyers or sellers. However, market makers are susceptible to conflicts of interest, market manipulation, and latency in price discovery.

In an AMM model, the order book is replaced with liquidity pools, where market liquidity is provided by users who contribute their own tokens to these pools as liquidity providers, and the price is determined by a mathematical formula fixed by a smart contract, with no human intermediaries involved.

Uniswap, a decentralized exchange for crypto assets, introduced its AMM protocol and liquidity pools in 2018. The result was a surge in the total monthly decentralized exchange volume from $39.5 million to $43.5 billion in just one year (a growth of 110,100%). With the AMM protocol, Uniswap removed the need for market makers and used smart contracts to automate the price matching and price discovery process.

To address the issue of limited liquidity on security token exchanges, IX Swap has introduced a groundbreaking solution: the world's first decentralized security token exchange featuring AMMs and liquidity pools. This innovative approach enables investors to easily buy and sell security tokens, providing a more efficient and seamless trading experience.

AMMs also creates another investment opportunity for investors: liquidity mining. In liquidity mining, participants provide the pool with liquidity by contributing token pairs. In return, the liquidity miner is rewarded with fees for providing liquidity. This is another way for investors to earn returns on their assets instead of merely allowing them to sit idle.

Through our AMM protocol and liquidity pools, IX Swap has brought much-needed liquidity to the security token industry. We are continuously working towards our mission to democratize access to private market investments and address the illiquidity challenges facing the tokenization industry. 

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IX Swap’s Offers Turnkey Liquidity Solution for Other Security Token Platforms

Through our SaaS (software-as-a-service) Liquidity Solution, our aim is to help other security token platforms and exchanges overcome their liquidity issues with one solution. Our innovative SaaS Liquidity Solution provides liquidity pools and automated market maker functions for all security tokens, unlocking liquidity for those that were previously considered illiquid. 

IX Swap's SaaS Liquidity Solution is designed to be regulatory compliant with licenced broker-dealer services, enabling platforms and exchanges to expand on the features of their security tokens by allowing for liquidity mining and creating new investment opportunities for their users. Our SaaS Liquidity Solution supports interchain operability, making it easy to conduct seamless transactions across multiple blockchains. The service also comes with support services from the experienced IX Swap team, offering valuable insights into the ever-evolving world of security tokens.

Our ultimate goal is to democratize access to investments and open new opportunities to investors, and our SaaS Liquidity Solution provides a significant leg up  in the effort to bridge the gap between centralized finance (CeFi) and DeFi. With the possibility of more tokenization projects and real-world assets being brought on-chain, we are excited to see what the future holds for the security token industry.

IX Swap's innovation doesn't end here! We're constantly striving to expand our offerings, including our Fractionalized-NFTs platform and more. Discover the full range of products on our website!

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End notes

Eager to dive deeper into IX Swap? We invite you to explore our Academy and join our vibrant Telegram community, where you can connect with others who share your passion for IX Swap.

Ready to level up your involvement? Consider applying to become an IX Swap ambassador and play a more significant role in our thriving ecosystem!

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