INDX investors, who have been waiting for their STO allocation since June last year, faced further delays this week due to a last minute “contractual issue” that delayed the token issuance process once more. Long suffering supporters have seen the project beset by numerous delays both before and since the STO, many to do with the regulatory issues that persist in this new paradigm, and so to stumble once more at this late stage is galling for all concerned.
“Contractual Issue” to Blame
STO investors were expecting to receive an email on Monday which would take them through the final stages of the process before token distribution, but by 6pm no such email had arrived.
A message to the Telegram group from COO Gareth Ward explained that the reason for the delay was because “a contractual issue was noticed that would have incurred an expense to INDX approximately 30 times the price we expected.” Fortunately the issue has been resolved with an “interim solution”, meaning that they final step in the prolonged process should begin later this week, although by this stage there are no guarantees of anything!
INDX Paying the Price of Being First Through the Door
In many ways, INDX is paying the price for being a pioneer in the space and trying to deal with regulations that, in many ways, have not been designed with this sort of a project in mind. INDX was already being worked on before the term STO had even been coined, which, as CEO Jonathan de Cartaret told us in an interview last year, has raised several problems:
There wasn’t a regulator that would allow us to tokenize the fund or invest in the alternative asset class of crypto, and there was no issuance technology to keep a dynamic register of the cap table or ensure only qualified investors participate. There weren’t even any regulated crypto security exchanges.
INDX Hoping to Capitalize on Masternode Technology
Investors will no doubt be pleased that the compliance saga is coming to an end and they can finally get on with the purpose for which INDX was designed – to make investors money. INDX offers passive income through operating an index of masternodes, with an algorithm choosing and buying up the most profitable masternodes, selling the proceeds, and handing out quarterly dividends to token holders.