IX Swap — DeFi Raccoons AMA
Date: 29th July 2021
Host: Sly Cooper
Hello all! Have a look at our AMA we had DeFi Raccoons, in their Telegram group.
Sly Cooper | DeFi Raccoons: Let’s kick it off with some introductory questions. Could you start by sharing some information about yourselves and your backgrounds?
AO: Hello! My name is Aaron and I am also one of the Co-founders of IX Swap. My background has primarily been in traditional finance and banking. I grew up in Melbourne but have spent most of my career in Singapore doing investment advisory across multiple large private banks. During my time in the banking industry I was extremely fascinated by the crypto industry and started trading and arbitraging crypto markets back in 2017.
AO: The crypto markets were extremely volatile but offered a plethora of opportunities and offered an open architecture which was the complete opposite to what I was experiencing at the bank. After years of being fed up and frustrated with traditional banking practices, I left the bank and pursued my interest in crypto trading opportunities for a few years before joining InvestaX which is a leading platform for global security token projects. Security tokens were a natural evolution for me given my experience in traditional finance and love for crypto. I will be leading IX Swap in terms of business strategy and operations going forward.
Julian Kwan: Hi everyone! My name is Julian and I am one of the Co-founders of IX Swap. I was born and raised in Sydney Australia, and have spent my life starting companies (7 companies over the last 20 years based in Beijing, Shanghai and Singapore) including social media/technology, real estate investment & development, proptech and blockchain. I have spent my life starting businesses in new markets and new industries and now focused on building IX Swap as key infrastructure connecting DeFi and CeFi. This is an enormous opportunity to completely change how everyone can invest and access investments.
Julian Kwan: I am also co-founder and CEO of InvestaX, a licensed security token platform headquartered in Singapore and the first platform partner for IX Swap.I am super excited about IX Swap and the potential for the IXS token.
Sly Cooper | DeFi Raccoons: People being fed up from the traditional banking is surely one of the prioritized reasons why people are slowly migrating to (hopium), or at least vastly trying out DeFi. So you’re actually bridging this gap between the TradFi (or CeFi) and DeFi, right?
Could you please share some sort of an overview regarding IX Swap, and what you’re ultimately solving?
AO: Yes, that’s right. IX Swap is building the “Uniswap” of the Security Token (STO)/Tokenized Stock (TSO) industry, solving the key liquidity problem of the industry, which is caused by a lack of market makers and strict licensing requirements.
AO: We will be the FIRST platform to provide liquidity pools and automated market making functions for the security token (STO) & tokenized stock industry (TSO). IX Swap will also be the first DeFi platform to facilitate trading of security tokens through licensed custodians and security brokers, providing actual ownership and claim over these real world assets.
AO: In response to your question on how we are bridging the TradiFi/DeFi gap, IX Swap is taking real world assets that are considered securities from TradFi (CeFi) and allowing them to be traded in a DeFi way; Taking property, VC funds, private companies, livestock etc. and allowing them to be traded in a decentralized fashion like what we see in Uniswap.
Sly Cooper | DeFi Raccoons: First!! Always loving projects being in the frontline of the “transformation” or development. That’s definitely a gap that has been missing within DeFi so far.
To my understanding the overall market size for STO’s is currently around some trillions after all, right?
AO: yes, the current TAM of STO is similar to that of the private asset market.
Julian Kwan: 7.5T today and 15T by 2025–7.5T USD.
Sly Cooper | DeFi Raccoons: Crazy figures. Some decent market slice to be caught.
AO: Exactly, thats why we’re so excited!
Sly Cooper | DeFi Raccoons: Little drop in the ocean right now looking at the picture haha — Some decent room for growth indeed.
So what problems do you see within the more “traditional market” of STO’s and where could IX Swap’s technologies come into play there? Which of these problems would they solve?
Julian Kwan: the traditional market of STO has no market making solution , that is why volumes have been so low.
Julian Kwan: In the traditional markets today there is very little volume on the exchanges that offer STO’s because of lack of market makers and volume in general. Many of those that are already offering STO’s are slowly starting to shut down due to regulations as well. Both Binance and Uniswap are two examples of this.
Julian Kwan: By offering STO tradability on a DEX instead of a CEX we are able to solve the liquidity problem as anyone in the STO ecosystem will be able to provide their liquidity. Similarly by partnering with InvestaX, we solve the regulatory and licensing requirements, ensuring stability and liquidity.
Sly Cooper | DeFi Raccoons: Indeed two rather massive issues currently. Seems that you’ve things very well thought through.
Sly Cooper | DeFi Raccoons: Some key players in crypto (CEXes mostly) have had some issues with regulatory stuff recently as you might have noticed, and that’s pretty bad. Glad to see you’re doing it the right way since the beginning though. Will help in many things moving forward.
Julian Kwan: yes the team has been hard at work in the STO industry, solving this massive problem and getting the right licenses to ensure IXSwap is the leading platform and investors are protected.
Sly Cooper | DeFi Raccoons: Let’s move to discuss a bit about your token that’s rather a “backbone” for the platform if I’m not mistaken. Could you perhaps enlighten us a bit regarding its features and use cases within IX Swap’s ecosystem? Also, how do you intend to reward the early adopters of the ecosystem?
AO: Of course! So just to clarify before I answer your question, even though IX Swap focuses on security tokens, the IXS token is a utility token that soon can be traded freely on any cryptocurrency exchange.
Julian Kwan: And anyone can buy and sell it.
Sly Cooper | DeFi Raccoons: That’s a good clarification indeed. If it was a security token itself, it’d be even more regulatory hassle I imagine — seen few examples in the past regarding those.
AO: So here are the features of the IXS tokens:
IXS token holders will be able to stake their tokens on IX Swap to receive an interest rate as income. Platform earnings in the future will also be distributed to IXS token holders.
IXS token holders will also be able to stake their tokens for governance related to the activity of IX Swap.
IXS token holders will also receive priority access to new STO issuances on the InvestaX primary STO issuance platform.
Investors / traders on the IX Swap platform will be able to trade with more liquid markets compared to what is available now and will also be able to earn income by doing this.
Issuers will be able to create their own liquidity pools and earn a portion of the trading fees to create their own liquidity. This in itself will create a paradigm shift for the industry providing this groundbreaking liquidity solution for the STO/TSO ecosystem.
AO: We also intend to reward early IXS holders with a boosted yield when staking IXS with us early, along with many other exciting opportunities to come which we will release in due time.
Sly Cooper | DeFi Raccoons: Glad to see you’re rewarding the early supporters as well. Boosted yield and early access.
Sly Cooper | DeFi Raccoons: by the way, could you share some key figures regarding your tokenomics? Also, do you implement an inflationary or a deflationary model in the longer run?
AO: As you can see from our tokenomics, we have ensured that tokens are released gradually over time to avoid inflating token supply too quickly. Furthermore, the team/strategic partnerships are all vested over a 3 year period which is longer than most projects. We want to ensure that the team is aligned with payouts with the long development roadmap for IX Swap.
AO: The IXS tokens also have a distinct deflationary economics function to ensure value is created for our token holders the more the platform is used. 5% of Fees will be sent to a permanently locked vault reducing the overall token supply. 5% of Fees will also be sent to a vault to purchase IXS tokens. Rewards earned on the platform will be distributed over time to ensure token inflation is reduced. These factors will create a deflationary effect on tokens the more the platform is used.
Sly Cooper | DeFi Raccoons: Quite well vested, definitely helps with growth as the unlocks would be relatively small.
AO: Indeed! We want to ensure our tokens accrue value over time! And to perform along with the platform.
Sly Cooper | DeFi Raccoons: Got caught up with the numbers there a bit. How much would that actually account as marketcap at TGE? I mean what are the prices at each of the rounds, or is that public yet?Julian Kwan: its public, let us share here now.
Sly Cooper | DeFi Raccoons: Gotcha, that’s really small for such field that you’re working on.
AO: We only did a private round prior to our public which will be annouced soon!
AO: Yes, we decided to not go overboard with the raise given the current market conditions.
Sly Cooper | DeFi Raccoons: Really eager to hear more details about that soon then.
AO: To ensure that there is sufficient demand in the market to support the unlocking supply.
Sly Cooper | DeFi Raccoons: seen many projects do this mistake so glad you kept things under control.
In long run quality will show anyway but surely will help to launch in a good market and not get drawn down by external factors.
AO: Of course, we want the best for our stakeholders.
Sly Cooper | DeFi Raccoons: You both mentioned being tied up with InvestaX which is a Singapore-licensed brokerage/dealer platform for Digital Securities Offerings (or STOs), right? So let’s say that I’d wish to buy security such as a corporate bond using IX Swap, how does it actually function? I’ll swap some of my IXS tokens and simply get the tokenized corporate bonds in return, and from your end, this trade would happen through a licensed platform like InvestaX? Am I completely off here?
Julian Kwan: yes thats correct. IX Swap will not tokenize these securities. IX Swap will only be facilitating the trades of Security Tokens and Tokenized securities (Which have already been tokenized). What you are referring to is the role of a security token issuance company, which would be able to take your assets and convert them into a token representation.So here’s how it would happen. An issuer, say Space X wanted to tokenize their company, they would approach the token issuance company for tokenization. After tokenizing the company they would then list or create their own liquidity pools on IX Swap so that individuals like you and me can trade them freely using IXS or a stablecoin.
AO: IX Swap is integrated to the licensed broker dealers like InvestaX to facilitate the trading process.
Sly Cooper | DeFi Raccoons: Got it! So it’s more of the swapping layer and to provide liquidity to ultimately then facilitate those trades through the licensed brokers. More simplistic to understand actually, thank you for the explanation!
AO: Yes exactly!
Sly Cooper | DeFi Raccoons: I also read that you’ll be using third-party custodians to store the assets on behalf of the customers… So what kind of benefits does it bring to lead the tokens to a third-party custodian?
Using a 3rd party custody provider ensures safety and security of the assets being traded on the platform. Similarly, because we are dealing with securities and not just crypto, many jurisdictions will require a licensed custodian to handle the share registry recording and safekeeping of the security tokens.
Sly Cooper | DeFi Raccoons: Also what I wanted to ask — as you work with some generally more regulated stuff, would using your platform require a KYC from our end as users, or that’d be handled by these licensed brokers or other layers without needing one from us?
Julian Kwan: yes but nothing less that what the leading crypto exchanges require.
Sly Cooper | DeFi Raccoons: I guess many people would wish to have such services even for regular crypto holdings — non-custodial is nice but too many responsibilities for most of us to understand.
No no that’s not a bad thing at all. Was only thinking as you’ve a great regulatory approach here so would fit the picture.
AO: Yes it is also pretty costly to do as an individual . IX Swap is helping our users to facilitate this!
Sly Cooper | DeFi Raccoons: You’re aiming for the mass public directly from the beginning then? Or are there some restricted areas? How big of a team do you have behind the project actually?
Julian Kwan: even CZ understands where this is all going. https://www.coindesk.com/binances-cz-is-looking-for-his-replacement-as-exchange-gets-regulatory-house-in-order%20?utm_source=Sailthru&utm_medium=email&utm_campaign=NODE%20JULY%2028%202021&utm_term=The%20Node
Julian Kwan: IX Swap team has a team of regulatory experts on board. We welcome any and every STO holder to utilize our platform to trade security tokens. Certain projects and issuers might have restrictions on tradability of some tokens (ie. restrictions might be on country of origin). However, these restrictions are put in place by the issuers.We are actively looking to expand our team, but currently we have 20+ people on our team. 19 of them are on linkedin so check them out! https://www.linkedin.com/search/results/people/?currentCompany=%5B%2274350435%22%5D&origin=COMPANY_PAGE_CANNED_SEARCH
Sly Cooper | DeFi Raccoons: That’s quite a team already prior to launch but yeah thinking about legal only it definitely needs a lot of work behind the scenes.
Julian Kwan: we plan to double the team after TGE.
Sly Cooper | DeFi Raccoons: What kind of positions would you have open right now by the way? Asking for a friend, haha.
We definitely have a lot of “white hat hackers” every now and then here on the AMA’s. Might be a great opportunity to get involved in something big.
Julian Kwan: great sure, send them through to firstname.lastname@example.org, Shara is based in the Nordics too so close by.
Sly Cooper | DeFi Raccoons: Here’s your chance Raccoons. Ah, no kidding? Maybe we’ve met, small circles here.
Julian Kwan: always looking for great people that want to help us tokenize the world.
AO: You guys should connect. Maybe we’ll see you on the team soon.
Sly Cooper | DeFi Raccoons: Haha, we’ll see — must apply.
Unless you feel like I’m missing some key topics here, let’s finish the first section with a little look in the future of IX Swap.
What kind of things are you planning to conduct within the remainder of 2021? Assuming that you’re listing within a month or two, what are the next steps after that? When would the swap platform be available for the mass public?
AO: We expect the platform to be fully functional by January 2022. That said, we will be rolling out features along the way that ecosystem participants will be able to contribute and benefit from. Our first launch of the platform will be in Sep/Oct this year. Crypto trading functionality will be available and backend connectivity to both the licensed intermediaries will have been completed.
Given that this is the first in the world and we are dealing with securities and licensed intermediaries, we will be conducting rigorous testing to ensure that our stakeholders are provided with a seamless and safe environment for trading STOs.Please also note that IXS token staking will be available immediately after TGE and token holders will be able to stake IXS tokens for income. Stay tuned for more information.
Sly Cooper | DeFi Raccoons: So time to get in early and get those nice APRs from the beginning. So by time the platform goes live, you’ve already earned some decent amount if IXS. Then things get even more juicy I can imagine.
AO: haha yes and many more features to come along the way!
Sly Cooper | DeFi Raccoons: We’ll stay tuned for sure! Well, that’s all from me personally tonight. Thank you for your very thorough answers guys.
Sly Cooper | DeFi Raccoons: Let’s move onto the Twitter round, shall we? We’ve prepared two Twitter questions that the fellow Raccoons had asked prior to the AMA.
Question 1: @topalsolucanafk asks:
“Can you list 1–2 killer features of this project that makes it ahead of its competitors? What is the competitive advantage your project has that you feel most confident about?”
AO: It’s great that someone has asked this. This is actually quite relevant due to the recent news that Binance and Uniswap had taken down some tokens because they did not have security licenses and these tokens were considered securities/security tokens. Just because you create a synthetic version of an asset doesn’t mean they lose their tag as securities.
The main difference between us and our competitors is that we are working with licensed intermediaries and trading with actual security tokens that have claims over real world assets and not just synthetic positions. When you are trading securities, a license will be required. This is how securities are dealt with now and that’s just the way it is. However, because we are integrated with licensed intermediaries we have the ability to trade these tokens classified as securities and these exiled tokens are welcome to find a home at IX Swap.
Links to articles for reference:
Question 2: @jihan2tokyo asks:
“The lifespan of any AMM is the support of liquidity providers, without them any swap system will fail. So, can you explain to us the motivations that IX Swap offers to increase the number of acceptable people and users in your ecosystem?”
Julian Kwan: in response to the 2nd question, by design, anyone that issues an STO can now start the 1st liquidity pool, so growing the ecosystem focuses on helping all of those groups, real estate, private equity, venture capital, startups fund managers etc etc, its enormous group, on the other side we are growing the investor base through B2B partnerships and also allowing any investor to use ixswap as an individua
Julian Kwan: The current security market lacks trading venues to provide liquidity for trading or even buying these security tokens. Most platforms in the world are currently trading security tokens in an OTC manner, similar to what we saw in DEXes pre Uniswap.
Julian Kwan: IX Swap is a revolutionary adaptation of the crypto world for security tokens. It allows security token holders to provide liquidity to IX Swap pools and receive a share of the fees of the pool allowing liquidity providers to take part in the fees previously earned by exchanges and market-makers.
Sly Cooper | DeFi Raccoons: That’s very thorough from you, thank you for explaining.
LIVE AMA QUESTIONS
Sly Cooper | DeFi Raccoons: We’ve covered quite a bit already, but we still have the perhaps most exciting round coming up, the community questions. Do you think that we should unleash the Raccoons for the live round?
AO: You’re most welcome! Bring it! Unleash the racoons!
Sly Cooper | DeFi Raccoons: @SharaaMiran Will be joining Julian and Aaron to respond your questions in this madness haha! Welcome Sharaa!
Sharaa Miran — IX Swap: Thanks!
Question 1: @bisal2670 asks:
“Have you being audited ? Have not heard you talk about that security of funds is what every investor craves for and plans to escape incase of insecurity if funds,scams and rug pulls ? How strongly built are your security put in place?”
AO: We have a security audit for our token is in the next couple of weeks. IX Swap’s team and strategic partners have a proven track record starting over 15 companies and a vesting period and tokens are distributed periodically over 3 years. The team has aligned payouts with the long development roadmap for IX Swap. No rug pulls from us.
Julian Kwan: Any licensed activity must be audited, as well as tech audits, and we believe security is the most important component of any project
Question 2: @naomi_996 asks:
“Which technology makes you Unique than other? Is #IxSwap is more advanced & useful platform than any other platforms?”
Julian Kwan: One key is you need licensed partners to stake and trade STO, those licenses take years to get, so unlike uniswap that was copied immediately by many players, IXSwap has a great first mover advantage and a MOAT around it due to license requirements
Question 3: @sdRifad asks:
“NFT is getting more popular now a days. It looks NFT has bright future. So do you guies have any plan to include NFT to your project?”
Sharaa Miran — IX Swap: We do not have any plans at the moments but this may be subject to change in the future.
Question 4: @mauly98 asks:
“Where can i buy your token? How can i stay updated with your project? provide your all social media links?”
Sharaa Miran — IX Swap: Currently not listed anywhere but we will be in August so keep up to date with us until then!
Litepaper : https://docsend.com/view/kj5qevttdwb4zqqj
AO: Please stay tuned to our annoucements on our social media channels
Question 5: @xperia3 asks:
“Hi! 🔄 IX Swap is trying to save its early investors and keep its token value high by the long vesting periods! This is great. I would like to know your future plans to increase the value of $IXS? How will you promote $IXS and bring more investors to IX Swap?”
Julian Kwan: Ixswap is protocol agnostic and STO platform agnostic, so we plan to maintain and grow the value of IXS by continuing to grow the user base by partnering with more and more sto platforms in the world and more and more investor groups
Question 6: @millu106 asks:
“Community is important for every project. How does Your project takes its importance and what plan do you have to expand community in global level like ambassador program?”
Sharaa Miran — IX Swap: Yes you are right! We do have some exciting plans to build a huge community for the STO space and we do plan to expand to a global level and introducing a ambassador program.
Question 7: @Boult490 asks:
“What is the competitive advantage your platform has that, you feel most confident about? Can you list 1–3 killer features of Your Project that makes it ahead of its competitors?”
Sharaa Miran — IX Swap: That we have regulations on our side and a great team with lots of experience in blockchain and capital markets.
Question 8: @Zidny_Lathifa asks:
“The current form of IxSwap is nothing new, so many platforms are being launched every day, so why did you decide to enter this bustling market? In this market, what are your chances of winning over your users, what special things can be considered an advantage for you?”
AO: IX Swap is the first platform to work with licensed partners to facilitate trading of securities. There have been many other innovative platforms that you are referring to that are trying to replicate IX Swap without licenses. However as we’ve seen in recent news, regulations catch up eventually.
Question 9: @imtarun08 asks:
“Super Excited for your Private and Public sale, When will they start? How can I parti”
Sharaa Miran — IX Swap: Awesome! Stay tuned on our social medias, private sale is closed but Public sale is happening in August!
Question 10: @tsywwuid asks:
“Where can i buy your token,Does Kyc is must? How can i stay updated with your project?provide your all social media links?”
AO: KYC is not a must to buy our token on the public sale but KYC will be required if you want to trade security tokens on the platform.
Question 11: @Cryptoqueen96 asks:
“I took a look on your team members from the website, I saw that you are using Nick names or bot names for that can you give more details about that who are they?”
Sharaa Miran — IX Swap: Yes, we havent updated our website on the team section so if you are interested in seeing who is on our team check out our linkedin!
AO: If you follow our medium channel we are releasing team info slowly… stay tuned!
Julian Kwan: hey everyone thanks for the questions and time today really appreciated , if you have unanswered questions please send them to email@example.com and he will be happy to get back to you.
Julian Kwan: he is also single, send any marriage proposals too.
Sharaa Miran — IX Swap: ….
Sly Cooper | DeFi Raccoons: Thank you so much for your effort and time guys. Was a great pleasure having you here today.
AO: Thanks for all your time. We really appreciate it! It was a pleasure being here in this awesome community today!
Sly Cooper | DeFi Raccoons: Fantastic, we’ll surely keep an eye (or two) on you and your developments!
Sly Cooper | DeFi Raccoons: That concludes the AMA today.
. . .
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IX Swap is the last infrastructure piece needed to bring life to the security token/tokenized stock industry. IX Swap will revolutionize the STO/TSO industry and is the liquidity solution for all STO/TSO exchanges globally, bridging the gap between CeFi and DeFi.
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