Frequently asked questions

IdeaFeX unlocks potentials in information technologies and blockchain solutions for financing and investment. We present an easily-navigable marketplace that supports new classes of real-world assets, notably exotic assets and product futures, much of which have been illiquid and/or indivisible. Our unique auction method together with our innovative adoption of distributed ledger technology empowers fundraisers and investors with efficiency and robustness hitherto unseen.

Currently, inefficient processes, unnecessary restrictions, and misaligned interests plague financing and investment. Combining marketplace format, auction method, and exchange support, IdeaFeX offers transformational combinations of high access, low cost, high flexibility, and high liquidity to new asset classes that can quickly grow into a trillion-dollar market. We identify openness, easy navigation, efficiency, and robustness as our unique selling propositions.

Our marketplace is fully compliant with all pertinent asset trading, payment, and exchange regulations. This means all users, including fundraisers, pass KYC (Know Your Customer) background checks. Moreover, for exotic assets a qualified custodian (such as a bank) will be named by the fundraiser, while for product futures and traditional securities external audit is required.

With blockchain tokenization, we keep the separation between our marketplace and investments made against listed assets. The fundamental ownership and cash flow of these investments will be tenable independent of our marketplace, thus providing extra robustness. Moreover, it makes listing, trading, and exchange much more cost-effective. Therefore, even though blockchain is not necessary for a centralized platform, it makes the most important records of the investments decentralized.

Anyone, individuals or companies, can use IdeaFeX to list tokenized assets, so long as they pass KYC (Know Your Customer) background checks and produces audit reports from qualified external parties or certified custodians.

A blockchain is distributed record of transactions that relies on cryptography to tamper-proof the ledger entries and peer-to-peer interaction between participants without the need for a third party to reconcile views. Further, code execution is deterministic on distributed virtual machines powered by blockchain, thus preventing any disagreement between parties.

As such, blockchain is a DLT; other DLTs that are not blockchain also exist, notably direct acyclic graphs methods.

Tokens are digital units of account resulted from the instantiation of a piece of code on a native distributed ledger platform. As such, tokens can be considered as a medium of value transfer between various actors on the distributed ledger concerned. A token can be managed just like the native cryptocurrency of the native DLT platform; it typically inherits the properties of tamper-proof registry, time-stamped transactions, and traceable transfers. Using tokens on a distributed ledger allows us potentially to automate some or all the value transfer mechanisms that can be attached to a token upon agreement by parties.

Strictly speaking, representing an asset as a token on a distributed ledger equates to creating a title of ownership that, instead of being a paper with a signature, is instantiated as a smart contract on a distributed ledger. In effect, the token is a contract between the holder and the custodian of the asset, and it needs to have legal ground to be enforced.

From the point of view of asset managers, a tokenized asset is a virtual object that acts as a share in an underlying physical asset. On IdeaFeX, these tokenized assets are always fulfillable, physically delivered or otherwise. One can also consider the token as an investment instrument that is backed by physical wealth. For example, a copper mine can be tokenized, and the resulting tokens are shares of ownership in the copper mine. In comparison, most currencies of the world today are not backed by physical ownership of any underlying physical asset. For example, one cannot exchange a euro or dollar for a fixed amount of gold as it used to be the case.

IdeaFeX is serving in a regulated industry and is required to comply with KYC (Know Your Customer) procedures that prevent terrorist financing, money laundering, and other criminal activities. We are committed to the protection of your personal information and will never sell or exploit your personal information, including usage preferences, for financing gains.

We aim to launch a demo towards the end of Q2 2019 and a full platform by the end of 2019.

To know more, please read our white paper.