RWA Track's "Uniswap": IX Swap Research Report

Larry Fink, the CEO of BlackRock, believes that tokenization is the future of finance and a key market evolution that is influencing other major financial institutions. Research shows that real-world assets (RWA) are becoming a crucial part of the cryptocurrency industry. As of May 2024, the RWA market has exceeded $6.6 billion, and asset tokenization is expected to reach $10 trillion by 2030.

The World Federation of Exchanges published a paper this month on tokenization, calling it a natural progression of finance. JPMorgan is quite active in this field, and Fidelity International has tokenized shares in money market funds using JPMorgan's Onyx Digital Assets platform.

The custodial trust and clearing company recently completed a pilot test to evaluate fund tokenization technology and standards. Deutsche Bank has joined the Monetary Authority of Singapore's Project Guardian, a blockchain alliance that includes several large banks, aimed at exploring interoperable tokenized fund blockchain platforms.

Public interest in blockchain narratives is growing increasingly, leading to fierce competition among many projects aiming to become leaders in the field. Among these projects, IX Swap stands out with its unique approach and ambitious goals. IX Swap is a real-world asset tokenization launch platform and decentralized exchange (DEX) that facilitates the trading of security tokens through licensed custodians and brokerage firms. Its aim is to democratize investment opportunities in the private placement market and address the liquidity challenges faced by the tokenization industry.

Let's go back to 2017. At that time, if you were one of the top ten cryptocurrencies, you would have significant market-making support and could afford to be listed on major exchanges. However, most altcoins were limited to basic listing platforms, lacking order books, market makers, or liquidity.

The emergence of a certain DEX is a revolutionary innovation in the DeFi space, allowing anyone with two cryptocurrencies to create liquidity pools through smart contracts. This enables asset holders to earn fees and trade directly on the platform.

Today, as more assets are tokenized, the RWA sector is also facing similar liquidity challenges. IX Swap aims to become the "some DEX" in the security token space, allowing anyone with RWA and USDC (or other cryptocurrencies) to legally create liquidity pools. This facilitates the buying and selling of tokenized assets, addresses liquidity issues, and makes private market investments more convenient.

Overview of IX Swap Products

IX Swap secondary trading product

Over the past decade, capital growth in the private equity market has been stronger than in the public markets, especially since around 2016. Additionally, the private equity market has also shown greater resilience in the face of emotional fluctuations. IX Swap aims to leverage these advantages by opening up the private equity market to everyone, providing access to assets that were previously unavailable.

The platform allows trading of Security Token Offerings (STOs) and Fragmented NFTs (F-NFTs), digitizing traditional asset portfolios and providing access to real-world assets such as private equity, real estate, infrastructure, natural resources, and private debt. IX Swap achieves this by offering regulatory-compliant liquidity pools and Automated Market Making (AMM) functionalities. As a bridge between CeFi and DeFi, IX Swap facilitates trading through licensed custodians and brokers, ensuring true ownership and claims to these assets.

IX Swap Launch Platform

The IX Swap launch platform is a crowdfunding platform that offers unique investment opportunities in promising startups. It allows investors to participate in tokenized trading in fields such as finance, blockchain, energy, technology, real estate, healthcare, and gaming.

Every investment opportunity on the platform is reviewed by the team to ensure the safety and reliability of the investment. The IXS launch platform complies with regulatory requirements, provides a secure investment environment, and uses security tokens to represent investors' equity, making transactions transparent and secure on the blockchain.

IX Swap's SaaS solution

IX Swap's SaaS liquidity solution enhances the liquidity of real-world asset platforms through automated market makers and liquidity pools. IX Swap connects security token issuers with liquidity providers by offering a monthly subscription-based SaaS solution. The platform automatically matches buy and sell orders, ensuring continuous liquidity for security tokens. This service leverages smart contracts to facilitate secure and transparent transactions, making it easier for token holders to buy and sell tokens without experiencing significant price fluctuations.

The key advantages of this solution include regulatory compliance, ensuring safe and legal operations, as well as cross-chain compatibility. These advantages enable the solution to operate across different blockchain networks. IX Swap also provides comprehensive consulting and support services.

IXS token

The IXS token is the native token of the IX Swap platform and serves as the foundation of its ecosystem. Through a built-in deflationary mechanism, the IXS token increases scarcity and value by incentivizing ecosystem growth and through buyback and burn operations. Benefits of using IXS include discounted fees, access to the IXS launch platform, and SaaS liquidity solutions. The IXS token also serves as the native payment token for InvestaX, supporting staking for rewards and enabling liquidity mining to enhance returns. Additionally, holding IXS tokens will grant the ability for on-chain governance, allowing participation in the management of its ecosystem.

The following are the current market statistics for the IXS token as of June 20, 2024:

• Market Cap: $121,211,081
• Fully diluted valuation: $124,855,283
• 24-hour trading volume: $1,624,331
• Circulating Supply: 174,746,266 IXS
• Total Supply: 180,000,000 IXS
• Maximum Supply: 180,000,000 IXS
• Network: Ethereum (Mainnet), Polygon (Bridge)

Team, Financing and Partners

The IX Swap team began working on the concept of developing automated market makers for the security token industry in 2017. The platform officially launched in September 2021 and was founded by Julian Kwan, Alice Chen, and Aaron Ong. Julian is an entrepreneur with experience in digital platforms and the blockchain field, Alice has a background in business and law, while Aaron focuses on capital markets and investment consulting.

Recently, IX Swap was acquired by InvestaX's parent company, which is a leading tokenization platform licensed in Singapore. This acquisition aims to enhance its capabilities, address liquidity issues in the industry, and expand its market presence and products.

financing round

First Round of IDO (September 7, 2021): Raised $186,165 at a price of $0.389 per token on the OccamRazer platform, achieving a 2x return on USD investment. The pre-round valuation was $70.02 million.

Second round of IDO (September 8, 2021): Raised $100,000 on the Poolz platform at a price of $0.14 per token, achieving a 5.56 times return on investment in USD. The pre-financing valuation was $25.2 million.

IEO on a Certain Exchange (September 3, 2021): Raised $700,000 at a price of $0.14 per token on the Spotlight of a certain exchange, achieving a 5.56 times return on US dollar investment. The pre-funding valuation was $25.2 million.

Private Round (June 2021): Raised $1.75 million at a price of $0.05 per token, achieving a 15.55x return on investment in USD. The pre-funding valuation was $9 million.

Partnership

This year, IX Swap has established several key partnerships to enhance its platform. The collaboration with Electrowizy will focus on gamifying the management of renewable energy assets, while the partnership with Nanuhm Angels is dedicated to promoting the tokenization of Korean content to global retail. Support from Spartan Group and Faculty Group reflects IX Swap's commitment to democratizing access to RWAs. Collaborations with Cogito Finance and QuillAudits enhance liquidity and security, while alliances with AlphaX and RealtyX aim to revolutionize real estate tokenization. Through these strategic partnerships, IX Swap is committed to pushing the boundaries of the RWA market and driving innovation in decentralized finance.

On-chain Analysis

Since November last year, the IXS token has been outperforming the market, entering a sustained upward trend with several consolidations along the way. Despite its strong performance, the project's market capitalization remains relatively small, leading to occasional fluctuations and high volatility.

The data comes from the Smart Money feature of a certain data platform, and since the beginning of the year, the number of smart wallets and holders has been steadily increasing. However, this growth has not been accompanied by a significant increase in balances. It is important to note that this feature only considers wallets that have performed well over a longer period. In today's market, individual investors often use multiple wallets, so this data may not fully reflect the whole picture. Nevertheless, it remains an interesting trend.

Last week, one of the largest wallets accumulating IXS was discovered, holding assets worth a total of $1.1 million, including 198,839 IXS tokens, approximately $150,000. The wallet belongs to the well-known KOL and investor Chicken Genius, who publicly shared his wallet this year. The wallet address is: 0xeb2eb5c68156250c368914761bb8f1208d56acd0. In the past week, there have been no significant IXS sell-offs from this large wallet.

Bullish Fundamental Factors

• IX Swap is telling an engaging story that is gaining significant attention and demonstrating enormous growth potential. If this momentum continues, and the project can maintain consistent and credible activity, it may ultimately be regarded as a pioneer in its field, with higher valuation potential.
• In the current market, many newly launched projects have a high fully diluted valuation (FDV), indicating that they may be overvalued relative to their fundamentals and market position. However, IX Swap's FDV is approximately $135 million, which is comparable to its market capitalization. This provides a more balanced valuation and an attractive risk-reward ratio.
• The project prioritizes security and compliance, which is crucial for gaining investor trust. This focus reduces the risks associated with fraud and legal issues, making it a more reliable investment.
• IX Swap is led by a transparent and experienced team, which is crucial for understanding the market, avoiding common pitfalls, and effectively executing its vision.

Basic Factors of Bearishness

• Despite the market value of IX Swap being less than 200 million dollars,