09 May 2018
Observers of the cryptocurrency exchange market have been anxiously waiting for an update from NEX concerning their token sale. Well according to information filtering in from this cryptocurrency exchange – the token sale is good to go. NEX have taken care of all the technical aspects of the token sale, but are presently waiting for the Financial Market Authority (FMA) approval to kick-in.
The disappointing thing is that there is no schedule for the token sale as at yet. This is because FMA is not obliged to state any approval timeline to prospects. Whenever the FMA gives their approval to the token sale process by NEX Exchange, the cryptocurrency exchange has promised to update the community on a set date.
Nevertheless NEX has informed the community that the token sale will commence precisely one week from the date of the FMA approval. The one week tentative schedule for the token sale after FMA approval is necessary according to NEX, as it will allow the community to have sufficient time to prepare for the token sale.
For anyone that is still not sure about the NEX Exchange token sale and the FMA approval process. NEX has provided some answers to those nagging questions that the community may be eager to ask. Below is the Q&A session to keep the community abreast with recent developments with the FMA. As well as to allay any misgivings about the approval process and pending NEX Exchange token sale.
The first thing the community needs to know is that the token to be offered for sale by NEX is a security token. As it is a security token, it falls under the regulatory jurisdiction of FMA. If you are wondering what benefits a security token can possibly provide users, well for starters it will provide investors with protection.
A security token will ensure that investors are protected against insider trading, market manipulation and fraud. Secondly, as a security token – investors can literally share in the profits of the exchange. They can be paid dividends from the fees that the exchange collects. However, for investors to enjoy these benefits the NEX Exchange token sale needs the approval of the FMA.
In practice any token used is a security as they are only worth their value in gold by virtue of the overall success rate of the exchange. The value of tokens are not dependent on the activities of token holders or fixed utilities. If an exchange is no longer functional, its token will be worth nothing.
There are other platforms that function without operating in accordance with anti-money laundering laws and proper security procedures. However, these platforms put their investors at risk of colossal losses, regrets and heart breaks when the law finally catches up with them.
The details of the FMA approval process cannot be exhausted in this article, but you can find more details on the website of FMA. However, NEX has stated that the process consists of thorough legal analysis and in its own case it has developed an 80 page document towards the actualization of the approval process.
According to NEX a utility token is used basically as a medium of exchange for services rendered. On the other hand a security token is an investment tool from which investors can come to expect a reasonable return on their investment as a result of an appreciation in their value. With the approval of FMA the NEX token would clearly be a security token devoid of any debate or confusion as is the case with some other tokens.
Will the token sale take place soon?
If it was up to NEX the token sale would happen today, but it is not up to NEX at this point in time. FMA is a regulatory body and is under no legal or constitutional obligation to give a timeline for the approval process. Notwithstanding the general impression is that the approval could come through at any moment.
So a tentative schedule has been set for the token sale. Which will occur precisely a week from the date of the FMA approval. However, it is the hope of NEX that the token sale will happen in May.
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