We received a lot of questions regarding the upcoming fundraising rounds for Tixl. Since the fundraising strategy also relates to possible exchange listings, this article shall outline our next steps.

Let’s break in with the most significant news right from the start. Starting from today, we will not continue our efforts on the IDO/IEO front. Instead, token phase 3 will be carried out as a private sale same as phases 4 and 5. With the release of this article, we will update our website and whitepaper accordingly.

Why did we meet this decision? First of all, we are still in contact with Binance in regards to our Binance DEX proposal. Due to the feedback we received lately, we decided to make it easier for Binance to accept our proposal and to remove the IDO complexity. IDOs are still a very new trend and involve some uncertainties for investors. For example, it’s not possible to integrate a KYC-process into the offering itself. Also, the review for a listing depends on different criteria than a traditional listing.

Important note: That does not mean that a Binance DEX listing for Tixl is guaranteed without the IDO part.

But the Binance DEX proposal is not the only factor that brings us to our decision. By summing up our learnings over the past months, we actually believe that going into private sales is better for the project in the medium term. The efforts for getting on a solid exchange for an IDO/IEO are extremely high and most of the solid exchanges have queues filled by other projects for months. Not to talk about the fees that some exchanges are charging for an IEO. On the other hand, we already have some requests by larger private investors being interested in buying Tixl tokens.

We also think that going into private sales will be better for Tixl’s price development. A lot of people only invest in IEOs solely based on speculation and with the goal of selling after making 50–100% profit. Larger investors rather invest because they believe in the project in the long run. That leads to the following question:

At what Price will Tokens be sold in the Private Sale?

The price determination in phases 3–5 has to be based upon the current market price at that point. No private investor will purchase tokens from the Tixl gGmbH in case they could buy cheaper on the public market (exchange or OTC). However, there are two options for conducting these sales:

Likely, the trading volume for Tixl will be rather low in the early days of the project. As a result, investors might not be able to purchase a large number of tokens at the current market price. In this case, buying from the Tixl gGmbH would be a good option. Larger investors are probably not interested in (day) trading Tixl tokens but rather believe in the long term success of the project. Due to that, it’s planned to sell tokens with holding periods but with a price just below the market price. Assuming a market price of 50 USD per 1 MTXLT, it could make sense to sell 10,000 MTXLT to an investor from the payment industry for 45 USD per 1 MTXLT with a contracted hold period of two years.

What are the Next Steps

At first, we will update our online presence as soon as possible. That includes the following mediums just to mention a few:

Whitepaper Website Binance DEX Proposal ICO Listing Pages

Then we will continue our negotiations with other exchanges than Binance DEX so that we have a fallback and Tixl can be traded publicly (besides OTC) soon. Nevertheless, we will still continue with our work on the Binance DEX proposal.

As a consequence of our decision, we will also start negotiations with private investors for purchasing Tixl tokens so that the funding goals can be reached in the long term.