In Deep Dive 02, we covered the pain points that IdeaFeX addresses. IdeaFeX them with an easy-to-use service marked by efficiency and robustness. The three key pieces of the puzzle are (i) our marketplace interfaced with distributed ledger, (ii) our unique auction method that empowers multilateral financing deal flow, and (iii) our fully-compliant, manipulation-resistant exchange.

Two decades of continual innovation has online marketplaces deeply ingrained in how we shop. Consumers enjoy broad selection of merchandise well-organized in adaptive categories. AI-aided suggestions, filters, detailed descriptions, and peer reviews further empower them. Door-to-door delivery options complete the experience: one can navigate through tens of thousands of products, visit dozens of shops, choose the most appealing offer at the best available price, and have the purchase delivered before the day ends.

IdeaFeX transforms financing and investment by bringing the convenience and efficiency of marketplace to the world of DLT tokens.

Powering new asset classes is the first step we take in building IdeaFeX. Here, we aim to bring attractive financing and investment opportunities to a larger audience; hence, instead of going down the rabbit hole of complex derivatives, we stick to real-world assets with off-chain value. From the perspective of investors, individuals can easily understand these assets, and corporate actors may readily integrate their investment into their supply chain and/or business model (e.g. by flexibly trading unused capacity or by sourcing through B2B presales). From the perspective of fundraisers, these asset classes reflect valuable aspects of their existing operations that have been regrettably overlooked as financing resources.

Specifically, we introduce exotic assets and product futures. While presold products are physically delivered after maturity, exotic assets are rent-generating. Some notable examples of presell-able products include fine wines, consumer electronics, and electronic components, etc. Their customers may be either the end consumer or the next link in the supply chain. Product futures share many features of commodity futures. Notably, the investor need not be the consumer — combined with the possibility to delay delivery, this dramatically broadens the investor base and increases the number of units an investor can purchase at a time.

Before IdeaFeX, exotic assets were indivisible; their ownership was highly illiquid. Collectible art, real estate, infrastructure, and production capacity are some notable examples. Traditionally, external investment in these assets only occasionally made sense, and only for a few investors. IdeaFeX makes it possible for investors large and small to participate by enabling partial ownership governed by smart contracting. These assets can act either as a haven in periods of market instability or a source of passive income.

Beyond these new asset classes, we will also support traditional securities such as shares and bonds. This option is empowering for startups. The benefits in investor engagement, however, also apply for mature firms. Further, we will continually integrate new functionalities to the DLT tokens on our marketplace; hence, investors as well as fundraisers will enjoy exceedingly excellent experiences — a feature that traditional investment channels cannot match. We discuss the asset classes and their fulfillment in further detail in future posts; they are also available in the<Market Sizing> and <Features Deep Dive> sections in our Token White Paper.

With a high number of assets in a wide array of categories, navigation is key. We integrate intelligent and adaptive search and filtering functions found in leading e-commerce platforms such as Amazon. Investors can browse, search, filter, and compare asset listings. These functionalities greatly facilitate navigation, comparison, and decision-making; they also boost fundraiser-investor matching as more precise searches become a reality.

Last but not least, as a marketplace we also secure the fulfillment of the investment terms with smart contracting. Fundraisers that have presold products will deliver them physically to investors post maturity (either upon maturity or with the option to delay delivery). Those that have auctioned off exotic assets, shares, or bonds will distribute rents, dividends, or coupons respectively. While we will work with investors in the unfortunate event of a breach of the investment terms, we leverage smart contracting to optimize parameterized handling of cash flow in order to prevent this from ever happening. Moreover, we will continually integrate the latest developments in DLT protocols so as to elevate investor engagement to a new level. These aspects all contribute to interest alignment. Please refer to the <Features Deep Dive> section in our Token White Paper for further details.

#IdeaFeX is the #marketplace for the #financing and #investment of #tokenized real-world assets, in particular #ExoticAssets and #ProductFutures. This Deep Dive series is developed from our Token White Paper.