IONECTAR’S JOURNEY – FROM INCEPTION TO THE NEW FINTECH FRONTIER

Dear supporters and followers,

This time we will touch upon the subject of the corporate structure of our project and how it developed in steps up to the current point. We will also briefly take a look at what there is to come for our project in the future in this area.

 

NAMING THE TECHNOLOGY OF IONECTAR

By now it has been properly understood by our followers and by the community that the ioNectar technology is the key element in our system. ioNectar came into being out of the CEO’s intent to solve and overcome some of the structural and systemic challenges that exist in the financial industry worldwide.

This innovative approach over the course of 10 years culminated in a development of a highly specialized and professional tool for financial workers and sophisticated professional asset managers, who want to have the strongest possible grip on risks that exist in the market. Risks in the market are a given, however there is no way around accepting a certain level of risk if one wishes to invest with the goal of creating at least some level of return. The important thing is that tolerated risks do not exceed the returns that one can obtain by taking those risks on and including them in the portfolio.

ioNectar as a name resulted from a long search for the most appropriate tag for a software application that the CEO, CTO and CIO were developing. Every possible string of characters was being contemplated. We searched high and low for it and we have tried most of the “trade-isms in the name that were still available and unused. It goes without saying that this space on the internet is very crowded and almost all the domain names are already taken. Eventually, what turned out to be important is that we wanted to differentiate ourselves from the entire existing market of financial software tools. We did not want to be associated with the word “trade” because we understood that what we are doing is something different.

We asked ourselves about what the core value of our product was. We thought the essence of it should be included in the name. It should be such a word that can represent a name, like a name of a person, a pet or something which has a distinct individual personality. Only in this way will its user adopt it in their everyday work. After nearly a year of venturing this space, at one time when watching the show Gold Diggers on the television, it clicked. When guys in the show were looking for old buried metallic items with their metal detector equipment and when they found some really good precious objects like gold coins from under the ground, they screamed “Nectar, nectar” and they were rejoicing among themselves in their own amusing way.

Thus, the idea went through our minds with a great speed and in an instant burst of thoughts the name “ioNectar” was born. It had all the characteristics we were looking for, it was able to communicate about the essence that the software is capable of producing, it was able to describe how it works as regards to this essence and last but not least, all of this was condensed into a string of characters that was worthy of a true name, a personal name that would become a badge on the software tool. This software tool is more than just a trading platform and we felt this was the only way to push it above the average crowd, so that it would stand out from everything else that exists in the market of financial technologies.

 

PREPARATIONS FOR THE ICO

At that time, we were already confident that we were on the right track. The name ioNectar caught on so quickly that in a few days’ time we felt like our trading platform had been named ioNectar ever since we remembered.

Of course, our focus was already moving onto the next question. We had the product and we understood we were successful in differentiating it from the boring and abstract “trade-isms.” But the plans were to place it on the international market and also to connect it with the developing blockchain area since the platform technology itself is heavily based on advanced principles about to be introduced in blockchain in the future. In this respect we had to find a safe and stable jurisdiction that would meet our needs and work for our business in the best possible way.

To us London, UK, appeared to be the most appropriate place. London is the financial capital of the world. It is not just a powerful financial centre and a highly important strategic connector for many intercontinental financial transactions – the tradition and the well-known and stable legislative framework available in the UK is also very important when everyone wants to rely on the foundations for a business from the starting point and further from there for many years to come.

The choice seemed fit and we went on to establish a company called IONECTAR FINANCIAL LIMITED in London to support us in the expansion of our business in the traditional and the decentralized world. What was said has also been done. Furthermore, since we were preparing to take on the traditional and cryptocurrency market with our sophisticated and scientific grade software technology, the time was right to start communicating about this technology’s capability to deliver the ultimate safe and stable cryptocurrency. To do it and to expand our capabilities further, we decided to finance the entry into the stable token or stable cryptocurrency market with a Private Placement run by the IONECTAR FINANCIAL LIMITED company.

Private Placement went very well from the beginning although the aggressive cycles in the crypto market create problems for business entering this area because during the downturns everyone seems to get so scared. In the crypto market this can happen on an any given day or even during it, but fortunately, the upside is also pretty potent, so the negative cycles tend to be forgotten and we felt confident that we can reach our goals that we set for ourselves.

 

GETTING USED TO THE RATE OF CHANGE IN CRYPTO

But there is also something else that drives the developments in the crypto market area in a different way than in any other market. That is the rate of change at which things develop and at which new circumstances arise that require a change in the position of a growing business. We always knew that crypto is pretty dynamic. Nevertheless, it has been less than half a year after the stable and predictable legislative framework of the UK was seen as the go to place for a financial project, but now it appeared to be becoming a disadvantage in the particular area of ICOs.

At that time Switzerland was becoming all the rage for crypto businesses and ICO’s. Especially the Canton of Zug was the most progressive out of them all. We had been advised, that for our type of project the Swiss environment will be a must if we really want to align ourselves with our message to the maximum. The argumentation was also that the UK did not prove to be a widely known area from where big ICOs would come and that although the legislative framework of the UK is highly respected for the qualities it has, the traditional aspects of it translated into sluggishness from the crypto point of view. There was simply not enough experience and output in blockchain from the UK, while crypto wanted more changes and it wanted them more quickly.

In this respect during late 2016 and through the entire 2017 the UK was falling behind Switzerland and also behind Asia. We soon recognized that, but we were still positive about the development, since we were observing a positive follow through from the effects of our Private Placement. We knew our project can take off, but we were not 100% sure if we could make a drastic change and upgrade our position in the middle of the Private Placement process.

 

CORPORATE STRUCTURE UPGRADE

During this very fluid and dynamic period, we were receiving information about this international developments of legal backgrounds from Francesca Greco, who also joined our core team. After thorough analysis and research, we were presented with a dilemma. Do we choose to keep our course and stay with the UK company approach, or do we utilize all the options from the improved strength of the team and choose to move our business to Switzerland to underpin the safe and stable approach and message as much as possible?

Although not an easy choice, it was obvious to us all that with the capabilities that our new core team member has brought to the project, we can and we should make that move, because from the perspective of the project Switzerland is the best choice when it comes to safety and stability.

The Private Placement stage of the project completed relatively quickly and our eyes were set on the main stage of the TGE to be launched from Switzerland. After the decision had been made, we were taking big steps and we were taking them quickly.

The expertise from Francesca Greco helped the project to establish a position, which soon became fully compliant with the Swiss regulator’s (FINMA) guidelines in the area of ICO’s/TGE’s. A new company X8 AG was to become the new flagship for our project and from where the TGE would be run. X8 AG is a public company which registered software development as its core activity. Later on, the X8 AG company completed the TGE with flying colours.

 

SETTING NEW KYC & AML BENCHMARK FOR ICOS

On the other hand, the project obtained a regulated asset management company Alpine Asset Management AG. This regulated company meets the strict requirements of Anti Money Laundering and enables a professional approach to KYC and the Asset Management process. Asset Management is a regulated activity and at the same time, this activity sits at the core of our project and also at the core of our product.

Becoming fully qualified on a corporate level for this activity fulfilled our overall position to be able to present ourselves as the ICO/TGE, which is capable of offering a professional financial service to institutional and non-institutional clients alike. At the same time by doing this the project set a new benchmark for the entire crypto and ICO space in terms of professionalism and execution of the KYC/AML processes during the ICO/TGE. To this day we are still proud of this achievement.

Early in 2018 FINMA released the upgraded guidelines for new ICO’s and it quickly became obvious that the project has been ahead of the curve and fully equipped for the business to be developed as planned. It meant a great deal to us as this also means that not just the project, but the investors that invested into our project are also protected to the maximum degree.

 

EYEING A FINTECH LICENSE

What is next for the project in terms of the corporate structure? To understand our plans, one needs to understand the differences between various regulated activities. What is asset management and what is fintech? If you are not an expert, there is an explanation that can make it clear for you without too many technical terminologies.

An asset management company deals with decisions about how to invest clients’ funds for example. It is required for the company to employ qualified experts for this field, that have the experience and expertise to make investment decisions in the name of the client. This includes the decisions about which market instruments to buy or in other words, where to put your money into.

On the other hand, asset management companies cannot be compared to exchanges. Exchanges like Nasdaq for example, are like computerized systems for transparent and orderly exchange of investment instruments between buyers and sellers. The exchange does not ask itself whether a certain investment is a good one or a bad one. It simply deals with the technical process of it in order to make life easier for the market participants to find each other in the market with as little effort as possible and make deals between themselves.

An exchange is a technology business, requiring technical know-how and computer science expertise. Knowledge about asset management will not automatically mean that somebody is qualified for running an exchange business. Therefore, the asset management and the exchange business are strictly separated and the regulator predicts for the two businesses to be regulated under two different and separate licenses.

The X8 Project recognized that the best position in the long run for our business is to have a license in both areas. After all, our project grew up from intense focus on technological development. Therefore, we will move forward with our company X8 AG and we will apply for the Fintech license in Switzerland with this company in the very near future now. Current waiting times for the Fintech license in Switzerland are quite long and the license has just been introduced by FINMA, but that will not deter us from obtaining it as we feel that we are totally capable of meeting all the requirements for it.

Overall this will put us into a position in the future, where we will be able to run an exchange type business and at the same time cater to our clients with the unique ability of asset management services that we can offer. This combination is a serious one and will enable the necessary foundation for the long-term development of the project.

 

SUMMARY

The project is focused on establishing an ultra-strong footing in Switzerland with all the regulatory requirements to be able to run a traditional exchange, crypto exchange and extensive international asset management operations all in one cohesive, yet separate, transparent and fully regulated package.

At the same time this means that X8 AG will become the fintech company, which will also hold all the IP (Intellectual Property). A fintech company needs to demonstrate the ability to develop and operate a specific technical IP, which is why we are currently undergoing a process of the transferring of the existing Intellectual Property to this company and also preparing the groundwork for all the future Intellectual Property to be developed and owned by X8 AG. We will inform our supporters and the community about the developments concerning the IP transfer and the fintech license.

After all of this the project does not rely and does not use the ioNectar Financial Limited company in the UK anymore. We are considering liquidating or closing this company down in the near future as it does not facilitate us with what we need to do to run our fintech and asset management business in Switzerland in any way. Currently the team is taking care of administrative aspects of this situation to be able to come to a final decision about the UK company in the very near future, of which you will also be informed on our channels.

The team looks forward to accomplishing these goals on the corporate side and to become one of the strongest crypto and traditional projects for financial services in the world.

 

 

Gregor Kozelj
Gregor

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