The ICOx Innovations (OTCQB: ICOX) technology team is helping to change the retail, banking, and marketing landscapes by building next-generation technology through the use of 'branded digital currencies' for Fortune 5000 companies and organizations
MIAMI BEACH, FL / ACCESSWIRE / July 9, 2019 / First JP Morgan. Now Facebook and its Libra Coin. There is a massive shift in the world of cryptocurrency, and to truly appreciate the movement, you'll need to forget everything you know about cryptocurrency. From there, you can skip past the inaccurate stereotypes and volumes of targeted blogs that have disguised the real value of what will become one of the most prolific generational shifts in our lifetime. Moreover, by understanding the enormous utility that digital currency has to offer, beyond the likes of Bitcoin, users can learn how innovative companies, like ICOx Innovations (OTCQB: ICOX), are helping to change the retail, banking, and marketing landscapes by building next-generation technology through the use of "branded digital currencies" for Fortune 5000 companies and organizations. And, by already partnering with three significant projects, ICOx is emerging as an influential player in an industry that is expected to grow exponentially in the years to come.
The term "branded digital currency" may be new to some, but its importance is not going unnoticed by companies, both large and small, that understand the value of taking a proactive approach to filling the significant gaps being exposed within the infrastructure of everything financial. In fact, global brands like Facebook, Starbucks, and Samsung are already well-entrenched in the digital movement, providing a template for others to follow by building and implementing their own branded currencies into their business models. And, based on their actions, it leaves little doubt that despite their multi-billion dollar market caps, that they recognize the importance of utilizing both technology and innovation to keep their leadership positions intact. Further, they are turning to branded digital currency to not only offer a more efficient payment process and glean insight from customer data, but to motivate brand loyalty and attract a new generation of customers that are ushering in the change toward a virtual-market environment.
Moreover, it's not a matter of "the markets are changing", it's a matter of "how fast" it will happen. And, with ICOx Innovations already inking deals with several significant organizations serving millions of online users, they are quickly positioning themselves to become a leader in the developing industry to design, build, and implement branded digital currency platforms for companies focused on targeting the fast-emerging virtual marketplace. Here's why...
The Transformation To Branded Digital Currencies Is Well Underway
Okay, let your memory return about everything crypto. But, now, focus on the real potential of the assets and not on the feast or famine investment headlines that highlight most of the known coins, including Bitcoin (BTC), Ripple (XRP), and Litecoin (LTC). Instead, pay attention to the long-term value that each of those coins has provided by creating a road-map for others to follow. And, despite their head start in the virtual markets and the fundamental belief that they were going to have a legitimate economic function, many are beginning to feel that branded digital currency will likely end their hypothetical hopes and position each as little more than a speculative investment with less commercial value than initially thought. Moreover, although several of the top coins may earn a limited role as a tool of commerce, even their proponents are beginning to recognize how quickly companies will respond to protect their brands, and that the power to develop their own digital assets through companies like ICOx Innovations will ultimately limit their use in the global marketplace.
It's probably a bit presumptuous to assume that virtual coins like Bitcoin and Ripple will become obsolete. However, the technology and alternative variations being developed by ICOx Innovations (ICOX) are showing that their contribution to digital commerce may not be as high as initially thought. Moreover, with Barclays putting out a note saying that the planned Facebook's Libra P2P stablecoin could generate more than $19 billion in revenue to the company by the year 2021, others are quickly joining the move to develop and integrate the technology into their own business models. And, that's good news for ICOx and potentially bad news for traditional cryptocurrency coins.
To date, at least three companies, including, KODAKOne, Freedom Coin, and Cathio, have already developed branded digital currency projects with ICOx, and others are expected to follow. In a competitive environment, they don't really have a choice, especially for the companies that want to remain relevant as markets shift toward using regulated, blockchain driven, digital currencies. And, while the cost may be a factor for some, the transition won't be all that optional based on historical precedent that shows that companies that resist market changes often find their market share, loyalty, and relevance disappear quickly.
The good news, however, is that ICOx is not pricing emerging companies out of the branded digital currency market. In fact, ICOx can design and implement a comprehensive branded digital currency platform that will allow even the smallest of companies to implement their own digital branded currency strategies that can ultimately increase their position in the marketplace. Hence, as ICOx positions itself to benefit from eventual mass adoption of branded digital currency, the long-term results of their vision may lead to exponential company growth as the technology and demand of their products make it to the mainstream business model.
ICOx Innovations: Technical Work With A Simple Vision
Although the process behind the build is exceptionally technical, ICOx has a straightforward mission: to build-out and support the operating companies and key providers that will usher in the next wave of regulated alternative currencies. And by doing so, ICOx can help to expedite the anticipated mass adoption of branded digital currencies. In fact, the mission is in progress, and the pace at ICOx is gaining steam by having partnered with major companies including KODAKOne, Freedomcoin, and Cathio that are counting on ICOx to build and manage parts of its branded digital currency programs by utilizing their innovative strategies and expertise to launch comprehensive branded digital platforms.
Moreover, beyond the customer base that is already working with ICOx, the company is targeting the global eCommerce market that can bring with it substantial revenue opportunity by leveraging off news that companies are already planning to launch their own version of "stablecoins" and branded digital assets in the coming quarters. That move is well documented by numerous reports that point to JP Morgan and Rakuten as examples of companies that are in-process of incorporating branded digital currencies into their business models to integrate proprietary functions or to use as tools for payment processing. Further, ICOx is quick to include that the use of branded digital currency can be a highly-valued asset that offers benefits well beyond the incentives provided by typical loyalty programs. And, while ICOx is already proving that they can deliver valued products and services, their objective as a publicly traded company is to make money and increase shareholder value.
To that end, the business model is attractive. The general terms call for ICOx to receive a substantial upfront payment to develop and implement the programs and then benefit from recurring transaction revenues related to equity, software development, and licensing fees. The margins are healthy, typically hitting 25% on the upfront cost and higher on the residual portions of the revenue streams. Moreover, ICOx, in some cases, can earn an equity stake of up to 33% in its partner programs, that can ultimately deliver significant returns as the markets mature.
ICOx Innovations Intends To Mint Currency for Brands
Listed on both the TSXV and the OTCQB, ICOx has to answer to both its customers and its shareholders. And, accountability is what can drive performance. The company is forthcoming about its mission to remain a fully regulated, compliant, and transparent company. And, that commitment to evolving with a dynamic regulatory environment will be a strength as the industry matures. But, more than just playing by the strict rules, ICOx is pricing their products and services to make money.
From that perspective, ICOx is targeting business from both established and emerging brands to create new branded blockchain economies powered by their own branded digital currencies. From each joint venture, ICOx's business model expect to generate up to $2 million product development fees, can participate as an equity partner by receiving up to 33% equity in each joint venture, and benefit from recurring transaction-based fees, referral fees, and ongoing consulting fees. The margins from the large product development fees are expected to be around 25%, with a larger focus to grow long term transaction-based fees, referral fees and ongoing consulting fees plus the projected and expected valuation growth in the equity stake ICOx holds in these joint ventures. With thousands of potential clients needing to ultimately respond to the changes taking place within the digital marketplace, ICOx is looking to seize upon an enormous market opportunity that is still considered to be in its infancy.
Moreover, the growing interest in "stablecoins" will likely accelerate the growth at ICOx, by positioning the company to build branded digital assets that can lead its client to integrate themselves into the branded digital market quickly. In simplest terms, these stablecoins, similar to what JP Morgan and Facebook are said to be building, is a branded digital currency that has a fixed exchange rate to another stable asset, like the U.S. Dollar. Once reliably paired these stablecoins can allow for practical daily use for everyday payments, provide scalability, and offer price stability to its branded partner. Moreover, the pairing of the two can assist in broader consumer adoption, simplicity, and more efficient integration of the branded digital asset to participate in global market opportunities. And, ICOx is in a position to facilitate the entire project.
Furthermore, with interest in stablecoins growing, ICOx can show use cases that demonstrate their importance. Beyond JP Morgan's interest, IBM's blockchain is already live, and major banks in South Korea and Brazil are reported to be developing their own coins. But, many believe that's just the beginning. Likely, hundreds of companies and financial institutions are already evaluating the possibility to turn global payment networks into individual economies, with each branded currency integrating its own loyalty program, providing specific economic incentives, and taking advantage of transaction trust through the use of blockchain technology.
It's the sheer numbers that make ICOx an attractive emerging provider. And, because the company is mandated to transparency through regulatory filings, the more clients know, the more likely it may become for clients to choose ICOx to captain the build process.
Respecting Regulatory Oversight With Compliant Processes
With an industry on the verge of exploding into a multi-billion dollar sector, it's more important than ever for client companies to streamline their partnering processes and identify with only the most compliant of companies. And, this issue plays to ICOx's strengths.
ICOx Innovations has advocated the importance of oversight and the need for regulations to protect the user, the issuer, and the investor in an industry that promotes itself as "unregulated but trustworthy." However, while most companies may play by the rules, the industry has also been plagued by numerous complaints of fraud and misrepresentation. But not all issuers and developers are created equally, which may make ICOx a popular choice amongst potential clients.
As their tagline implies, ICOx is a fully compliant developer that makes no compromises in the process. Furthermore, as a publicly traded company, ICOx is required to be transparent about the business operations and clients with whom they work. That transparency, especially about its financial strength and management of the company, will be a benefit against its competitors, many of whom have an inherent buyer beware risk profile. ICOx's commitment to regulatory compliance is reflected in the composition of its Board, which includes a former Vice Chair of JP Morgan Chase and a former Director of the US Mint. Moreover, as ICOx builds its status as a favored provider of branded blockchain economies and branded digital currency services, their stature from being a transparent and compliant business will serve them well compared to their relatively unknown competitors.
Capital Overview Of ICOx Innovations
From its most recent filing, the company has just over 23 million shares of stock outstanding and a market cap of roughly $6 million. Average trading volume is respectable for an emerging company with more than 50,000 shares trading hands on an average day in the last 30 days. Moreover, the company's balance sheet showed assets of more than $3 million as of March 31, 2019 with roughly $1,000,000 in current liabilities.
ICOx is led by an experienced management team that is headed by Cameron Chell, who is the Chairman and co-Founder. Complimenting Mr. Chell is an experienced President, COO, CFO, and Director of Technology. The team is further strengthened by an Advisory Board comprised of industry experts that have decades worth of combined experience in the areas of financial investment, blockchain technology, and emerging company development.
Insider ownership of the company stands at roughly 18%. And, as an emerging company in a fast-growing industry, ICOx noted potential new client-partners in its most recent filing. Thus, if the deals are consummated, ICOx may be in a near-term position to generate significant revenue in the coming quarters.
ICOx Innovations, An Early Comparable To Coinbase?
There is little argument that ICOx is part of an industry that is on the verge of exponential growth. And, as ICOx Innovations continues to partner with a wide range of respected companies, their reputation will also grow as a trusted provider that can build and implement branded digital currency platforms.
And, with ICOx emerging as a respected player in the industry, investors can look to Coinbase and Galaxy Digital as market comparables. Further, while the market caps are substantially different, the path taken is similar.
Coinbase, which was founded less than a decade ago, has amassed a digital currency and wallet platform that is valued at more than $8 billion, and has become one of the most popular and trusted crypto related companies in the world. For its part, Galaxy Digital has quickly developed into a diversified merchant bank dedicated to the digital assets and blockchain technology industry. Similar to the team at ICOx, Galaxy has a multi-disciplined management group that has extensive experience in the capital markets, blockchain technology, and product portfolio management. It enjoys its most recent valuation, that exceeds $158 million.
Placing ICOX Innovations side by side to both Coinbase and Galaxy Digital may seem assumptive. But, the takeaway is that just as Coinbase And Galaxy Digital saw their market values rise quickly, the same can happen for ICOx. Admittedly, although ICOx is not a Coinbase just yet, it's not a stretch to say that they are well-positioned to take advantage of an economic revolution that may ultimately deliver massive rewards that, in turn, can generate exponential market cap increases.
And, as demonstrated by both Coinbase and Galaxy Digital, growing into a valuation from zero to more than $8 billion doesn't take long. But, even if ICOx only meets up with Galaxy Digital in a valuation comparison in the next few years, it would still amount to more than a 2700% increase from current values. Needless to say, that would be a welcome accomplishment to its shareholder base, and probably worthy of their own ICOx branded coin.
Perceptive Advisors, LLC
Miami Beach, Florida
SOURCE: ICOx Innovations
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