English Blog - coinIX

FINEXITY, a portfolio company of coinIX, Begins Trading on Munich Stock Exchange’s m:access Segment

Mahsa Doorfard — Mon, 08 Sep 2025 11:42:10 +0000

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As of September 1, 2025, a total of 70,541 shares were subscribed in the FINEXITY Group’s current share issuance. Of these, 6,885 shares were issued at a subscription price of EUR 42.50 and 63,656 shares at a subscription price of EUR 29.50, resulting in total subscription proceeds of EUR 2.17 million. The majority of the placement was in the EUR 29.50 tranche, which carries a 24- month hard lock-up period starting August 30, 2025 — underscoring investors’ strong long-term confidence in the FINEXITY Group.

A significant portion of the volume was taken up by existing shareholders, complemented by commitments from selected strategic investors. The private placement remains ongoing; upon completion, the subscribed shares will be registered with the commercial register. These financings strengthen FINEXITY’s equity base and provide the foundation for the next phase of growth, particularly with regard to inorganic expansion initiatives.

The admission to trading on m:access represents an important milestone for the FINEXITY Group and coinIX is glad to be one of the earliest supporters of FINEXITY. The listing enhances transparency, expands visibility in the capital markets, and underscores FINEXITY’s ambition to further solidify its position as a leading trading and settlement platform for digital assets.

“Private markets represent one of the fastest-growing areas of global capital markets. Leveraging our scalable trading infrastructure, strategic partnerships, and international footprint, we are uniquely positioned to play a leading role in shaping this market,” said Paul Huelsmann, CEO of the FINEXITY Group. “Our stock market listing reflects our commitment to driving growth in line with this dynamic segment.”

Private Markets are projected to reach as much as USD 15 trillion globally, while the tokenized securities market is expected to approach USD 11 trillion by 2030. FINEXITY connects issuers and regulated trading partners via its proprietary OTC trading infrastructure, enabling both primary placements and secondary market trading of tokenized securities. Today, more than 250 securities from over 50 issuers are already listed, spanning asset classes such as private equity, private credit, real estate, infrastructure, renewables, and collectibles.

Michael Ost, Deputy CEO of the FINEXITY Group, added: “As management, we are fully committed — both operationally and financially — with all shares held directly or through controlled entities subject to a 30-month lock-up until March 4, 2028. In addition, our strategic investors, business angels, and venture capital partners have agreed to lock-up periods of up to 24 months on the majority of their holdings until August 4, 2027. This clear alignment demonstrates our joint confidence in FINEXITY’s business model and longterm growth trajectory.” The listing was advised by Consortiello GmbH as a listing agent, with legal counsel provided by Heuking Kühn Lüer Wojtek and mwb fairtrade Wertpapierhandelsbank AG acting as the Capital Markets Expert.

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About coinIX Capital GmbH

Since 2017, coinIX Capital GmbH, headquartered in Hamburg, has been at the forefront of analyzing blockchain projects and cryptocurrencies, facilitating investments in this dynamic sector. Comprising specialists with extensive experience in asset management, venture capital, and cutting-edge technology analysis, the coinIX team manages a portfolio boasting over 20 investments in blockchain startups alongside crypto assets. Shares of coinIX GmbH & Co. KGaA are listed on the free market of the Düsseldorf Stock Exchange and are also traded on the Berlin and Munich stock exchanges.

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About coinIX COINVEST SCI1

Launched in June 2022, coinIX COINVEST SCI1 is an open domestic special AIF under the KAGB. As a sub-portfolio of coinIX COINVEST Investment Stock Corporation with variable capital, its assets are managed by coinIX Capital GmbH, acting as a registered capital management company. Available for subscription by professional or semi-professional investors, the fund has the flexibility to invest up to 100% of its capital in crypto assets, aiming for a diversified portfolio of digital assets actively managed through ongoing selection processes. Additional income streams are generated through staking and other blockchain-native mechanisms. With the ISIN DE000A408Q55, subscriptions to the fund are only available directly through the investment company, with private investor acquisition prohibited.

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Smart Diversification: Why Investors Should Take a Broader Approach to the Crypto Market

Mahsa Doorfard — Mon, 04 Aug 2025 08:57:19 +0000

Hamburg, 4 August 2025 – Successful investing in digital assets today requires more than just holding Bitcoin. The key lies in smart diversification across cryptocurrencies, blockchain-based technologies, and regulated investment vehicles. The fast-moving nature of the crypto market shows that long-term success depends on more than focusing on a single asset. A strategically composed mix of digital currencies, DeFi tokens, and blockchain-based projects — each with different technologies and use cases — is essential.

Bitcoin remains a foundational asset, reaching record highs of around $120,000 and widely seen as “digital gold” due to its liquidity and growing institutional acceptance. “But relying solely on Bitcoin falls short,” says Moritz Schildt, CEO of coinIX. “Ethereum has emerged as the second core pillar — serving as a smart contract platform, innovation driver, and basis for a broad range of applications, including tokenization and decentralized finance. The recent approval of Ethereum ETFs and ongoing tech upgrades have further enhanced its appeal to professional investors.”

coinIX identifies and invests in promising opportunities across the crypto and blockchain landscape. Through its regulated investment vehicle, the coinIX COINVEST SCI1 Fund (WKN: A2LQ1G / ISIN: DE000A2LQ1G5), investors can gain exposure to a diversified and actively managed portfolio of digital assets. Beyond Bitcoin and Ethereum, specialized altcoins like Solana, Cardano, and Polygon are gaining traction. These projects address key issues such as scalability, energy efficiency, and real-world application — particularly in decentralized finance (DeFi) and non-fungible tokens (NFTs). DeFi protocols like Chainlink, Uniswap, and Aave are transforming traditional financial services by enabling lending, trading, and liquidity provision without intermediaries.

“Ethereum, in particular, has laid the groundwork for a decentralized financial system and remains one of the most innovative platforms for digital applications,”Schildt adds. “As a firm, we are fully committed to the Ethereum ecosystem because we believe it will play a central role in the future digital infrastructure.” Another key driver of market growth is institutional demand. Recent studies show that 86% of institutional investors are already engaged or planning to invest in crypto assets. Over 60% prefer regulated vehicles such as ETFs or ETPs to manage their exposure.“Balanced portfolios — combining Bitcoin, Ethereum, selected altcoins, and DeFi tokens — tend to generate better risk-adjusted returns than single-asset strategies,”notes Schildt. Stablecoins, as digital equivalents of traditional currencies, add liquidity and flexibility, supporting cash management and enabling more agile responses in volatile markets.

Meanwhile, regulatory clarity is on the rise. The EU’s MiCA framework is setting legal standards and boosting institutional confidence in digital assets. “This regulatory progress enables investors to integrate crypto assets into their portfolios more securely and to benefit from blockchain innovation,” Schildt concludes. “Smart diversification is the future of crypto investing. Those who combine established cryptocurrencies, emerging blockchain technologies, and regulated investment structures are well-positioned to capture opportunity, manage risk, and achieve sustainable returns.”

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About coinIX Capital GmbH

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About coinIX COINVEST SCI1

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Crypto Fund “coinIX COINVEST SCI1 Funds”: V-Bank Enables Settlement of Tokenized Fund Shares

Mahsa Doorfard — Mon, 21 Jul 2025 07:41:01 +0000

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coinIX Team is expanding!

Mahsa Doorfard — Thu, 17 Jul 2025 09:52:04 +0000

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DePIN Leaders from coinIX Portfolio Among the Top 25 in the world!

Mahsa Doorfard — Tue, 24 Jun 2025 08:54:00 +0000

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coinIX and DePIN

Decentralized Physical Infrastructure Networks (DePIN) are a key component of coinIX’s investment strategy and we are glad to see 3 of our Portfolio companies among the top 25 DePIN leaders in the world. Kai Wawrzinek from Impossible cloud Network, Leonard Dorlöchter from peaq and Alireza Ghods from Natix Network. coinIX invested in NATIX in September 2020, supporting the world’s largest AI camera network, which enables real-world data collection. In April 2020, we also invested in peaq, a machine coordination network designed to ensure interoperability for AI-powered automation. We also participated in the innovative Impossible Cloud Network through a token sale in November 2024.

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Impossible Cloud Network

The Impossible Cloud Network is a decentralized cloud infrastructure that stores data using a distributed architecture. Users can easily integrate Impossible Cloud into existing workflows and applications, ensuring seamless and uninterrupted data management. Unlike centralized cloud providers, Impossible Cloud enhances the security of backups while simultaneously improving performance. The decentralized architecture eliminates single points of failure, ensuring higher reliability. The result is optimized availability (fewer downtimes) and increased resilience (faster recovery times). Additionally, Impossible Cloud is fully compliant with GDPR, ensuring that user data is processed in accordance with strict European data protection regulations. All data is geographically restricted to Europe and stored in state-of-the-art, ISO-certified data centers that meet the highest standards for security and redundancy, providing robust protection for sensitive information.

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peaq

The PEAQ project is a platform that uses blockchain technology to improve the so-called “Internet of Things” (IoT). It focuses on connecting machines, devices, and cars so they can work together safely and efficiently, without relying on large centralized companies. The PEAQ token serves as the currency within the system. It can be used to pay for services or to earn money by contributing one’s own machines or data to the network. The PEAQ platform has already connected over two million devices to the network.

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Natix Network

NATIX GmbH is developing a platform on which city surveillance cameras automatically detect relevant events with the help of artificial intelligence and exchange information with other cameras via a blockchain-based communication interface developed by NATIX itself. Cameras from different manufacturers and operators can also be integrated in order to better control traffic flows or to be able to react faster and more specifically in the event of an accident. The solutions developed by NATIX are particularly relevant for operators of industrial plants and for the development of Smart Cities.

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Conclusion

As DePIN rapidly grows, community recognition fuels momentum. By supporting those leading the charge, we foster collaboration, expand visibility, and inspire future builders. With its early and strategic investments, coinIX is playing a key role in shaping the future of DePIN — helping build the foundation for a decentralized, intelligent, and autonomous machine economy.

Click here to access the full list of the top 25 DePIN Leaders.

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About coinIX Capital GmbH

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About coinIX COINVEST SCI1

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The Importance of Blockchain Network Incentive Mechanisms

Mahsa Doorfard — Wed, 28 May 2025 08:36:27 +0000

Effective incentive mechanisms are therefore an essential part of any blockchain network to avoid such issues and mitigate the possible risks. As the security of any blockchain depends heavily on the rate of decentralization achieved through a large number of system entities, incentives are increasingly important.

These incentives must be structured in a way, that makes it more profitable for the entities to act in favor of the network rather than to behave maliciously. It is also very important to evaluate incentives for all stakeholders within the blockchain system, in order to foster motivation and cooperation toward the same goal.

Additionally, the adoption of incentives in blockchain systems has multiple advantages in terms of execution through smart contracts, eliminating many security and privacy risks that would exist under a centralized party (e.g. Bank institutions).

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What Drives Participation? A Look at Blockchain Incentive Models

Blockchain-based incentives can be categorized by goal, distinguishing between participation and cooperation, and by type, including monetary, reputation-based, gamified, and hybrid incentives. Monetary incentives regulate behavior from an economic perspective, encouraging higher cooperation through financial rewards and discouraging attacks by increasing penalty costs for malicious conduct.

Furthermore, entities gain utility by participating, as they receive financial rewards. Credit-based and reputation-based incentives within the non-monetary category build trust among several system entities and both mechanisms are intended to help avoid collusion between untrusted individuals. Gamified incentives drive desired behavior by leveraging entities’ psychological tendencies and creating engaging emotional experiences through task completion within the system.

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Participation as Leverage: The Economics of Blockchain Expansion

The relevance of participation within these incentive goals has already been noted, but it is important to remember that participants act rationally and are profit-driven and therefore could pose a threat at any time. On the other hand cooperation focuses on two main behaviors, which are the strict execution of required system protocols and the discouragement of attack attempts. Collaboration helps to identify malicious behavior by profit-driven participants which could cause short- or long-term risks and harm the profits of other system participants.

Since decentralization depends on reaching a critical number of participants, platform growth is crucial. Reaching this is in turn essential for users to leverage network effects. There is high potential for investors to join these platforms at an early stage, yet the “chicken and egg” problem in two-sided markets arises because incentives are crucial for attracting both buyers and sellers.

Providing an incentive for early platform adopters is thus necessary and highly valuable for future development to avoid expensive and slow platform growth. Blockchain technology has managed to avoid these problems through financial token incentives for higher and faster participation among early-stage investors, creating economic drivers that encourage actions such as staking for network stability or participating in governance.

Issuing entities often promote token sales by highlighting the prospect of a future increase in token value. If the token supply is limited (e.g. BTC), this increased demand leads to a higher value of the tokens, once the total token supply is distributed. This is only one example, why tokens can be seen as an investment vehicle, giving early adopters compensation and thus serving as an incentive. Token value upside has a positive network effect and allows early investors to partake in financial growth, which in turn accelerates platform adoption.

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The Trust Gap: Why Incentive Design Must Go Beyond Whitepapers

While incentives are highly relevant, it is equally important to address existing challenges. Early-stage token projects often tend to submit limited or unreliable information about the actual utility of the underlying token before the ICO. The information provided often appears in a simple whitepaper that is not approved by third parties and multiple disclaimers and waivers are frequently added, thereby reducing accountability of the final token usability.

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About coinIX GmbH & Co. KGaA

Founded in 2017 and based in Hamburg, coinIX GmbH & Co. KGaA specializes in blockchain investments and digital assets. The firm’s team includes experts in asset management, venture capital, and emerging technologies.

coinIX invests in cryptocurrencies, token projects, and blockchain startups within decentralized markets. The company’s shares are publicly traded on the Düsseldorf, Berlin, and Munich stock exchanges (WKN: A2LQ1G | ISIN: DE000A2LQ1G5 | Ticker: XCX).\nMore information: www.coinix.capital

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About coinIX COINVEST SCI1

The coinIX COINVEST SCI1 is a German special AIF (Alternative Investment Fund) launched in June 2022, managed by coinIX Capital GmbH, a registered capital management firm. The fund is available exclusively to professional and semi-professional investors and can invest up to 100% of its capital in crypto assets.

It actively manages a diversified digital asset portfolio, generating additional income through staking and blockchain-native financial strategies. The fund’s ISIN is DE000A408Q55, and investments can only be made directly through coinIX. It is not available to private investors. More details: coinIX COINVEST SCI1.

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Author: Rafael Ruiz Cramme

Sources:

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Caillaud, B., & Jullien, B. (2003). Chicken & Egg: Competition among Intermediation Service Providers. The RAND Journal of Economics, 34(2), 309–328. JSTOR. https://doi.org/10.2307/1593720

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Dixon, C. (2017). Crypto Tokens: A Breakthrough in Open Network Design. https://medium.com/@cdixon/crypto-tokens-a-breakthrough-in-open-network-design-e600975be2ef

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Evans, D. (2014). Economic Aspects of Bitcoin and Other Decentralized Public-Ledger Currency Platforms. University of Chicago Coase- Sandor Institute for Law & Economics, Research Paper №685. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2424516

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Han, R., Yan, Z., Liang, X., & Yang, L. T. (2023). How Can Incentive Mechanisms and Blockchain Benefit with Each Other? A Survey. ACM Computing Surveys, 55(7), 1–38. https://doi.org/10.1145/3539604

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Samuels, S. (2024). The Fundamental Principles of Utility Tokens in the Blockchain Ecosystem. https://www.ccn.com/fundamental-principles-utility-tokens-blockchain-ecosystem/

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Sehra, A., & Gomes, P. (2017). Economics of Initial Coin Offerings. https://www.researchgate.net/profile/Avtar-Sehra/publication/351626829_Economics_of_Initial_Coin_Offerings/links/60a25a0045851528ebedaf9c/Economics-of-Initial-Coin-Offerings.pdf

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Sompolinsky, Y., & Zohar, A. (2018). Bitcoin’s underlying incentives. Communications of the ACM, 61(3), 46–53. https://doi.org/10.1145/3152481

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Wesley, D. (2018). Utility Tokens vs Security Tokens: What the Future of ICOs Will Look Like. https://hackernoon.com/utility-tokens-vs-security-tokens-what-the-future-of-icos-will-look-like-faa9017e8aa8

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Ethereum’s Shift to Proof-of-Stake

Mahsa Doorfard — Fri, 16 May 2025 10:11:44 +0000

{“main-title”:{“component”:”hc_title”,”id”:”main-title”,”title”:””,”subtitle”:”The Merge explained”,”title_content”:{“component”:”hc_title_image”,”id”:”title-image”,”image”:”https://coinix.capital/wp-content/uploads/2025/03/Website-Header-1-1024×307.png|600|2000|100008887″,”full_screen”:false,”full_screen_height”:””,”parallax”:false,”bleed”:””,”ken_burn”:””,”overlay”:””,”breadcrumbs”:false,”white”:true}},”section_5ZtkF”:{“component”:”hc_section”,”id”:”section_5ZtkF”,”section_width”:””,”animation”:””,”animation_time”:””,”timeline_animation”:””,”timeline_delay”:””,”timeline_order”:””,”vertical_row”:””,”box_middle”:””,”css_classes”:””,”custom_css_classes”:””,”custom_css_styles”:””,”section_content”:[{“component”:”hc_column”,”id”:”column_vtfQF”,”column_width”:”col-md-12″,”animation”:””,”animation_time”:””,”timeline_animation”:””,”timeline_delay”:””,”timeline_order”:””,”css_classes”:””,”custom_css_classes”:””,”custom_css_styles”:””,”main_content”:[{“component”:”hc_wp_editor”,”id”:”Xhugf”,”css_classes”:””,”custom_css_classes”:””,”custom_css_styles”:””,”editor_content”:”Hamburg, 16 May 2025 – Ethereum, the largest Proof-of-Stake (PoS) layer-1 blockchain platform, underwent a transformative upgrade in 2022, shifting from energy-intensive Proof-of-Work (PoW) to the more efficient PoS consensus mechanism. This pivotal change, known as “The Merge,” tackled Ethereum’s scalability challenges while enhancing its security and decentralization. Here’s a deep dive into how PoS powers Ethereum and why it matters. Please note that the information in this article reflects the state of Ethereum prior to the Pectra-Upgrade.\n

The Merge: A Paradigm Shift

On September 15, 2022, Ethereum executed the Paris upgrade, dubbed “The Merge”, marking its leap to PoS. The goal? To solve the blockchain trilemma, where scalability (handling more transactions), security (protecting the network), and decentralization (spreading control) often trade blows. Proof-of-Work (PoW), Ethereum’s original mechanism, relied on miners solving computational puzzles to validate transactions, consuming vast energy and struggling to scale. PoS flips this model, replacing miners with validators who stake their ETH to secure the network, making it more sustainable and predictable.

Ethereum’s PoS splits its operations into two layers: the execution layer, which handles transaction processing and smart contract execution, and the consensus layer, which ensures all nodes agree on the blockchain’s state. Before The Merge, the execution layer ran on PoW, with miners and validators splitting rewards. Post-Merge, validators take the full reward, streamlining incentives and boosting efficiency. Unlike PoW’s variable block times, PoS uses a rigid schedule: blocks are produced every 12 seconds in slots, with 32 slots forming an epoch (about 6.4 minutes). This predictability allows validators and users to forecast block production, a stark contrast to PoW’s volatility.

The illustration below visualizes recent epochs along with their respective slots. Green slots indicate successfully proposed blocks, while orange slots represent scheduled but unprocessed slots. The bar beneath each epoch illustrates the participation rate during that epoch. The y-axis denotes the epoch number, whereas the x-axis represents the slot number, with each epoch comprising a total of 32 slots.

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Validators: Powering Ethereum’s Trust Engine

In PoS, validators are the heartbeat of the network. To become a validator, a participant must stake at least 32 ETH, locking it as collateral to ensure honest behavior. Validators propose and attest to blocks, earning rewards for their work. But with great power comes great responsibility: malicious actions, like proposing invalid blocks or going offline, trigger slashing, where a portion of the validator’s stake is burned. This penalty discourages attacks, as the financial cost is steep.

The PoS system tracks validators meticulously, logging their stakes, votes, and performance. This transparency strengthens trust and security, as anyone can audit validator activity. Unlike PoW, where miners with the most computing power dominated, PoS levels the playing field — your stake, not your hardware, determines your influence. This shift enhances decentralization, as more participants can join without investing in energy-guzzling mining rigs.

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Ethereum’s PoS Power: Efficiency Meets Security

The switch to PoS unlocks a trifecta of benefits: energy efficiency, scalability, and robust security. PoW’s massive energy consumption — think small-country levels — made it an environmental lightning rod. PoS slashes Ethereum’s energy use by over 99,988%, aligning with global sustainability goals and attracting eco-conscious developers and investors. To highlight the impact of this shift in consensus mechanisms, the following illustration compares Ethereum’s PoS energy usage to other major consumers. In particular, the contrast with Bitcoin’s PoW (149 TWh/yr) and Ethereum’s former PoW system (21 TWh/yr) underscores the scale of energy savings.

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Scalability also gets a boost: PoS handles transactions faster and cheaper, paving the way for Ethereum to support the booming demand for decentralized apps (dApps) and decentralized finance (DeFi) platforms.

Security is fortified through slashing and high staking costs, which deter attacks. An attacker would need to control 51% of staked ETH — a prohibitively expensive feat, especially with Ethereum’s market cap. Plus, PoS’s predictable block production reduces the risk of chain reorganizations, where miners could rewrite recent history. These upgrades make Ethereum a fortress: decentralized, resilient, and ready for mass adoption.

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Distinguishing Between Direct and Indirect Staking

There are two main methods of staking ETH, which are distinguished into direct and indirect. Direct staking involves validators depositing at least 32 ETH and running their own node, while indirect staking involves those who participate in staking pools through a third-party service provider because they do not meet the minimum requirement of 32 ETH. Although direct staking offers lower or even no fees and allows validators to receive staking rewards directly, it requires a higher level of technological knowledge and implies greater responsibility. With the total ETH amount per validator being limited and the probability of attesting, proposing and voting for blocks being randomly, entities or persons operating multiple active validators maximize their probability of being selected and therefore create a competitive edge.

Following the final transition to PoS, a clear upward trend in staked ETH emerged. While Ethereum’s total supply has remained stable at approximately 120 million since The Merge, the amount of staked ETH by validators has grown significantly, rising from 14.6 million ETH (12.11% of total supply) in September 2022 to 33.3 million ETH (27.7% of total supply) in June 2024. This trend reflects increasing network stability, trust and security, as more participants commit ETH to staking. Additionally, it highlights the effectiveness of Ethereum’s incentive mechanisms in driving validator participation and reinforcing network resilience.

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Potential Risk of Centralization

A potential key problem with of PoS is the higher risk of centralization, with a small number of entities having the potential to control most of the staked ETH amount. In such a case, a small group of validators could obtain excessive powers and influence over the network and pose a monopoly threat in terms of crypto asset whales, exchanges, and pools for staking. Besides, concerns have been raised about whether PoS could have a higher security in terms of vulnerability to specific types of attack that could enable malicious entities to gain control over the network. Existing optimization strategies mitigate this potential risk, making such scenarios increasingly difficult. In a well-functioning network with effective slashing mechanisms, any attack attempt would trigger a negative feedback loop for the attacker.

Malicious behavior results in a 33% reduction of staked ETH due to slashing penalties. To launch a new attack, additional ETH must be acquired, repeating the costly cycle. This significantly lowers the risk of centralization. The Dune Dashboard below illustrates the percentage distribution of all staking providers within the Ethereum network. As of February 17, 2025, the three largest entities are Lido (27.7%), unidentified independent stakers (19.9%), and Coinbase (8.4%). Unidentified independent stakers in this context refer to the aggregated amount of staked ETH by validators that are not associated with major centralized exchanges (CEXs) or staking pools. While this distribution does not pose an immediate centralization risk, it highlights the previously mentioned concentration of staking power among a few dominant participants.

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Building Tomorrow: Ethereum’s PoS Promise

Ethereum’s PoS transformation isn’t just a technical upgrade — it’s a bold step toward a scalable, sustainable, and secure blockchain future. By replacing miners with validators, slashing energy use, and enhancing network predictability, Ethereum is poised to power the next wave of Web3 innovation. As Ethereum continues to evolve, its PoS framework stands as a blueprint for how blockchains can balance ambition with responsibility.

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About coinIX GmbH & Co. KGaA

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About coinIX COINVEST SCI1

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Author: Rafael Ruiz Cramme

Sources:

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Asif, R., & Hassan, S. R. (2023). Shaping the future of Ethereum: Exploring energy consumption in Proof-of-Work and Proof-of-Stake consensus. Frontiers in Blockchain, 6, 1151724. https://doi.org/10.3389/fbloc.2023.1151724

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Dune. (n.d.-a). ETH stakers: Ordered by amount staked. https://dune.com/queries/2394100/3928083

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Edgington, B. (2023). Part 2.3: Technical Overview Consensus. https://eth2book.info/capella/part2/consensus/overview/

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Ethereum Foundation. (n.d.-a). Intro to Ethereum. https://ethereum.org/en/developers/docs/intro-to-ethereum/

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Ethereum Foundation. (n.d.-c). Ethereum’s energy expenditure. https://ethereum.org/en/energy-consumption/

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Grandjean, D., Heimbach, L., & Wattenhofer, R. (2023). Ethereum Proof-of-Stake Consensus Layer: Participation and Decentralization (Version 2). arXiv. https://doi.org/10.48550/ARXIV.2306.10777

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Natale, U. (2022). Analyzing Ethereum Cryptoeconomics: The validator’s perspective. https://docs.google.com/document/d/1r640UQOm2z-Q9nsJzqBq3BVgCtTL1_Yc7WnPp4jEBgk/edit?tab=t.0

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Oderbolz, N., Marosvölgyi, B., & Hafner, M. (2024). Towards an Optimal Staking Design: Balancing Security, User Growth, and Token Appreciation. https://doi.org/10.48550/ARXIV.2405.14617

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Thalman, B. (2023). Ethereum: A Deep Dive Into New ETH Rewards Dynamics. https://figment.io/insights/ethereum-a-deep-dive-into-new-eth-rewards-dynamicsethereum-a-deep-dive-into-new-eth-rewards-dynamics/

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Understanding Ethereum

Mahsa Doorfard — Mon, 12 May 2025 13:11:29 +0000

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From Bitcoin to Ethereum: The Evolution of Blockchain Technology

The so-called Blockchain 1.0 introduced the first distributed, public ledger for tracking transactions over a peer-to-peer (P2P) network. Bitcoin has been the flagship of this innovation and represented an important milestone in the first generation of this emerging technology. By incorporating smart contracts and enabling dApps on its own blockchain, the official launch of Ethereum in 2015 started the era of Blockchain 2.0. Ethereum was the very first open-source blockchain, stimulated the creation of novel use cases and led to more initiatives in this area.

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Inside Ethereum: Smart Contracts, EVM, and Network Mechanics

Ethereum’s main goals include scalability, standardization, completeness of features, ease of development and interoperability in a unified framework. It serves as a foundational layer and enables users to develop smart contracts and dApps on the Ethereum Virtual Machine (EVM), with their specific rules and requirements. Smart contracts can be used to automatically execute transactions once certain conditions are met, which reduces the need for intermediaries. Ethereum integrates blockchain technology with its built-in computational engine, known as the EVM. This engine supports decentralized, permissionless, and censorship-resistant applications and organizations.

All Ethereum nodes maintain a synchronized copy of the EVM’s state, making the EVM a “canonical computer” whose state is universally agreed upon. Participants submit computation requests, known as transactions, which the network verifies, validates, and executes. Execution triggers a state change in the EVM, which is then propagated across the entire network. The blockchain itself stores a complete record of all transactions and the current state of the EVM, safeguarded by robust cryptographic mechanisms that prevent tampering. Additionally, every transaction is cryptographically signed to ensure only authorized actions can be executed.

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The Role of ETH and the Power of Community-Driven Innovation

ETH serves as the Ethereum network’s native utility token. It can be obtained for investment purposes and is also used to cover computational fees within the network, which is known as gas. ETH remains central to the network’s operation regardless of the consensus mechanism, as it promotes a market for computation and incentivizes participants to verify, execute and broadcast transactions. A part of the transaction fees is burned, while the rest of the fees are given to the node that accomplishes the required task.

Validator rewards help to discourage malicious activity and therefore serve as a strong incentive mechanism. In addition to on-chain transactions, ETH can be traded on crypto asset exchanges or used to cover transaction fees and computing power. Enhancements to the blockchain network are introduced via EIPs, which describe new functionalities or changes to the ecosystem. Each EIP is submitted to the Ethereum community in the form of a document and serves as the primary channel for resolving existing challenges. A concise, well-defined scope notably increases the likelihood of an EIP’s success. To be considered, an EIP must provide a clear and thorough description of the proposal, demonstrate a tangible benefit to the protocol, and present a feasible implementation plan that avoids unnecessary complexity.

Author: Rafael Ruiz Cramme

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About coinIX GmbH & Co. KGaA

More information: www.coinix.capital

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About coinIX COINVEST SCI1

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Sources:

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Becze, M., Jameson, H., & et al. (2015). EIP-1: EIP Purpose and Guidelines. https://eips.ethereum.org/EIPS/eip-1#history

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Buterin, V. (2014). Ethereum: A Next-Generation Smart Contract and Decentralized Application Platform. https://ethereum.org/content/whitepaper/whitepaper-pdf/Ethereum_Whitepaper_-_Buterin_2014.pdf

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Chen, H., Pendleton, M., Njilla, L., & Xu, S. (2021). A Survey on Ethereum Systems Security: Vulnerabilities, Attacks, and Defenses. ACM Computing Surveys, 53(3), 1–43. https://doi.org/10.1145/3391195

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Chen, T., Zhu, Y., Li, Z., Chen, J., Li, X., Luo, X., Lin, X., & Zhange, X. (2018). Understanding Ethereum via Graph Analysis. IEEE INFOCOM 2018 — IEEE Conference on Computer Communications, 1484–1492. https://doi.org/10.1109/INFOCOM.2018.8486401

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Coingecko. (n.d.). Top Proof of Stake (PoS) Coins by Market Cap. https://www.coingecko.com/en/categories/proof-of-stake-pos

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DefiLlama. (n.d.). Ethereum Total Value Locked. https://defillama.com/chain/Ethereum?groupBy=cumulative

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Dixon, C. (2017). Crypto Tokens: A Breakthrough in Open Network Design. https://medium.com/@cdixon/crypto-tokens-a-breakthrough-in-open-network-design-e600975be2ef

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Dune. (n.d.-a). Smart Contract Deployment Statistics. https://dune.com/pcaversaccio/smart-contract-deployment-statistics

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Dune. (n.d.-b). Ethereum Economic Security. https://dune.com/queries/1933076/7082472

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Understanding Tokenomics

Mahsa Doorfard — Fri, 09 May 2025 08:53:09 +0000

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Hamburg, 9 May 2025 – Tokenomics is a term derived from the combination of “token” and “economics” and describes the economic principles that govern the usage of tokens within a specific blockchain ecosystem. The concept is an essential part of any blockchain project as it defines the underlying mechanisms by which tokens are issued, distributed and used.

The term has gained prominence in the blockchain community after being introduced by Chris Dixon in 2017. As an emerging field, tokenomics explores how tokens function as economic instruments to incentivize preferred behaviors and develop self-sustaining economies around a service or product. It additionally shapes value creation and sustainability in decentralized networks. It comprises incentive structures, governance models and economic mechanisms that together enable decentralized economic activity.

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Beyond Currency: How Tokens Power Blockchain Networks

Tokens provide several functions within blockchain ecosystems. For example, they can serve as a native currency for the corresponding decentralized App (dApp) as well as a medium of exchange. They further can be used as an investment vehicle, an instrument to access certain functions inside a protocol, or a method for fundraising through token sales or initial coin offerings (ICO). A fundamental understanding of tokenomics requires recognizing the diversity of tokens and their classification. Despite numerous attempts to establish standardized frameworks, no universally accepted classification has emerged due to the high degree of differentiation and specialization in this field.

Tokens operate according to predefined rules and behaviors, enforced through cryptography and smart contracts. To categorize these tokens systematically, various classification models have been proposed. One widely acknowledged framework by distinguishes between payment tokens, security tokens, and utility tokens. The most common example of token types are probably utility tokens, which are typically issued by blockchain projects or dApps to grant access to specific services or functionalities — for instance, ETH functions as the native utility token of Ethereum.

Their primary use cases include governance participation (e.g. voting rights), staking mechanisms, and reward distribution. Additionally, they can serve as an internal payment method within their respective ecosystems. The issuance and distribution of utility tokens often follow a process similar to traditional private financing models.

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Tokenomics in Action: Building Financial Incentives for Decentralized Networks

ICOs allow early investors to acquire tokens before they become available to the broader community. Furthermore, tokens facilitate coordination within decentralized networks by aligning incentives between participants through economic rewards and penalties, ensuring decentralized systems to function effectively. The incentive structures embedded in tokenomics encourage important behaviors in the network, such as staking to secure consensus mechanisms or active participation in governance processes.

These economic incentives are particularly important for overcoming the challenges of network adoption, often referred to as the “chicken and egg problem”. The token valuation is dynamically influenced by several factors, including supply and demand, market sentiment and trust within the community.

The credibility of the issuing project, the perceived utility of the token, and the reliability of the underlying blockchain all contribute to its market value. The purpose of tokenomics is to create sustainable economic models that maintain price stability, foster long-term value appreciation and, depending on the individual design, prevent inflation or deflation by integrating token supply and utility mechanisms.

A comprehensive analysis of this field requires consideration of several key dimensions. These factors include various token issuance models, such as fixed or variable supply. They also encompass distribution strategies, for example, vesting schedules that control the release of tokens over time. Additionally, token allocations to team members, investors, and the community, often via airdrops, play a significant role. These supply mechanisms can strongly influence price stability, especially during the early stages of a project’s lifecycle.

When analyzing vesting schedules, which regulates the quantity of circulating tokens, lockup periods may serve as key indicators of future price movements. Controlled lockups are essential for ensuring a fully functional protocol and achieving the required decentralization. Longer lockup periods are generally seen as a positive signal for sustainable development and long-term project success, as they support regulating token distribution, reducing volatility, and supporting value appreciation.

Furthermore, the underlying economic design of the consensus mechanism plays a crucial role in determining whether the network operates under an inflationary, deflationary or disinflationary model. Inflationary mechanisms usually don’t have a fixed maximum supply, which makes them comparable to fiat currencies or assets such as gold, where an increasing supply can lead to devaluation and loss of wealth.

In contrast, disinflationary mechanisms, such as Bitcoin’s Proof-of-Work (PoW), enforce a maximum supply through a predefined issuance schedule with a decreasing rate of new token creation (regulated through Bitcoin-Halving), thereby introducing artificial scarcity once all tokens are in circulation. Additionally, supply can be further reduced through token burns, which increase scarcity and may help stabilize or even increase the token’s value.

Given this, Ethereum can alternate between inflationary and deflationary phases depending on ETH issuance and burn rate, enabled by the transition to Proof-of-Stake and the Ethereum Improvement Proposals (EIP-) 1559 burning mechanism upgrade. Game theory principles and broader economic incentives further influence how tokens are used and retained within an ecosystem.

Finally, the founder team’s experience, their individual track record and expertise, as well as the amount of core developers within the project are crucial factors in assessing long-term sustainability and credibility of each individual project.

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Scarcity and Speculation: Core Challenges in Token Valuation

Despite the growing importance of tokenomics, the field faces several challenges, particularly in terms of valuation and pricing. Unlike traditional financial assets, tokens often lack intrinsic value, leading to significant price volatility. Market speculation, regulatory uncertainties and trading risks further complicate the price determination and make the valuation less straightforward.

Additional challenges of a disruptive and continuously changing technology include critical issues such as data security and privacy, technological security as well as legal and regulatory uncertainties. These challenges highlight the need for further standardization and more robust token economic models that reduce speculation while promoting sustainable value creation within blockchain ecosystems.

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About coinIX GmbH & Co. KGaA

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About coinIX COINVEST SCI1

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Author: Rafael Ruiz Cramme

Sources:

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Di Angelo, M., & Salzer, G. (2020). Tokens, Types, and Standards: Identification and Utilization in Ethereum. 2020 IEEE International Conference on Decentralized Applications and Infrastructures (DAPPS), 1–10. https://doi.org/10.1109/DAPPS49028.2020.00001

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Dixon, C. (2017). Crypto Tokens: A Breakthrough in Open Network Design. https://medium.com/@cdixon/crypto-tokens-a-breakthrough-in-open-network-design-e600975be2ef

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Drasch, B. J., Fridgen, G., Manner-Romberg, T., Nolting, F. M., & Radszuwill, S. (2020). The token’s secret: The two-faced financial incentive of the token economy. Electronic Markets, 30(3), 557–567. https://doi.org/10.1007/s12525-020-00412-9

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Kampakis, S. (2022). Auditing Tokenomics: A Case Study and Lessons from Auditing a Stablecoin Project. The Journal of The British Blockchain Association, 5(2), 1–7. https://doi.org/10.31585/jbba-5-2-(1)2022

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Sadykhov, R., Goodell, G., De Montigny, D., Schoernig, M., & Treleaven, P. (2023). Decentralized Token Economy Theory. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4578703

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Wesley, D. (2018). Utility Tokens vs Security Tokens: What the Future of ICOs Will Look Like. https://hackernoon.com/utility-tokens-vs-security-tokens-what-the-future-of-icos-will-look-like-faa9017e8aa8

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The post Understanding Tokenomics first appeared on coinIX.

Interview with FINEXITY

Mahsa Doorfard — Fri, 11 Apr 2025 13:04:51 +0000

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In this article, Paul Huelsmann, the CEO of FINEXITY, has been interviewed by Mahsa Doorfard, the marketing manager of coinIX. coinIX invested in FINEXITY back in 2020. Click here to watch the interview.

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‘Would you please introduce yourself and tell us how did you end up in the blockchain industry? what is your story?’

It’s a long story, but I’ll keep it brief. I’m Paul. I was born in Germany, lived in the UK for seven years, and also worked in Bangkok and Singapore for a large German conglomerate, mainly in s. I returned to Germany in late 2016 and took on a position as assistant to the global Chief Controlling Officer, again focusing on M&A.

My entry into blockchain was quite straightforward. After my assistant role, I had the opportunity to co-found a global incubator within the same company. One of my co-founders from that time is now at Finexity. Out of the 14 companies we invested in, six were already involved in blockchain. That’s when we really started to dig into the technology.

We realized that technology should always serve a purpose. When used effectively, it can help build a strong brand reputation. But to succeed, you have to strike the right balance — developing advanced tech while keeping your product accessible to a broad audience.

The idea for Finexity came to us in 2018. At the time, we were deeply involved in the payment space and began to see how blockchain could truly transform it — especially in terms of decentralizing payment flows and making high-value assets accessible to a wider audience. That’s essentially what we do at Finexity.

If I had to describe Finexity in one sentence: we are building an exchange for private market investing. Unlike traditional exchanges where you trade stocks and bonds, our platform enables users to invest in private equity and real estate — residential, commercial, hospitality, healthcare, and more. We’ve also worked extensively with collectibles and infrastructure.

In the last five years, we’ve facilitated over 230 different deals across these asset classes, making us one of the largest dealmakers in our segment globally.

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‘How would you explain your project to your grandmother?’

My grandmother is 95, so I’d have to keep it simple. I’d say: with Finexity, you can invest in things that were previously out of reach — like high-value real estate or rare collectibles — without having to buy the entire asset. Let’s say your bank advisor calls and suggests you invest your 10,000 euros in traditional stocks and bonds. That’s fine, but what about assets that were historically reserved for the wealthy?

We make it possible for regular investors to own fractions of these assets through our exchange infrastructure.

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‘When was the first moment that the idea of FINEXITY was born?

The idea came to life in mid-2018. We were still working our corporate jobs back then, and the blockchain space was booming — there was a lot of excitement around STOs and crypto in general.

We saw this as a rare opportunity. We could either seize it or let it pass us by. I’m very glad we went for it. Seven years later, we’ve successfully merged the traditional financial world with the emerging blockchain space. Everything we do is regulated, including our tokenized securities. From day one, we’ve focused on operating within legal frameworks while making these investments more accessible.

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‘What problem is FINEXITY solving?’

At Finexity, our motto is “driving opportunities in private markets.” We’re building the leading exchange for private market investing. An exchange always has two sides — supply and demand.

On the supply side, we work with issuers: asset managers, funds, real estate developers, etc. Their goal is to raise capital quickly and efficiently. Using blockchain, we reduce the cost of securitization by around 80%, thanks to a standardized structuring process and by eliminating unnecessary intermediaries.

On the demand side, we serve investors — both retail and professional. Through our investment brokerage solution, we onboard investors via KYC, AML, and risk adequacy testing, then match them with appropriate products. Professionals get access to a wider range, while retail investors get access to assets they’ve never been able to invest in before.

A big part of our growth comes from our B2B2X model. Since 2022, we’ve white-labeled our infrastructure for use by savings banks, Volksbanks, and wealth managers. They can now offer their clients access to these tokenized securities using our technology.

In short, we’re running an exchange that’s faster, more cost-effective, and opens up investment opportunities that were previously off-limits.

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‘Would you mention some of the recent updates, partnerships, and advancements?’

To grow, a company can scale organically or inorganically. I come from an M&A background, so I strongly believe in inorganic growth — it’s often faster and more strategic.

Just recently — we announced it yesterday — we acquired a Swiss company that’s been active in blockchain tokenization even longer than we have. They issued the first regulated bond passported across multiple countries in 2018. Some might know them as Crowdli Tokens.

We acquired them via a capital increase in kind, meaning their shareholders are now ours. We’re running operations in Switzerland and Liechtenstein, which opens access to new investors and real estate opportunities.

We’re also expanding in the Middle East. Over the past two and a half years, we’ve built solid partnerships and will soon be launching our first five funds focused on private market investments.

Beyond that, we believe in open infrastructure. That’s why we’ve partnered with players like Cashlink, allowing more issuers to use our brokerage network to raise funds. So our focus is currently on expansion, M&A, and partnerships.

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‘Can you name some of your competitors? What makes your project stand out among your competitors?’

Some notable players include 360X — kudos to them, they’ve built a strong team and have a solid regulatory setup. Another is 21X, which recently received a DLT TSS license from ESMA, making them a fully regulated trading and settlement system. That’s a major achievement.

But I don’t think this is a winner-takes-all market. It’s rapidly growing, and those who started early — like us — have a clear advantage.

What makes us stand out is our bottom-up approach. From 2020 to 2022, we focused purely on B2C — issuing and brokering our own securities. Between 2022 and 2025, we shifted to B2X — white-labeling our infrastructure for banks and wealth managers.

Now, we’re in the third phase: scaling. We have the infrastructure, investor base, and partners in place. Newcomers face the challenge of building all of this from scratch, while we’re already integrating everything into one scalable system.

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‘What is your message to the people who have not invested in the blockchain industry yet?’

Blockchain is a big topic, but my advice would be: start small and get some exposure. Cryptocurrencies are a good place to begin — preferably the more established ones, as they offer better liquidity and relative stability. Of course, this isn’t financial advice.

At the same time, consider tokenized assets. If you have, say, $5,000, you might invest $3,000 in something liquid and put $2,000 into a tokenized asset. That way, you get diversification without needing a massive capital outlay.

If you don’t explore blockchain investing, I think you’re missing out.

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Watch the interview on coinIX YouTube Channel:

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The post Interview with FINEXITY first appeared on coinIX.