We have seen the dissipation of the ICO craze due to regulatory obligations and the multiple scams that surfaced during the past two years. A new way to help startups raise funds has surfaced with the help of cryptocurrency exchanges: Initial Exchange Offerings (IEOs). IEOs are more trustworthy and secure than ICOs as all projects are pre-vetted by the exchange before public announcements.
Multiple exchanges have created an IEO platform to host token sales. Binance made the first move with “Binance Launchpad” which has proven to be a success so far. Their last IEO, MATIC, delivered a 17x return for investors and they are now setting up for the next one, Harmony (ONE). Following Binance’s footsteps, other cryptocurrency exchanges opened their own IEO platforms such as Huobi Prime and OKex Jumpstart. Today, another top exchange joins this new trend: Bitfinex.
After having dealt with a wave of bad news concerning their USDT line of credit, they were able to get back on their feet by raising $1 Billion in the private LEO token sale (the new exchange token). However, they did not stop there, today was the official launch of their new IEO platform, Tokinex, that will host its first token sale on the 13th of June.
Bitfinex explained in their announcement that all projects will be pre-vetted and the public will be provided with a third-party research report. All users that wish to participate will need to complete KYC using the Blockpass app. Unfortunately, due to regulations, U.S-based users (and a few other jurisdictions) will not be able to take part in any of the sales on the Tokinex platform.
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