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Coinbase, have announced the opening of an Initial Exchange Offering (IEO) platform during the Coinbase’s investing conference in Asia. The event, which took place yesterday, welcomed prominent personalities of the crypto world, including Kayvon Pirestani, Coinbase’s head of institutional sales in Asia.
Pirestani commented during the panel that the San Francisco-based company is evaluating new types of capital-formation tools, IEOs being one of them. During the Coindesk’s event, Pirestani confirmed:
“We think there’s a really interesting opportunity there for Coinbase. In a nutshell, Coinbase is carefully exploring not only the IEO space but also STOs (security token offerings). But I can’t make any formal announcements right now. A potential Coinbase IEO platform may emerge in the next few months”
An IEO is a fundraising instrument that is not open to all investors. IEO is an acronym of “Initial Exchange Offering” and describes a mechanism hosted by an exchange to raise capital for a specific company. Therefore, an IEO is lead by a recognised crypto exchange on behalf of the company. For investors to be able to participate in the process, they need to create an account on the exchange where the offering is being made. Also, to conduct an IEO, a company must meet certain requirements asked by the exchange. The token sale can only be done if the startup follows the procedures.
Nowadays, many important exchanges have their own IEO Platform. For instance, Binance has Binance Launchpad, Bittrex has Bittrex International IEO, Bitmax has Bitmax Launchpad, OKEx has OKEx IEO and Huobi has Huobi Prime. Now, Coinbase has jumped into the space, it will be interesting to see how it plays out.
Image licensed via Shutterstock
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