Coinbase Initial Exchange Offering is set to launch soon along with other interesting products as per the report.
Coinbase, the popular crypto exchange based in the USA, is looking to enter the famed realm of Initial ‘Exchange Offerings’ (IEO).
Kayvon Prestani, Coinbase’s institutional sales chief, has disclosed that the company is foraying in the current hot trend of crypto and besides also actively working towards creating a ‘Security Token Offerings’ (STO) platform for its customers.
However, there has been no official confirmation from the company so far.
Coinbase Initial Exchange Offering will cash in on the trend
Currently, IEOs are offered in token sale form by various well-known exchanges including Kucoin, Binance, and Bitfinex. Coinbase is keen to join the league and offer more value to its customers.
IEO started around 2 years ago and quickly gained ground as a reliable crowdfunding method. The only difference being that in this case, the guarantee factor is provided by the exchange which verifies the viability and trust quotient of the IEO via thorough analysis of the associated whitepapers. All the research part is actually handled by the exchange on behalf of the potential investor.
Exchanges carry out these sales through issuing a native token that is specifically issued for this very purpose. This concept also aids in increasing the liquidity of the native coin on the platform itself. For example, BNB is used on Binance.
The AML and KYC related to the startup that will deal in the native token sales are also managed by the exchange. So, in a way, the exchange plays a crucial role here.
Reports suggest that Coinbase Initial Exchange Offering is only months away from launching the token sale along with a regulated securities venue announcement.
Binance Rules the IEO Realm
When it comes to IEOs, Binance is making all the right waves. Band project, the most recent token sale on Binance, was touted hugely successful considering the current crypto-times. The platform also offered a 300,000 BAND airdrop.
Initially, IEOs were offered as regular token sales by Binance but later a lottery system was introduced by the exchange to effectively cater the excessive demand. Lottery tickets are distributed as per the trading volumes and BNB balance of the investors.
