Coinbase has announced that it may launch an initial exchange offering (IEO) similar to Binance’s Launchpad program. The news follows the downhill movement of Binance’s influence in the US which eventually lead to it ending services in the United States. Although Binance has launched a US platform the exchange still seems to be losing its grip over the region.
So can Coinbase seize the opportunity to establish a stronghold in its homeland?
The concept of initial coin offerings (ICOs) thrived in the year 2017 while 2019 become home to IEOs. Binance seizing the moment launched an IEO platform called Binance Launchpad to launch new cryptocurrencies with exchange support.
The trend then snowballed and various other exchanges started offering IEO services. Through the trend many new projects were able to attract suitable investors to support their development. However, soon Binance announced that it will no longer offer services to residents of the United South. This created quite a stir in the markets as both the IEO craze and the altcoin market started moving downhill.
Regardless, people are still invested in the idea of IEOs as is evident by the fact that Coinbase itself is seeking to launch an IEO platform. According to the company’s head of sales in Asia, the company is also looking into the subject of Security Token Offerings (STOs). However, as of now, he is unable to make any formal announcements regarding the topic.
What is Coinbase trying to do?
Is Coinbase just following the trend of IEOs or is it trying to utilize the gap between Binance and US investors for its own benefit? Coinbase was the market leader back in 2017 but things changed when Binance charged into the scene. Binance immediately became a market leader and has been giving a tough time to Coinbase ever since.
Now Coinbase has several advantages over Binance which it can use to gain superiority in the markets. The most incredible advantage is that the former allows over twenty altcoins to be traded through the exchange while Binance.US only offers seven assets altogether.