CoinFLEX, the futures exchange platform for cryptocurrencies, is prepared to introduce one-of-a-kind initial futures offering (IFO) for its PolkaDot token sometime this week.
CEO Mark Lamb enthusiastically remarks that the company is about to set foot in an unexplored territory by launching IFO for a token that is yet to be released. The initiative will help the firm determine its market cap.
A unique offering such as this will enable investors to buy the exchange token Polkadot’s DOT. Attractively priced at seventy-five dollars ($75) for a DOT, the exchange service is following the footsteps of the IEO’s introduced by Binance in May this year.
CoinFLEX mimicking Binance design?
Not long ago, CoinFLEX had engaged in futures contracts with Bitcoin (BTC) and Ether (ETH). Following its success, the exchange service then set up its own token named FLEX.
As is the case with Binance, FLEX tokens can also be utilized for the purpose of exchange fees and many other upcoming opportunities. Lamb mentioned that the firm if the firm manages to hit a home run with its flagship IFO, it will also consider incorporating BNB and TRON futures later this year.
CoinFLEX may top up the token price to reach valuation target
In its initial bid for over one billion dollars ($1.2 billion) valuation, Polkadot has been one of the most sought after blockchains in recent years.
It is speculated that for the exchange to accomplish the targeted valuation, it should price its token with one hundred dollars ($100) each in the future. With the token likely to be released four weeks after the IFO, the investors will be required to invest in a thousand FLEX at the pre-sale, before the IFO officially expires.
Although there have been no official comments from CoinFLEX regarding its market participants, the CEO confirmed that the firm has received close to fifteen million dollars ($15 million) worth of DOT tokens.
Meanwhile, CoinFLEX’s Business Development Chief, Emmanuel Alamu, commented that a distinctive approach to IFO such as this will assist the company in determining the real value of its token and set a benchmark for future advancements on blockchain.
With all that said, it will be interesting to watch whether the futures contracts for a yet-to-be-released token will work in the favor of CoinFLEX or backfire to cling to already established asset classes like Bitcoin.