Crypto Exchange Bitfinex Launches IEO Fundraising Platform Tokinex
Since the beginning of 2019, the crypto industry is witnessing the growth of a new fundraising method termed as the Initial Exchange Offering (IEO). As the name suggests, the IEO is conducted by an crypto exchange and trading platform allowing its customers to participate in the early-stage investments of upcoming digital tokens.
On Tuesday, May 21, cryptocurrency exchanges Bitfinex and Ethfinex, both sister concerns, announced the launch of its new Initial Exchange Offering (IEO) platform dubbed Tokinex. As per the announcement, the Tokinex platform will allow all the qualified users to participate in pre-vetted token sales from exciting new crypto projects.
The platform also aims to provide a seamless user experience by contributing existing assets directly from their exchange wallets and receive the new tokens in the same wallet. Besides the platform will also perform due security checks of investors like doing the KYC by using the Blockpass KYC service.
It will also ensure that before conducting the token sale, the token issuers will go through several layers of commercial and technical due diligence. Because of these reasons, IEOs are considered to be a more secure way of fundraising compared to the ICOs.
IEOs ensure that only qualified and registered customers as well as token issuers participate in the crypto fundraising scheme. Thus, they help to weed out the bad actors in the early stage while creating transparency.
Tokinex will be competing with IEO platforms by other crypto exchanges like KuCoin, OKCoin, and Binance. The good thing about over other IEO platforms is that token issuers will have to pay no upfront fees for listing. Besides, the crypto projects which successfully raise capital on Tokinex will be listed on both - Bitfinex and Ethfinex.
Jean Louis van der Velde, CEO of Bitfinex and Ethfinex, said: "What it means to be an exchange has evolved alongside the maturing crypto market. It has become an entire ecosystem, not just limited to the remit of trading digital assets. Tokinex brings the opportunity for anyone to participate in quality token sales in a fair environment, and for tokens to gain exposure to Bitfinex and Ethfinex users with no upfront cost."
The first token sale process on Tokinex will start from Thursday, May 23.