Coinbase Looking Forward to Launching an Initial Exchange Offering Platform
Coinbase a cryptocurrency exchange based in the US at San Fransisco has considered launching an introductory exchange token. The head of institutional sales at Coinbase in Asia announced this news in the month of September 11. Kayvon Pirestani said that this is a very interesting investment to be introduced by Coinbase. He was speaking on a panel at Invest: Asia in a conference held on Wednesday. He added that even though that was not an official announcement, Coinbase is looking forward to venturing not only in IEO but also in Security offering token.
IEOs came up as an alternative version of offering token at the crypto exchange acting as the promoter. This is according to what was previously reported by Cointelegraph. The exchange mainly operates sales as well as vetting the projects plus their investors.
The IEO generally involves issuing of proprietary exchange tokens that are used for token sales among other purposes. According to Kayvon Pirestani, the official announcement of the initial exchange offering will be done in the following few months.
A Japanese crypto exchange was also contemplating launching an IEO platform to help companies raise funds through utility last month.
IEO is already receiving support from major exchanges including OKcoin, Binance, Bitfinex, and Kucoin. Just like ICO (initial coin offering), IEO is another platform that aims to serve as a cryptocurrency tool for cryptocurrency exchange. The exchange is required to handle anti-money laundering (AML) and know your customer (KYC) on behalf of the startups.
According to the announcement made on July 2018, Coinbase has been approved to acquire security firms that have broker-dealer licenses. These are companies such as Digital Wealth, Venovate Marketplace and Keystone Capital Corp. Pirestani confirmed that Coinbase has already acquired broker-dealer license but are still digesting on the acquisition of the licenses.
Pirestani also said that he had noted many are talking about the security tokens but very few are trading. For that reason, Coinbase will wait for a rise in market demand before they kick-off. IEOs led by Binance are becoming popular in 2019 and beyond.