Controversial Bitfinex Launches Its Initial Exchange Offering Service Tokinex, Incoming IEOs Galore
There are different exchanges that are currently launching different Initial Exchange Offerings (IEOs).
Bitfinex has announced today the first IEO with a project called Tokinex. On June 12, there is going to be another cryptocurrency launched through the exchange.
IEOs Arrive at Bitfinex
The controversial virtual currency exchange Bitfinex is now going to be launching the first project through its IEO platform. The CEO of the company explained that the exchange has evolved alongside the maturing crypto market and it became an entire ecosystem.
There are other exchanges such as KuCoin, OKCoin and Binance that have launched their own IEOs and platforms for projects. There are some advantages and negative sides of these IEOs. Compared to an Initial Coin Offering (ICO), exchanges have a commitment to handle Know Your Customer (KYC) and Anti-Money Laundering (AML) checks on behalf of the startup or project. At the same time, the exchange will be promoting the offering to its customers.
Once the Tokinex IEO is completed, the coin will be traded on the Bitfinex and Ethfinex platforms, as reported by company officials. Users will have to be registered on the Tokinex site and they will have to provide information about their KYC data.
Bitfinex has recently launched a coin called LEO that will allow users to pay lower fees at the exchange, and that helped Bitfinex raise a large sum of money. The firm has been involved in different controversies due to the fact that they have used Tether (USDT) funds in order to cover up $850 million in losses.
At the time of writing this article, Bitfinex is the 41st largest cryptocurrency exchange in terms of trading volume. As reported by CoinMarketCap, the company handled over $215 million in trading volume in the last 24 hours.