Japanese Crypto Exchange, Coincheck, to Issue Country’s First Initial Exchange Offering (IEO)
Coincheck, a leading Japanese crypto exchange, announced on August 25 that it would be initiating the country’s first Initial Exchange Offering (IEO). The underlying objective of this offering is to raise $9.4 million, or 1 billion Yen for Hash Palette, which is a solution that leverages blockchain to distribute Japanese content through music, anime, and manga.
IEO’s have grown in popularity as a seemingly more reliable means of raising capital without the hustle of old school fundraising markets and processes. This approach has served as a fundamental growth driver for financing crypto-oriented projects. With this alternative gaining traction, crypto exchanges like Coincheck complement the process by acting as intermediaries which can issue and sell the underlying tokens.
Hash Palette’s IEO on Coincheck
Following the token sale announcement, Coincheck and Hash Palette are optimistic about listing the latter’s native token ‘PLT’ by the end of Q1, 2021. The proceeds gathered from this token sale will then be used to further develop the ‘Palette’ blockchain ecosystem for better efficiency in content distribution.
Hash Palette has noted that they expect most of the pre-sale tokens to be acquired by their supporters. What's interesting is that this initiative is a joint venture between blockchain the consulting firm Hashport and Link-U, the company behind the manga app.
While this milestone comes as a big boost to Coincheck as well, the crypto exchange has had its own fair share of challenges. Back in 2018, this platform was compromised, with the hackers stealing around 58 billion Yen ($532 million) at the time. Nonetheless, Coincheck seems to have regained the trust of Japanese financial authorities hence the bold move to issue an IEO on behalf of Hash Palette.