Leading U.S-based cryptocurrency exchange, Coinbase may launch an Initial Exchange Offering (IEO) platform soon, according to Kayvon Pirestani, Coinbase’s head of institutional sales in Asia.
At Coindesk’s Invest: Asia conference Wednesday, Pirestani said during a panel on the evolution of cryptocurrency capital formation that they “think there’s a really interesting opportunity there for Coinbase.”
While IEOs are exclusively available to the exchange’s users, the concept of an IEO is, however, considered one of the several capital-formation tools, according to Pirestani, adding that the possibility for an IEO platform is being explored by Coinbase.
In his words:
In a nutshell, Coinbase is carefully exploring not only the IEO space but also STOs [security token offerings]. But I can’t make any formal announcements right now.
Possibly, in the next few months, the Coinbase IEO platform could be launched according to the Pirestani, further noted that the exchange’s plan for regulated securities offerings might take a little much longer.
He noted that Coinbase would roll out an STO product following an increased demand in the market as security tokens are usually “talked about a lot but traded much less.” Hence, the exchange will for a green light from the market.
In no doubt, IEOs are now the latest method of raising funds for promising crypto projects. While Coinbase’s plans to launch its IEO platform soon, major exchanges like Binance, Okcoin, Bitfinex, and KuCoin already unveiled their fundraising platforms.
IEOs take on the role of middlemen to address issues ICOs of being unregulated. Since IEO relies on an exchange to act as the trusted broker offering the legit token sale, any illicit token promoted can put an exchange’s credibility at stake.
Read original at Coinfomania
Author: Ibiam Wayas