1XBit

Coincheck to Conduct First Japanese Initial Exchange Offering (IEO) This Summer

UTC by staff writer · 3 min read
Coincheck to Conduct First Japanese Initial Exchange Offering (IEO) This Summer
Photo: Unsplash

With this announcement, Coincheck has firmly planted its foot on the course to becoming the first-ever crypto exchange to conduct an IEO in Japan. 

Coincheck, a starring subsidiary of the Monex Group, and a leading crypto exchange platform in the nation of Japan on Monday, 31st May 2021, announced its plan to conduct an initial exchange offering (IEO) of HashPalette Inc (HPT). According to the press release by the group, plans have been concluded so the IEO can proceed by summer.

HPT is a multi-blockchain and token platform that was founded in March as a joint venture and headquartered in Japan. The token platform supports common blockchain networks like Ethereum, Neo and Ontology.

An Offer in the Right Direction

With many cryptocurrency exchangers springing up and expanding into the country and with crypto investments reported to have reached up to 16.2% by December 2020 according to the Global Retail Investor Survey conducted by the Mondex group, it comes as no shock that Coincheck as eventually announced this further development in their partnership with HPT.

This is all the more obvious when you consider that the company has been looking to increase its crypto business after suffering one of the largest crypto hacks which saw the platform lose about $534 million XEM tokens in one full swoop attack in 2018.

Through this IEO, the company will now partner with HPT to help sell Palette Tokens (PLT). After the initial announcement of the partnership in August 2020, HPT had revealed that all monies generated from selling the palette tokens would be deployed into the development of the Palette Blockchain platform to facilitate the creation and distribution of more virile digital content.

Apart from the partnership with HPT, Coincheck has also been exploring other routes into the world of non-fungible tokens space with Cointelegraph announcing in a previous report that Coincheck had also stated their plans to list tokens by Chiliz alongside that of CryptoKitties already available on their exchange platform.

Implications of the Coincheck IEO

The IEO is a fundraising approach that requires an established exchanger to act as an underwriter and provide support to aid the formation and the growth of crypto communities while funding the procurement process by issuing tokens. It is a unique kind of coin offering that requires the exchanger to issue utility tokens digitally while standing in the place of the issuer, selling the tokens.

Once the tokens are sold, the companies can then construct open and develop decentralized networks that comprise users, tech developers, investors, and service providers and other network participants globally. Some have argued as to whether or not IEO tokens qualify as securities yet this has not in any way dampened the plans of Coincheck.

With this announcement, Coincheck has firmly planted its foot on the course to becoming the first-ever crypto exchange to conduct an initial exchange offering in Japan.

Altcoin News, Blockchain News, Cryptocurrency news, News
Related Articles
EarnBet