Bitfinex announced today its first foray into the increasingly popular business of initial exchange offerings (IEOs).
A new Bitfinex service called Tokinex will announce its first token launch this Thursday, followed by the debut of a second token on June 13.“What it means to be an exchange has evolved alongside the maturing crypto market. It has become an entire ecosystem, not just limited to the remit of trading digital assets,” said Jean Louis van der Velde, CEO of Bitfinex and Ethfinex.
BitFinex follows other major exchanges like OKCoin, KuCoin and Binance into this new line of business. Thus far there have been a few advantages to fundraising with an IEO over an initial coin offering (ICO). Most notably, the arrangement usually comes with a commitment from the exchange to handle all Know Your Customer (KYC) and Anti-Money Laundering (AML) checks on a startup’s behalf.
IEOs also usually come with a commitment by the exchange to promote the offering to its pool of customers.These services usually are contingent on hefty fees, but startups approved to run on Tokinex will face no upfront costs and, after successfully completing fundraising, the token will become listed on both Bitfinexand Ethfinex, according to company officials.
Participants will register through the Tokinex site where they will receive KYC checks from Blockpass, research materials on offerings and settlements through their existing exchange wallet. A spokesperson did not respond to a request for comment about whether users would be charged any sort of fee for access to these sales.
In addition to Tokinex, the company just launched LEO, its exchange token. Previously, Binance tested the idea of using a token to lower trading expenses on a given exchange with its BNB token.
Bitfinex image via Shutterstock
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A new Bitfinex service called Tokinex will announce its first token launch this Thursday, followed by the debut of a second token on June 13.“What it means to be an exchange has evolved alongside the maturing crypto market. It has become an entire ecosystem, not just limited to the remit of trading digital assets,” said Jean Louis van der Velde, CEO of Bitfinex and Ethfinex.
BitFinex follows other major exchanges like OKCoin, KuCoin and Binance into this new line of business. Thus far there have been a few advantages to fundraising with an IEO over an initial coin offering (ICO). Most notably, the arrangement usually comes with a commitment from the exchange to handle all Know Your Customer (KYC) and Anti-Money Laundering (AML) checks on a startup’s behalf.
IEOs also usually come with a commitment by the exchange to promote the offering to its pool of customers.These services usually are contingent on hefty fees, but startups approved to run on Tokinex will face no upfront costs and, after successfully completing fundraising, the token will become listed on both Bitfinexand Ethfinex, according to company officials.
Participants will register through the Tokinex site where they will receive KYC checks from Blockpass, research materials on offerings and settlements through their existing exchange wallet. A spokesperson did not respond to a request for comment about whether users would be charged any sort of fee for access to these sales.
In addition to Tokinex, the company just launched LEO, its exchange token. Previously, Binance tested the idea of using a token to lower trading expenses on a given exchange with its BNB token.
Bitfinex image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
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Francisco Gimeno - BC Analyst Exchanges are growing, maturing, New products like IEOs, token offerings, etc, are here strong. Is yet too much noise in the market? Probably, but this is a normal development for a new industry on the brink of adapting to existent and new regulations.