Initial Exchange Offerings (IEOs) appear to be the next big thing as Bitfinex and its sister company Ethfinex join Binance, OKEx, Bittrex, and Gate.io as the latest crypto exchanges to launch an IEO platform: Tokinex.
According to the Tokenix announcement, the first token sale on the IEO platform will be announced on May 23 and will take place on June 13.
After much development to ensure a user-optimised experience, we are proud to unveil the latest product in our portfolio, Tokinex, our new Initial Exchange Offering platform.
— Bitfinex (@bitfinex) May 21, 2019
An Initial Exchange Offering (IEO) is similar to an Initial Coin Offering (ICO) except for both the cryptocurrency project developer and the investor facilitate their transactions through the exchange. It’s viewed as a better, safer, and more secure alternative to an ICO because the exchange conducts project due diligence.
Per the Tokinex platform announcement, Jean Louis van der Velde, CEO of Bitfinex and Ethfinex was quoted saying:
“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.
Moreover, the announcement added that projects that qualify for issuance via the Tokinex platform are only charged a fee if their token sale is successful, and are subsequently listed on both the Bitfinex and Ethfinex crypto exchanges.
In other news, Bitfinex recently raised $1 billion in a private sale for the exchange’s native cryptocurrency, the LEO token. Traders could start trading LEO as of May 20.
Will Bitfinex outperform Binance’s IEO platform this year? Let us know what you think in the comment section below.