Coincheck, a Japan-based crypto exchange will be offering an initial exchange offering (IEO) in coordination with Hashpalette. Hashpalette wants to sell its Palette Tokens (PLT) in this IEO. Coincheck launched an IEO platform to help raise funds via utility tokens.
Based on an August 25, 2020, announcement from Coincheck, the exchange will partner with Hashpalette in the IEO to sell PLT on the Ethereum blockchain platform Palette. Reports indicate that Coincheck aims to coordinate the IEO with the Japan Virtual and Crypto assets Exchange Association (JVCEA) before the end of 2020.
Hashpalette launched in March as a joint business between blockchain firm HashPort and Japanese company Link-U. The PLT is non-fungible tokens (NFT) that can be used on the Palette blockchain platform for various purchases related to Japanese sports, manga comics, and music.
The firm announced that it is in discussions with several companies about the IEO. A representative from Coincheck said:
“We are building an ecosystem that allows creators and artists to provide customers with unique experiences in digital content. We can accelerate the growth of this ecosystem with crypto assets for supporting payment methods and voting; and the sales and distribution of Palette Tokens provided as incentives for operating nodes.”
By description, an IEO is a fundraising method that is administered by a well-established and proven cryptocurrency exchange. In contrast to an ICO where the project team conduct the fundraising by themselves; an IEO happens on a well-known exchange’s platform. The parties involved raise funds by issuing utility tokens.
Coincheck says that it wants to establish an IEO for over a year. Its parent company, Monex Group, has hinted at a possibility of an IEO in periodic public statements.