Poloniex announces the IEO LaunchBase platform and only accepts purchases with Tron (TRX)
Medium cryptocurrency exchange Poloniex disclosure The IEO platform is supported by Tron (TRX) on April 5.
Projects that want to sell on Poloniex LaunchBase's token issuance platform will have to comply with the regulations that issue new tokens in exchange for TRX. The law of the foundation will be whoever comes first will be served first.
Poloniex announced the new IEO platform supported by Tron
Poloniex confirmed that LaunchBase was launched to “help quality blockchain projects further develop their ecosystem,” the company said the platform would “provide professional advice and guidance” to support projects. partner project.
In addition to agreeing to raise funds through TRX, partners will have to comply with “screening and eligibility requirements.” Entities in a “certain jurisdiction” may not be eligible for review.
Poloniex said more details about LaunchBase will be published in the coming days.
The first project to launch token sale on LaunchBase
The first project to conduct IEO with Poloniex is a Tron-based stablecoin lending platform called Just (JST).
Just is a decentralized lending platform – where users can staking TRX to receive bonuses with USDJ stablecoins. USDJ can be used for interest payments, maintenance and other activities.
On Twitter, Justin Sun – CEO of Tron, was describe Just project is like building a decentralized financial lending and management protocol (DeFi).
Sun is an Asian investor who bought Poloniex in October 2019. At the time of writing, Poloniex is the 15th largest cryptocurrency exchange by volume.
IEO faces criticism for token allocations
IEO has emerged as an alternative to ICOs in early 2019. An IEO-released exchange will handle all aspects of regulation, marketing and market creation for projects that want to open and sell. These projects will have to allocate a significant amount of tokens to the exchange.
Many projects that sell tokens through Binance's Launchpad platform have been criticized for distributing and centralizing their token distribution.
Only 19% of the total supply of the Matic Network (MATIC) project is allocated for sale through IEO on Launchpad. 11 months after IEO, the top 100 MATIC wallets held 98.62% of the total supply.
Meanwhile, Harmony (ONE) debuted on Binance Launchpad in November after that, the project only released 12.5% of total public sales. Today, 99.47% of Harmony's supply is kept in two wallets.
In July 2019, the Wink (WIN) project continues to release only 5% of its total supply through Launchpad IEO.
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According to CoinTelegraph
Translated by ToiYeuBitcoin