Coincheck to Start  Administering IEOs to Users

On August 22nd, 2019, Coincheck, a bitcoin wallet and Cryptocurrency exchange, announced their plans to begin administering Initial exchange offerings IEOs. This plan will allow users to buy tokens directly from their exchange wallets.

IEOs are fundraising events administered by a Cryptocurrency exchange. On the platform, users can participate in fundraisings for various projects. IEO is different from the traditional Initial coin offering, ICO where projects are funded by team members only. Coincheck is a Tokyo-based, Monex -Owned decentralized financial system. It seeks to achieve innovation, economic freedom, and equal opportunities for people all over the world.

The Popularity of IEO in the Digital Currency Market

IEO’s increased adoption by Cryptocurrency developers rose after ICOs popularity diminished. Coincheck is one of the many exchange platforms that are stepping up to provide IEO services to the public. As the administrator, Coincheck will play the role of scrutinizing, vetting offerings before making any listing on their exchange. This move will help minimize chances of running into rogue ICOs, which try to fund weak projects. 

In a statement issued by Coincheck, the Company said that, “IEO is recognized as a method that offers a higher degree of trust behind such issuers by screening the issuing body while maintaining the benefits of Initial Coin Offerings, such as reducing financing costs, establishing a fan-community and ecosystem, and enabling issuers to fundraise without any equity distribution.”

Advantages of using IEO

With IEOs, users do not need to manage transactions with different wallets and Blockchain. They can use their accounts on a cryptocurrency exchange platform to move their funds through the exchange’s trustworthy website interface. It also employs a high level of scrutinization of the projects to be listed and so customers can be assured they are backing up great projects.

Coincheck, through IEO, will target companies and other project teams that have yet to use IEO to raise funds for their work, grow their business and expand their community with tokens. Coincheck platform also offers a user-friendly interface and asset security.

Coinbase’s decision to start an IEO is advantageous to them because it enjoys a crypto-accommodative and well-regulated Japanese market. On the other hand, other cryptocurrency exchanges located in places like the US are still struggling to work around rigid regulations imposed by regulatory authorizes. Other companies that have IOEs include BInance, the world’s largest crypto exchange, Houbi, Bitfinex, and Gate.io.

About Coincheck

Coincheck was founded in 2014 as a bitcoin crypto- exchange platform that has more over 1.8 million users. Monex bought Coinbase after the exchange suffered a significant hack back in 2018. With IEO services, Coinbase continues to rise by revamping itself and complying with the Japanese Financial Services Agency (FSA) regulations. Coinbase is also a member of the Japan Virtual Currency Exchange Association.


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