On the 5th of April, 2020, the crypto exchange Poloniex had revealed its new initial exchange offering (IEO) platform, powered through Tron (TRX).
The Many Stipulations
Projects aiming to do their IEOs through the new platform have to adhere to a stipulation that one would expect from Tron’s exchange: The issuing of tokens must be done in exchange for TRX and will be done on a first-come, first-serve basis.
The company was quick to state that partner projects, besides needing to agree to raise the money through TRX. Projects are further mandated to requirements regarding screening and eligibility. The company was quick to state that regulatory considerations must be made when it comes to certain jurisdictions; thus, entities within these jurisdictions might not be able to get a listing.
Promising Increase In Growth And Aid
Through the announcement, Poloniex stated that LaunchBase was created with the intent to help the growth of various quality blockchain projects, developing their respective ecosystems even further. Furthermore, Poloniex said that this IEO platform would offer guidance and advice of professional quality to help assist the partner projects.
Through the statement, Poloniex explained that more details in regards to LaunchBase would be revealed in the days to come.
New Stablecoin Project Looming
As a matter of course, the very first project slated to conduct its IEO with this new platform, is a Tron-based stablecoin lending platform, going by the name of Just (JST)
Just stands as a decentralized lending platform, where users stake TRX in order to generate a stablecoin, namely USDJ. This, in turn, can be used to pay for maintenance, interest, or some other activities.
The Mandatory Hype
As one would imagine, Justin Sun, the founder of Tron, had a lot of good words to say about his company’s new project. He described Just as a building block of the Decentralized Finance (DeFi) industry’s lending and governance protocols.
(1/6)Huge congrats on launching @Poloniex #LaunchBase, a world-leading token sale platform! As Poloniex’s strategic partner, @Tronfoundation and I will fully support the LaunchBase platform and its future development. https://t.co/amRgWKjNiH
— Justin Sun (@justinsuntron) April 5, 2020
Justin Sun was a member of a consortium of investors that had purchased Poloniex back in October of 2019. As it stands now, Poloniex is the 15th largest crypto exchange by volume, meaning that there is a good amount of money to be made from it.
IEOs stand as an alternative to the ICO, or initial coin offering. With an IEO, the issuing exchange handles things like marketing, regulation, and market-making, and get a significant share of the distribution of the token, in return.
However, there’s been some bumps in the road, with Binance’s Launchpad platform having been ridiculed for its centralization and overall token distribution.