Poloniex announced its forthcoming platform of initial exchange offering (IEO) operated by Tron (TRX) on 5 April.
Projects aiming to operate on Poloniex’s LaunchBase platform are entitled to tokens for TRX and will be treated on the basis of “first-come, first-serve.”
Poloniex announces the IEO platform operated by Tron.
Poloniex claims that LaunchBase is designed “to help in the creation and further growth of quality blockchain projects,” adding that it “provides technical advice and guidance” to support partner projects.
In addition to agreeing to collect TRX funds, collaboration ventures would be subject to “eligibility and screening requirements” and, because of regulatory considerations, businesses based in “other jurisdictions” will not become eligible.
Poloniex says that further LaunchBase information will be released in the next few days.
Only to make the first bid through LaunchBase.
The first project to run an IEO with Poloniex is a stable coin lending platform called Just (JST) on Tron.
It’s just a decentralized lending network for users to purchase TRX to produce the stable USDJ — which can be used to pay for interest, maintenance and other activity.
Much like creating a decentralized lending and governance protocol (DeFi), Tron founder Justin Sun represented Twitter.
Sun belonged to an Asian investment consortium that acquired Poloniex in October 2019. Poloniex is the 15th largest volume cryptographic exchange.
IEOs face criticism over token allocations.
IEOs have been developed to be an alternative to initial coin offers (ICOs), where the issuing exchange deals with financial, marketing and market making issues in return for a substantial part of token’s distribution.
Many projects introduced on the Launchpad platform were criticized for their token distribution and centralization.
Just 19% of the total availability of Matic Network (MATIC) has been distributed on the Launchpad via its IEO. The top 100 MATIC wallets carry 98.62% of supply 11 months after their IEO.
During the following month, Harmony (ONE) released its website — releasing just 12.5% of its overall public sales. 99.47% of the stock of Harmony is now held in two pockets.
Wink (WIN) provided only 5% of its supply in July 2019 via Launchpad IEO.