Bitfinex, along with its sister company Ethfinex, has announced the launch of an initial exchange offering (IEO) platform called Tokinex.
As per the announcement, the IEO platform will list the first token this Thursday followed by the second listing on June 13.
While clients of both Bitfinex and Ethfinex can participate in the token sales with their existing accounts, Ethfinex is solely responsible for running the new platform.
After much development to ensure a user-optimised experience, we are proud to unveil the latest product in our portfolio, Tokinex, our new Initial Exchange Offering platform.
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— Bitfinex (@bitfinex) May 21, 2019
IEO – the new trend in crypto
IEOs have gained massive popularity in the recent months after a few successful listings by Binance on its native IEO platform Binance Launchpad. As the listings are already backed by an exchange, there is a guarantee of the tokens listing on a trading platform amid the sales. In addition, unlike ICOs in an open market, the IEO-listed projects go through rigorous scrutiny and due diligence by credible sources.
Other leading global exchanges including Huobi, Bittrex, and Gate.io also jumped into the sector with their own platforms.
No listing fees
To outrun the competition, Tokinex will not charge the blockchain companies any listing fees, which means, for generating revenue, it will only depend on maker-taker fees amid the listing of these tokens on the exchange.
The new IEO platform has been unveiled at a time when Bitfinex is facing serious allegations of utilizing cash reserves of its affiliated company Tether to cover up a loss of $850 million. Since the NY Attorney General accused the crypto exchange of wrongdoings, it has raised $1 billion in a private placement for its exchange token LEO to compensate the losses incurred by Crypto Capital.
Meanwhile, the Supreme Court of New York has recently ceased all cash flow from Tether to Bitfinex and asked the exchange to produce all documents related to the loan.