Crypto exchange DRIVE Markets has become the latest player to jump into initial exchange offerings (IEOs).
The company, on April 2, announced that it has started to accept applications from blockchain firms to host token offering on its exchange platform.
The exchange has also introduced a listing-as-a-service (LaaS) model which will spread the cost of the listing process and will create a long term engagement between the listed businesses and the exchange.
Commenting on IEOs and the new business model, Kate Hiscox, CEO of the exchange, said: “Our goal is to change the perception of listing in the crypto markets and introduce the companies of the future to our growing base. For companies with a proven team, strong business model and traction, listing is a great way of accessing funding for growth and expansion.”
IEO vs. ICO
IEOs can be categorized as an evolved form of initial coin offerings (ICOs). Although both techniques let blockchain-based businesses raise funds, the involvement of established exchanges in IEOs assures the authenticity of the project as the involved exchange does all the necessary due diligence.
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In the press release, DRIVE Markets detailed that the approval process for an IEO on the exchange includes all the necessary regulatory approval. In addition, the platform thoroughly checks its commitment to quarterly reporting.
“Direct to listing is a natural evolution for utility and security tokens. At DRIVE, we believe that digital asset trading is the future but it must come with a foundation of responsible listing,” Hiscox added.
The exchange is going to debut its IEO platform by listing its native token – DRIVE Coin (DRV). The platform will initiate the purchasing process on April 3 at 2:00 pm (GMT).
With the new token offering platform, the Canadian crypto exchange has joined the major market players like Binance, Bittrex, and Huobi. Binance has set the trend of IEOs by hosting back-to-back successful token sales. Recently, the crypto exchange has updated its allocation rules for new tokens to address the issues with high demand.
Last month, DRIVE Market launched collateral trading in Bitcoin, Litecoin, Bitcoin Cash, Ripple, and Ethereum.