Bitfinex announced on May 21, 2019, that they have started looking at the possibility of taking part in Initial Exchange Offerings (IEOs).
The first of its kind from Bitfinex, the Tokinex, will be unveiled on Thursday May 23 and another will follow suit on June 13.
To know what this means to Bitfinex, here are Jean van der Velde’s words:
“What it means to be an exchange has evolved alongside the maturing crypto market. It has become an entire ecosystem, not just limited to the remit of trading digital assets.” Jean is the CEO of Bitfinex and Ethfinex.
Bitfinex is not the first exchange to come up with this idea. Others including OKCoin, KuCoin and Binance have long started. IEOs have proven to be better than ICOs in raising funds. The most obvious benefit is that you can be protected from money laundering issues especially if you are a startup. Know Your Customer (KYC) services is also a distinct advantage. Also, going to an IEO would achieve faster results as the IEO may attract most of their customers to your advantage. Usually, these come with huge fees but Bitfinex has promised to eliminate upfront costs for Tokinex. After raising the money, Bitfinex’s staff revealed that Tokinex will appear on Bitfinex and Ethfinex.
Interested participants will visit Tokinex online. After the KYC checks from Blockpass, they will be given some materials to help them understand offerings and settlements better.
Someone from Bitfinex said that CoinDesk users will gain access without any fees or tokens.
Apart from Tokinex, Bitfinex also has LEO, the exchange token. This is like Binance which has also combined the use of tokens with trading. It is believed that LEO will reduce trading expenses.