Crypto exchange Coincheck announces Japan's first ever IEO

Japanese crypto exchange Coincheck’s goal to organize the first-ever initial exchange offering (IEO) in the country is moving closer to becoming a reality.

Crypto exchange Coincheck announces Japan's first ever IEO

The crypto exchange announced that the Hashpalette (HPT) initial exchange offering (IEO) will take place in the summer.

The IEOs are a modified form of initial coin offering, where a crypto exchange platform acts as an intermediary between token issuers and investors. IEOs have also been the subject of regulatory uncertainty, especially concerning whether IEO tokens qualify as securities.

Coincheck Exchange formed a partnership with Hashpalette back in August 2020, with plans for HPT to become the first IEO-issued utility token in the Japanese crypto market. At the time, the plan was coming on the heels of newly-passed cryptocurrency laws in Japan, creating a clear-cut legal framework for token sale events among other market segments.

Coincheck is aiming to improve crypto business across the country and conducting Japan’s maiden IEO seems a big part of the efforts.

Back in January 2018, the exchange suffered one of the largest cryptocurrency hacks in history with about $534 million in XEM tokens stolen from the platform.

Hashpalette is a cross-blockchain and nonfungible token platform that focuses on digital content like manga, music, and sports, among others. It supports popular blockchain networks like Ether (ETH), Neo (NEO), and Ontology (ONT).

In August 2020, during its IEO announcement, Hashpalette revealed that the proceeds from the token sale would be used to develop is Palette blockchain platform for more robust digital content distribution.

Coincheck has also been making other significant inroads into the NFT space as the exchange announced plans to list NFTs by fan token giants Chiliz on its marketplace.