Coincheck has announced its plans to carry out an Initial Exchange Offering (IEO) this summer. The IEO will be of Hashpalette, a firm that Coincheck had partnered with in August last year as part of the plan to start its venture through the IEO.
IEO of Coincheck
An IEO is a process where a crypto exchange platform helps the broader crypto community and investors by issuing tokens. An IEO is almost the same as an initial coin offering (ICO). The tokens issued by the firms will allow the launch of more decentralized projects and support investors, users, developers, and other members of the community. IEOs and ICOs have become highly popular in recent years as they give incentives to participants on the network.
According to the official statement, the firm stated that “Coincheck has long supported companies and projects in their efforts to issue tokens. To contribute to the further growth and development of cryptocurrency exchanges, Coincheck began considering entering the IEO business and, in August 2020, joined forces with Hashpalette with the goal to realize Japan’s first IEO.
Upholding its corporate mission to “offer easy access to new means of exchanging values,” Coincheck is striving to add new cryptocurrency in their exchange, increase its usability and develop new services.”
Attributed to Boom in Crypto Demand
This year has been marked by a high demand for cryptocurrencies and other digital assets. The last few years have especially been quite promising, which has led to more IEOs. Coincheck is venturing into the crypto service sector as one of the main ways of meeting this high demand.
This is not the only move for Coincheck towards developing the crypto sector. In February this year, the firm acquired Metaps Alpha, a blockchain company behind the ‘miime’ NFT marketplace. The firm will use the acquisition as an opportunity to venture deeply into NFTs.
Coincheck’s parent company, Monex Group, has also reported increased growth in the financial service sector. In the recently released financial report, Monex Group stated that its crypto service sector has been doing quite well and had achieved significant profitability margins.
Before venturing fully into the cryptocurrency sector, Monex Group had completed a survey dubbed ‘Global Retail Investor Survey.’ The survey details stated that the number of crypto investors in Japan who had cryptocurrency investments had reached 16.2%, a record high in the country. The same survey also revealed that the number of US0based crypto investors had also increased significantly.