The popular Japanese cryptocurrency exchange Coincheck that was hacked in 2018 is now becoming the first Japanese exchange offering an Initial Exchange Offering (IEO) in the country. The information was released by the platform in a recent press release where they explain which are the new plans they have.
Coincheck Launches Japan’s First IEO
Coincheck, the crypto platform that was hacked in early 2018, is now launching the first IEO in Japan. The first initiative is going to be including and supporting a domestic firm called Hash Palette, which focuses on distributing content such as manga, anime and other Japanese graphic novels.
The main goal is to gather $9.4 million in local currency (1 billion yen) and move forward with the development of the platform.
Initial Exchange Offerings (IEOs) started a few years ago as a way for companies to gather funds without having to do an Initial Coin Offering (ICO). Initial Coin Offerings allowed firms to attract investors, receive funding and move forward with the production of their platforms and services.
Nowadays, Coincheck has become a leader company in the Japanese market. The firm is currently the first one in Japan launching an IEO. This shows how the company has been growing over time despite the negative effects of being hacked.
The company announced they were hacked in January 2018 losing 523 million NEM (XEM) coins. At that time, this was equal to $500 million. Since that moment, the company changed the way in which it operated and it was sold in order to continue operating.
After this hack, Japanese authorities started to impose larger regulations in the cryptocurrency market. This is something that allowed firms to improve their security standards, services and products. Nevertheless, this has also had a negative impact in the number of firms operating in the market.
Now, Coincheck and Hash Palette are working together in order to issue the Palette Token (PLT) and sell it to investors in the industry. The coin is going to be launched as soon as in March 2021 and it will become the first IEO in Japan.
The decision to launch this IEO came after Link-U, a company focusing on manga and the blockchain consulting firm HashPort joined forces. With the money collected with this new IEO, it will be possible for the firm to develop and expand the blockchain platform called “Palette.”