Coincheck, one of the largest crypto exchanges in Japan, announced Tuesday it would support a domestic company to launch the country’s first Initial Exchange Offering (IEO) and raise funds via a token sale.
- Hash Palette, a platform that distributes content such as Japanese graphic novels (manga), anime and music, aims to raise about 1 billion yen ($9.4 million) through a token sale on Coincheck, CoinDesk Japan reported.
- IEOs are one of the emerging ways for companies to find an alternative to traditional fundraising processes. A crypto exchange creates a platform for such companies to issue and sell tokens to investors who have accounts on the exchange.
- Coincheck, which is now part of the Monex Group, has had to win over the trust of Japanese financial authorities after the exchange suffered a $500 million hack in 2018, one of the largest hacks in crypto history.
- The company plans to issue and list Palette Token (PLT) by March 2021 and claims that it would be the first IEO in Japan.
- Hash Palette is a joint venture between manga app company Link-U and HashPort, a blockchain consulting firm.
- The capital raised through the token sale will be used for development and operation of the blockchain platform “Palette,” and the company expects most tokens to be sold to fans of Hash Palette content.