In a blog post on May 21, 2019, Bitfinex, a Hong Kong-based cryptocurrency exchange & Ethfinex, a decentralized exchange owned by Bitfinex announced the launch of Tokinex, an initial exchange offering (IEO) platform which can be used by qualified customers to discover and participate in carefully selected, pre-vetted token sales offered by new and exciting projects in the cyptosphere.
Bitfinex and Ethfinex Launch Tokinex
Per the blog post, Bitfinex & Ethfinex have launched Tokinex today, and the platform can be used to view and participate in token sales from new and exciting projects in the cryptocurrency community.
Before a user can take part in each token sale event, they will have to undergo a Know Your Customer (KYC) procedure using the Blockpass mobile app which Bitfinex claims is highly secure and does not store personal data of users after the token sale.
In the same vein, a potential investor can purchase digital assets on Tokinex using a personal exchange wallet that is holding their funds, and they can also transfer procured tokens to the same wallet.
Qualified projects, on the other hand, will only have to pay a fee after the successful completion of their token sale.
They also stand a chance of receiving a dual exchange listing that will give them exposure to one of the largest pools of liquidity in crypto.
The Bitfinex team has made it clear that an announcement will be made on May 23, 2019, about the details of the first token sale that will be launched on the new platform and the event will go live on June 13, 2019, at 3:00 GMT+1.
There is, however, a limitation as to who can participate in the token sale events. People residing in the United States and some other restricted jurisdictions, for instance, have been excluded.
Surviving the Storm
While the launch of an IEO platform by Bitfinex is indeed exciting news for the firm and its supporters, it remains to be seen whether the success of this new venture will entirely erase the controversies that have been associated with Bitfinex and its sister, Tether from the memory of observers in the cryptospace.
As reported by BTCManager on May 13, 2019, Bitfinex CTO Paolo Ardoino announced that the exchange had raised a whopping $1 billion through private placements from investors in iFinex in just ten days for the launch of its initial exchange offering.