Coincheck, Inc., the cryptocurrency exchange of the Monex Group, Inc. announced this Tuesday that it has partnered with Hashpalette Inc. on a joint project which aims to realise the first Initial Exchange Offering (IEO) in Japan.
Under the partnership, Coincheck will sell Palette Token (PLT) via its cryptocurrency exchange. PLT is a utility token built on the Ethereum blockchain and issued by Hashpalette and can be used on Palette, which is a blockchain platform for manga, anime, sports, music and other forms of content.
Hashpalette is a joint corporation between Tokyo Stock Exchange First Section company Link-U Inc. and HashPort Inc., a company that focuses on blockchain. The company was jointly established by Link-U and HashPort in March of this year. The purpose of the company is to digitise the content industry through blockchain technology.
An IEO is a variant of an initial coin offering (ICO). As the name suggests, IEOs are conducted on the platform of a cryptocurrency exchange. The aim of IEOs is for the exchange to support startups and to raise funds via their newly issued tokens.
Coincheck has been considering IEOs since 2019
According to the statement released by Coincheck today, the crypto exchange has been considering entering the IEO business since August of last year. PLT is used for consensus node management fee payments, smart contract commissions (gas), NFT transaction settlements and other applications on Palette Chain.
Via cross chain technology, Palette Tokens can go back and forth between Palette Chain and Ethereum blockchain freely.
“As a new challenge, Coincheck will support settlements, voting, and the sale and distribution of Palette Tokens that are provided as an incentive for the operating node to accelerate the growth of this ecosystem through crypto assets. In addition, through this project, Coincheck will strive to create crypto assets that have societal significance beyond being a speculation vehicle,” Coincheck said in its announcement this Tuesday.