Coinbase a cryptocurrency exchange based in the US at San Fransisco has considered launching an introductory exchange token. The head of institutional sales at Coinbase in Asia announced this news in the month of September 11. Kayvon Pirestani said that this is a very interesting investment to be introduced by Coinbase. He was speaking on a panel at Invest: Asia in a conference held on Wednesday. He added that even though that was not an official announcement, Coinbase is looking forward to venturing not only in IEO but also in Security offering token.
IEOs came up as an alternative version of offering token at the crypto exchange acting as the promoter. This is according to what was previously reported by Cointelegraph. The exchange mainly operates sales as well as vetting the projects plus their investors.
The IEO generally involves issuing of proprietary exchange tokens that are used for token sales among other purposes. According to Kayvon Pirestani, the official announcement of the initial exchange offering will be done in the following few months.
A Japanese crypto exchange was also contemplating launching an IEO platform to help companies raise funds through utility last month.
IEO is already receiving support from major exchanges including OKcoin, Binance, Bitfinex, and Kucoin. Just like ICO (initial coin offering), IEO is another platform that aims to serve as a cryptocurrency tool for cryptocurrency exchange. The exchange is required to handle anti-money laundering (AML) and know your customer (KYC) on behalf of the startups.
According to the announcement made on July 2018, Coinbase has been approved to acquire security firms that have broker-dealer licenses. These are companies such as Digital Wealth, Venovate Marketplace and Keystone Capital Corp. Pirestani confirmed that Coinbase has already acquired broker-dealer license but are still digesting on the acquisition of the licenses.
Pirestani also said that he had noted many are talking about the security tokens but very few are trading. For that reason, Coinbase will wait for a rise in market demand before they kick-off. IEOs led by Binance are becoming popular in 2019 and beyond.
Coinbase Pro disappoints NYC DASH traders
Any cryptocurrency network and its underpinning code are subject to malicious intervention. This is especially true when it comes to smart contracts. Numerous projects offer this functionality, which exposes all of them to potential hacks and theft. For one EOS-based gambling dApp, a recent exploit cost them over 30,000 EOS in the process. It is not unlikely such an attack will be repeated in the future.
A bad day for EOSPlay
Most people are well aware how EOS is primarily used to build gambling dApps. That is a rather logical development, as the cryptocurrency community often flocks to gambling services, for some unknown reason. As of right now, the top EOS dApps mainly provide gambling services, which attracts a lot of users. Among those users, not everyone has legitimate intentions either.
For the EOSPlay team, a very problematic scenario has arisen. Not only has its smart contract code been exploited by a hacker, but they also lost over 30,000 EOS in the process. It appears the hacker was able to manipulate the smart contract in such a manner all of the bets placed would result in a profit. How or why something like that is possible in 2019, raises plenty of questions, for obvious reasons.
How was it Exploited?
The EOS ecosystem is quite intriguing in its own regard. Many different services and technologies are at play at any given moment. Not too long ago, users received the ability to rent and lease CPU and NET through the REX resource exchange. Although this is a welcome addition to the ecosystem, it was seemingly a matter of time until someone would sue for nefarious purposes. That day has now come, and the consequences should not be ignored.
The attacker staked CPU and NET for his own purposes, and attacked the EOSPlay smart contract. This allowed him to negate other users’ transactions, up to a certain degree. After a while, the EOS network becomes slightly congested, which let the attack initiate certain contracts to the gambling dApp in question. The winning conditions were manipulated, and over 30,000 changed hands in very quick succession. Even the developers could not halt this attack while it was in progress due to congestion.
An Inherent Flaw?
Issues like these only highlight the core weaknesses of the different cryptocurrency ecosystems. It is not an issue native to EOS, although the method through which it was exploited certainly is. Smart contract-oriented attacks have been in place on Ethereum for some time as well. In most cases, hackers successfully claim some funds in the process, which will only encourage more criminals to try their hand at this method in the future.
The bigger question is how the EOS community will respond to this new turn of events. The credibility of the project is far from an all-time high, primarily due to the high degree of perceived centralization. Additionally, the public figure of EOS – Dan Larimar – has made some remarks regarding Bitcoin and Ethereum which weren’t appreciated. Plenty of users wish ill-will upon EOS because of its public face being a persona non grata in the crypto world. A very troublesome situation indeed, albeit one that needs to be rectified as soon as possible.
Coinbase are set to list Dash on Coinbase Pro
Coinbase have just tweeted that they are launching Dash on their Coinbase Pro platform
There was a massive spike in DASH/BTC but the move was quickly pared. The coin is said to be listed on 16th September.
As you can see from the 4-hour chart below there was a massive price spike in Dash. The DASH/BTC moved just over 15% in 1 minute before dropping back to preannounce levels.
Coinbase Crypto Exchange Plans to Launch Initial Exchange Offerings (IEO)
Although Initial Coin Offering (ICO) was a fancy term in 2017, the ICO market is pretty much dead now. But in the year 2019, Initial Exchange Offering (IEO) is becoming the new trend in the crypto industry.
The latest report unveils that the United States crypto exchange Coinbase is eyeing to launch its own “Initial Exchange Offerings (IEO) and a platform for security token offerings (STO).
Coinbase Deciding to Launch IEO
Coinbase cryptocurrency exchange is pushing itself harder to adopt widespread awareness from the worldwide crypto industry. Although the official announcement is yet to be revealed, the Coinbase’s Chief of institutional sales, Kayvon Pirestani told media;
We think there’s a really interesting opportunity there for Coinbase,” said Pirestani, continuing: “In a nutshell, Coinbase is carefully exploring not only the IEO space but also STOs (security token offerings). But I can’t make any formal announcements right now.
IEO – Exchange-led rebirth of the ICO
Although Initial Coin Offering (ICO) was a fancy term in 2017, the ICO market is pretty much dead now. But in the year 2019, Initial Exchange Offering (IEO) is becoming a new trend in the crypto industry. In fact, there’s nothing wrong calling it as – the exchange-led rebirth of the ICO wherein Exchange sells token on behalf of the new projects needing to raise funds from the public.
One of the critical aspects that differ IEOs from ICOs is that the whole project will be carried out in high standard security frameworks, set out by several exchanges. Investors are likely to rest assured with their funds invested in IEOs hosted by crypto exchanges.
Coinbase’s IEO launch is no surprise as its competitors have already launched and flourished in the crypto market well enough. Prior to Coinbase, competing giants such as Binance, OKcoin, Bitfinex, and KuCoin are already in a top list of hosting multiple IEOs.
While Coinbase’s executive didn’t open to more information about their IEOs, he further said that the firm would reveal the detail information about its IEO plan in the “next few months.” He also adds that STOs are quite near at their launch but added that the company felt rare demand for the STO product right now– henceforth, it will wait a bit more.