Tuesday, 26 May 2020

BitPay Enters Crypto Crowdfunding with First IEO Token Sale

Despite similarities with Binanc, questions remain as to whether token sales on BitPay will have the same kind of success.

Following within the footsteps of Binance’s Launchpad, BitPay is presenting its own version of an Initial Exchange Offering (IEO) platform which, contrary to ICOs concept, administrates crypto crowdsales on behalf of the startup that seeks to raise funds with its newly issued tokens.

A blockchain firm called QANplatform, which says it builds a energy-efficient platform that relies on a new protocol, will be the first project to hold an initial exchange offering on BitPay’s Launchpad platform. The IEO sale of QARK tokens will go live on 18th November, and BitPay is billing the token sale as the first to allow investors to buy IEO tokens directly through Euro, Polish Złoty and GBP.

As it stands, IEO encompasses a cryptocurrency exchange hosting third-party token sales on its platform, which allows potential projects to tap into the user base of exchange and reach a wider audience. On the other side, the crypto exchange guarantees transparency since it enforces identity verification for all participants and thus helps protect investors from ICO scams.

Although there are similarities in the sale process for tokens listed through different IEO platforms, but, compared to Binance, questions remain as to whether token sales launched on BitPay will have the same kind of success. Demand on Binance’s launchpad has been so extreme, given the massive user base, with some IEOs have sold out in minutes. This led the world’s most active crypto exchange to introduce a lottery-like system, where participants must have a certain amount of its native token, the BNB, in order to qualify.

BitPay suspended operations in Germany

“Our IEO Launchpad has been created to provide investors with an all-in-one-place solution. We deliver the complete information about a project, as well as offer a simple process for buying tokens with both crypto and different FIATs (PLN, EUR, GBP, USD). By bridging this gap, even novice investors and no-coiners can participate in the sale” explains Paweł Sobków, CEO of Pinewood Estonia OÜ, a BitBay platform operator.

BitPay, which was founded in 2011, already holds a so-called Virtual Currency License from the New York State Department of Financial Services (NYDFS). This coveted license allows the company to offer clearing and settlement services to merchants willing to accept or issue payment in cryptos.

In August, however, BitPay suspended its operations in Germany as new regulations in the country set to take effect next year and will require crypto businesses to obtain a license that’s issued by the German regulators.

source: financemagnates.com
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