Projects seeking to conduct their offerings on Poloniex’s LaunchBase platform face the stipulation of issuing tokens in exchange for TRX, and will be considered on a “first-come, first-serve” basis.
Poloniex asserts that LaunchBase is intended “to help quality blockchain projects grow and further develop their ecosystem,” stating that it will “offer professional advice and guidance” to assist partner projects.
In addition to agreeing to raise funds in TRX, partner projects will be subject to “eligibility and screening requirements.” Entities located in “certain jurisdictions” may not be eligible due to regulatory considerations.
Poloniex states that more details regarding LaunchBase will be disclosed in the coming days. The first project slated to conduct an IEO with Poloniex is a Tron-based stablecoin lending platform called Just (JST).
Just is a decentralized lending platform where users can stake TRX to generate the USDJ stablecoin, which can be used to pay for interest, maintenance, and other activities.
Tron founder, Justin Sun, described Just as building a decentralized finance (DeFi) lending and governance protocol:
Sun was among a consortium of Asian investors who purchased Poloniex in October 2019. Poloniex is the 15th-largest crypto exchange by volume.
IEO’s have emerged as an alternative to initial coin offerings (ICOs) where the issuing exchange handles considerations including regulation, marketing, and market making in exchange for a significant share of a token’s distribution.