Tron-based IEO platform launches amid securities lawsuit

A new token launch platform from Poloniex will host Tron-based offerings, just as Tron faces lawsuits alleging the sale of unregistered securities in the US.

2 min read

Apr 6, 2020

Are IEOs dead? There’s at least one crypto exchange looking to keep initial exchange offerings alive—despite growing legal uncertainty.

Seychelles-based cryptocurrency exchange Poloniex, which is partly owned by Tron CEO Justin Sun, today announced the release of LaunchBase, a new token issuance platform. The exchange said it “will collaborate closely with projects, community members and industry-wide partners to seed and promote the adoption of quality cryptocurrencies worldwide, including via the sale of tokens to eligible participants on the Poloniex platform.”

In the blog post, Poloniex said all participants will be screened for “local law requirements.” Further, the exchange noted that the platform will be exclusive to offerings made in Tron’s TRX cryptocurrency. As such, the first project selected to launch on the platform is a Tron-based stablecoin platform called “JUST.”

Poleinex said TRX tokens are slated to be used on JUST’s Collateralized Debt Position (CDP) portal “to generate USDJ,” a USD-pegged stablecoin.

But the launch of Poleinex’s new ICO-like platform comes at a potentially inopportune time. Just two days ago, Tron was hit with a class-action lawsuit alleging the sale of unregistered securities in the United States. The claim was just one of several “Red Wedding” lawsuits to come down against some of the biggest firms in crypto over the weekend. Prior, regulatory agencies such as the SEC had signaled they had begun taking a close look at IEOs over potential violations of securities laws.

Sun’s ties to Poloniex are not without its own controversy. After initially denying any formal involvement with the exchange, Sun later confirmed that he was part of the investor group that acquired the firm following its split from Circle.

Tron’s Sun has aggressively promoted the exchange on social media over the last several months. Today, he continued his cheerleading, congratulating Poloniex on the release of LaunchBase and boasting that “$TRX will be the only eligible currency for purchases.”

Get crypto news straight to your inbox--

sign up for the Decrypt Daily below. (It’s free).

Get Email!

United States of Bitcoin? These States Are Considering BTC Reserves

Donald Trump and his political allies are plugging away at plans to stockpile Bitcoin at a national level in the U.S. Treasury. And now, with the asset’s price repeatedly soaring to new peaks since Election Day, some U.S. states are following suit. So far, three states are fielding proposals to establish strategic Bitcoin reserves, while digital asset advocates are calling for other local governments to do the same. Bitcoin Strategic Reserve Is Now on the Table—Here's How It Could Work Here'...

AI Won’t Tell You How to Build a Bomb—Unless You Say It’s a 'b0mB'

Remember when we thought AI security was all about sophisticated cyber-defenses and complex neural architectures? Well, Anthropic's latest research shows how today’s advanced AI hacking techniques can be executed by a child in kindergarten. Anthropic—which likes to rattle AI doorknobs to find vulnerabilities to later be able to counter them—found a hole it calls a “Best-of-N (BoN)” jailbreak. It works by creating variations of forbidden queries that technically mean the same thing, but are expre...

Elon Musk and Dogecoin: How the Billionaire Became the 'Dogefather'

As Dogecoin makes a comeback off the back of Bitcoin’s surge, some may be pondering: Where did the asset come from? What’s it for? And what’s Tesla CEO Elon Musk got to do with it? The original meme coin’s boom largely has the world’s richest man to thank. Musk’s obsession with shitposting helped boost the coin to a top 10 cryptocurrency. It’s been a wacky ride over the past few years, culminating in Musk's appointment to co-lead a government agency called D.O.G.E.—yes, really. But we'll explai...

News

Courses

Deep Dives

Coins

Videos