The stablecoin, which is pegged to the US dollar, was the first token launched on the crypto exchange Poloneix’s new Intiatial Exchange Offering (IEO) platform LaunchBase. Poloniex, which is partially owned by Sun, said last month that the stablecoin would be generated from Tron tokens (TRX) through a Collateralized Debt Position on the stablecoin’s JUST platform.
Just prior to the launch of the new Poloniex token sale platform last month, Tron was hit with a class-action lawsuit alleging violations of US securities laws in connection with the sale of Tron (TRX) tokens. The complaint was part of a set of “Red Wedding” lawsuits which were filed against Binance, BitMex, and other major crypto companies—all which alleged illegal sales of tokens associated with ICOs.
Over the last few years, token sales, ICOs, and IEOs have come under heavy scrutiny from regulatory authorities such as the US Securities and Exchange Commission. What’s more, just as stablecoin trading volumes are exploding across the crypto industry, and regulators around the world are beginning to take notice of the potential “risk to global financial stability” from the growth of stablecoins.