Binance will be carrying out initial coin offerings (ICOs) on its token sale platform, Launchpad, almost every month in 2019. The two ICOs scheduled to be offered this year are TRON’s BitTorrent and Fetch.ai.
Through Launchpad, Binance attempts to legitimize the crypto-based ICO method. The firm intends to encourage such an approach, despite the turbulence since it gained prominence in 2017.
On January 3, Binance announced that the companies offering ICOs on Launchpad undergo a screening process to ensure that they are compliant with the concerned laws. The pre-requisites for companies involves having a legitimate business plan and the potential to offer benefit to the cryptocurrency industry.
In a statement, the CEO of Binance, Changpeng Zhao said:
“In 2019, Binance Launchpad will help launch projects serving the universal cryptocurrency ecosystem as a whole that benefits people around the world. Bringing on distinguished token sales to the Launchpad platform is our continuing efforts to create a more secure and open token launch environment, paving a healthier market in 2019 and beyond.”
However, the firm’s token sale platform is not available in the United States, South Korea, China, and several other countries. The decision is influenced by the regulatory issues associated with ICOs in many areas. ICOs are yet to be legalized in many jurisdictions.
Binance hopes that ICOs will upend the trend that started in the second half of 2018, the time when a rapid decline in the funding occurred. Although ICOs have been used by companies to raise billions of dollars, their future remains doubtful.