Poloniex’s New IEO Platform React


Justin Sun, founder of Tron, announced that he had purchased Poloniex a few weeks ago. Poloniex, one of the leading exchanges in the sector, has started to develop new products and services since then.

One of these new products was LaunchPad. This platform, which Poloniex announced a few hours ago, is referred to as an IEO platform. So you can use this platform to develop your own token.

Overview of IEOs
Until a few years ago, in the crypto money world, we have heard the name of ICOs (the first digital money supply). But because of these ICOs, a lot of fraud turned and too many people were hurt. On top of that, cryptocurrency exchanges found a new solution: IEO.

These IEOs, which we can call the first stock market supply, enable a newly developed token to be sold to the public through a stock market. These exchanges inspect that token before it goes on sale, check whether it is legitimate and only put that token on sale if everything is as it should be. Thus, people do not fall victim to fraud. As an example, we can show projects such as MATIC and Harmony (ONE) in Binance.

LaunchPad Overview
This LaunchPad platform, recently announced by Poloniex, is expected to provide convenience to people. More precisely, the stock market’s claim is in this direction.

According to the statements made, the LaunchBase platform will contribute to the “growth of quality blockchain projects” and thus “development of the ecosystem”. Poloniex will provide “professional advice” to new cryptocurrency projects and teams and some kind of mentoring through LaunchBase.

Thus, teams that are trying to enter the cryptocurrency world will be able to think of expert names, eliminate the deficiencies in their projects and develop higher quality projects in general. So far, everything is good, nice, nice. But there are some problems.

Decentralization Criticism
We gave examples of MATIC and Harmony projects in Binance. These projects grew rapidly in a short time thanks to Binance. But in this process, they were criticized by many people for being central. For example, only 19% of the total MATIC supply; Only 12.5% ​​of Harmony was reserved for public sales. So IEOs were already criticized for not being decentralized enough. But there are other reasons why people criticize Poloniex.

First of all, we need to take a more detailed look at the LaunchPad platform. Yes, this platform will help new cryptocurrency projects but under certain conditions. At the beginning of these conditions, if necessary, to pay allegiance to Tron.

Projects trying to enter the market through LaunchBase will have to collect money with Tron (TRX). These projects will not be able to use another token in the investment collection process. Meanwhile, cryptocurrency projects using LaunchBase will be subject to very strict “audits”. However, when we say ‘auditing’, we do not know exactly what they mean. A section from Poloniex’s explanation is as follows:

“All participants will be subjected to compliance reviews and audits. Unfortunately, due to some local laws, we may not be able to serve projects in certain areas. Please note that LaunchBase will work with ‘first come out’ style. Only TRX, the token of Tron, can be used for purchases on this platform. We will share more details in the coming days. ”

According to the statements of Poloniex, the name of the first project to be launched with LaunchBase has been announced. This name may sound familiar to you: JUST.

This Just, a lending platform, is of course supported by the Tron Foundation, founded by Justin Sun. The first project on Poloniex’s LaunchBase platform, which Justin Sun received, will also be Just.

These statements by Justin Sun and this new project of Poloniex attracted many reactions. People like Erkan Öz and Squanch, who we know from the domestic crypto money industry, even say that the market (from Justin Sun) should be saved.