The article cites the chief of institutional sales at Coinbase, Kayvon Pirestani, who says that Coinbase is eyeing not only the area of IEO but also considers making a platform for security token offerings (STO).
However, no official announcements have been made so far.
IEOs on other platforms
At present, token sales in the form of IEO are offered to customers by such platforms as Binance, OKcoin, Bitfinex and Kucoin. Coinbase seems to be interested in joining this line of headliners.
IEO is a crowdfunding method similar to ICO that was extremely popular two years ago. However, in the case of IEO, an exchange that conducts it provides a sort of a guarantee regarding the project by studying its whitepaper, etc, before offering it to investors.
These sales on exchanges are carried out with the help of a native token that is often issued for this particular purpose. On Binance, BNB is mostly used. This adds liquidity to the native coin of the platform.
When conducting an IEO, an exchange takes care of KYC and AML procedures regarding the startup allowed to sell its tokens to investors.
As per CoinDesk, Coinbase may release a token sale platform within a few months, as well as a venue for regulated securities.
The most recent IEO on Binance
The token sale that was held on Binance recently was that for the Band project, along with a 300,000 BAND airdrop from the platform itself.
The exchange started making IEOs in the form of regular token sales but later on, it introduced a lottery system, when investors receive lottery tickets depending on their BNB balances and trading volumes.
Usually, Binance conducts an extra airdrop for those whose lottery tickets are not winning ones.