This is the first part of a three-post series that introduces Bitfinex Token Sales, our mission and how we plan to achieve it.
We are excited to unveil Bitfinex Token Sales, a comprehensive digital assets offering and launch solution for high-quality crypto projects. From today, Bitfinex Token Sales will replace our current IEO platform, Tokinex. We intend that all future Bitfinex Token Sales will include utility for holders of a certain amount of UNUS SED LEO.
Bitfinex is one of the oldest and largest digital asset exchanges in the world. We have always prided ourselves on pioneering innovation. Bitfinex Token Sales represents a significant development for the primary issuance, development and launch of digital assets.
Why Token Sales Matter
We believe that altcoins will play an important part in our future, with token sales performing a crucial role in the success of new altcoins. A token sale is an opportunity for contributors to be exposed to new crypto projects. For the projects themselves, a token sale is a way to promote and distribute tokens and grow communities.
As a token sale platform, our aim is simple — work with the best projects and offer our clients fair terms and a transparent processes. We believe that if we can do this, everything else will follow.
The Story of Token Sales so Far
The first generation of token sales came in the form of Initial Coin Offerings (ICOs), which have not sustained their initial popularity. A lack of transparency and project-scrutiny are among the reasons why ICOs have fallen out of vogue.
IEO’s inception at the beginning of this year marked the second generation of token sales. Through partnering with an exchange, a project was able to obtain access to a large user base and guarantee an exchange listing. IEOs are a significant improvement on the ICO model but they have been handicapped as most exchanges have used them as a marketing tool. In order to generate the most excitement and buzz, exchanges have encouraged projects to focus on short-term results and this is usually unsustainable and detrimental to the long-term health of the project. This is demonstrated by the fact that the all-time high achieved by most IEO tokens is within the first few weeks of the listing. This is not compatible with the objectives of any new business, which is to continuously grow and add value over time.
Why Bitfinex Token Sales is Different
The distinction lies in the different purposes of Bitfinex Token Sales and other IEO platforms. Bitfinex Token Sales is a platform that aims to create the best conditions for the long term, sustainable growth of the tokens offered in the sale. Such an environment provides a strong value proposition for projects and contributors.
Exchanges have large user bases, technical expertise, access to liquidity and high-profile brands. All of these factors leave exchanges well placed to manage token sales. However, Bitfinex Token Sales will not just be a marketing exercise.
IEOs are a one-size-fits-all model. Bitfinex Token Sales understands that different projects have differing requirements and seeks to accommodate these differing needs by offering the opportunity to participate in a wide variety of token sales.
The upcoming Kimcoin token sale is a good example of this — K.im want to sell tokens to develop and grow but they are not yet ready to list, making an IEO inappropriate. However, we want to offer Bitfinex users the opportunity to participate in the K.im token sale and we are able to do so by taking this flexible approach.
We truly believe that Bitfinex Token Sales will be the catalyst for the next generation of high quality crypto projects and we are excited to share this journey with our users. Stay tuned for part two of this blog that will explain how we think about value and why this is important to all crypto enthusiasts.
This post is not an offer to sell or the solicitation of an offer to buy any tokens. Any sales would be made only through definitive agreements and subject to the terms and conditions of the Bitfinex Token Sales platform.
Offers and sales of tokens through the Bitfinex Token Sales platform will not be made in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction or in any jurisdiction which would require licensure or other registration of the Bitfinex Token Sales platform. Further, sales will not be made to persons or entities of the British Virgin Islands, Canada, the United States, or Switzerland or in jurisdictions or to persons prohibited under applicable law or sanction regime.
Bitfinex Token Sales is a token sale platform for crypto projects operated under license by an affiliate of the Bitfinex exchange entities.