Coinbase CEO Brian Armstrong has confirmed that the behemoth crypto exchange will be developing a platform that would aid startups to launch their own tokens. And not just that, Coinbase will also provide an effective guide to work on their technical and governance issues.
Last year in September, Coinbase was mulling over launching a proprietary token which would route its way to become a prospective platform for Initial exchange offerings. At the Asia Conference held last year, Coinbase’s head of institutional sales in Asia, Kayvon Pirestani, said that IEO as a fundraising platform could be an interesting business proposition and opportunity for the company. At that point, Coinbase’s plans were still speculative but last year’s speculation has now become a reality because the cryptocurrency exchange has taken on it to assist startups launch their own token via IEO.
The confirmation to the news came in when the CEO of the exchange affirmed on a podcast interview with O’Shaughnessy Asset Management CEO Patrick O’Shaughnessy. The interview transcripts can be accessed here. He also pointed out that the new service could be called “Coinbase Launch” which is just an idea, not put to paper yet. On the same lines, CEO Brian Armstrong said,
“We’re working on a product, we’ll probably call it Coinbase Launch or something like that but it’s a way for anybody who wants to do a crypto startup to come in and say, ‘All right, I want to issue a token. Maybe I want to raise money. Maybe I just want to use it to build my community.’”
He also added that if the need arises they would also hand-hold people to see that the entire set of processes and due diligence are taken care of. They will also help them with the custody of it, aid them in creating a smart contract, provide necessary support with governance-stricken issues. Coinbase would build the platform to launch the tokens but that will not mean it will just launch the platform and leave the companies. The exchange will go a step ahead by aiding them with the step-by-step process of the successful execution plan. The best part about this whole venture is the advantage it will bring to investors. Any token launch coming through the Coinbase platform approval will increase their trust and also relax their minds about being a genuine offering compared to an unknown platform launch. Armstrong drew analogies to the combination of startup toolkit Stripe Atlas and AngelList. He said,
“I don’t know what exactly the analogy would be, but that could be a huge unlock for the crypto economy as well, to get a thousand new startups built like that.”
He refrained from commenting on the dates of the Coinbase Launch (the name could be changed later). He hasn’t confirmed when the venture is likely to go live. Now when the platform launches is a question we all have in our minds, but this news will surely trigger hopes and trust in the minds of investors easing their decision on which token to invest.