Coincheck, one of the leading crypto exchanges in Japan, has collaborated with Hash Palette, a blockchain-based content distribution platform, in holding the country’s first-ever initial exchange offering (IEO) event.
As per the exchange’s official statement, this project aims to develop Japanese cultural content through a decentralized approach. On the upcoming IEO, the platform’s Palette Token (PLT) will be sold, targeting to raise approximately 1 billion yen ($9.4 million).
The Monex Group-owned digital asset firm plans to issue and list PLT tokens by March 2021. All profit from this token sale will play an important role in the incentive design, maintenance, and operations of the Pallet chain.
PLT tokens are deployed under the Ethereum blockchain and will be used mainly as payment for consensus node management fees, gas fees, and settlement of NFT sales. Through PLT, sending non-fungible tokens (NFT) and receiving money at the same time are made possible.
According to the announcement,
Through this project, we [Coincheck] will work to create crypto assets that have social significance, not crypto assets that are speculative targets.
Coincheck said that they have been considering the commercialization of IEO since August 2019. With its partnership with Hash Palette, they can create an ecosystem where creators and artists can be provided with innovative experiences through digital content.
Focusing on innovating Japan with blockchain, Hash Palette is a joint venture between manga app company Link-U and blockchain consulting firm HashPort.
Based on the financial report of Monex Group, Coincheck’s year-on-year revenue for Q1 2020 (April-June) has been down by 36% in comparison to its 2019 figures. Moreover, around $667,000 worth of transaction fees were recorded during this period.
Recently, Japanese authorities have ordered the seizure of 48 million yen (about $45,000) in BTC and XEM associated with Coincheck’s hacking incident that stands to be the biggest cryptocurrency heist in history. This kind of legal action related to digital currencies is also the first of its kind in the country.