Binance, OKEx and KuCoin Are Using IEOs to Command the Spotlight

Binance has launched four new projects and is marching ahead with at least one a month as it simultaneously develops a decentralized exchange.

Now global competitors such as Bittrex, KuCoin and OKEx all offer IEOs as well, although their formats vary.

In contrast to Binance's Launchpad, KuCoin's comparable Spotlight division will launch its second IEO on May 28, featuring the CHROMA token issued by the software-as-service startup ChromaWay, which already garnered $11 million in a private token sale last year.

KuCoin CEO Michael Gan told CoinDesk the exchange's first IEO in April raised $4.2 million worth of crypto.

It's unclear how much exchanges themselves earn from IEOs.

The second anonymous source said several exchanges are switching to prioritize IEOs and no longer considering new or niche assets for general listings.

Plus, sometimes exchanges don't charge for IEOs.

ChromaWay's Perelman told CoinDesk that startups need IEOs for "Liquidity and marketing," and that KuCoin doesn't charge fees.

For yet another example, Andy Cheung, head of operations at OKEx, told CoinDesk his exchange does not charge startups for IEOs even though the company received hundreds of applications.

Speaking of how IEOs attract traction for the exchange's native token, Cheung said sale participants must have a minimum of 500 OKB tokens to qualify to participate in the IEO. Furthermore, the OKEx IEOs, expected to occur at least once a month for the rest of the year, will only accept OKB tokens.