Poloniex, a Seychelles-based crypto exchange, has announced launching an initial exchange offering (IEO) platform.

In a blog post, the exchange which is partly owned by Tron CEO Justin Sun stated:

“The LaunchBase platform will collaborate closely with projects, community members and industry-wide partners to seed and promote the adoption of quality cryptocurrencies worldwide, including via the sale of tokens to eligible participants on the Poloniex platform. All participants will be subject to eligibility and screening requirements.”

Furthermore, Poloniex added that the platform will only process offerings made in TRX cryptocurrency. Accordingly, ‘JUST’, a TRON-based stablecoins lending platform, will be the first project to debut on the new IEO platform.

Launch comes at inappropriate time

The launch of the platform comes at inappropriate time as a class-action lawsuit was filed against seven crypto companies, including TRON. The plaintiff is Roche Cyrulnik Freedman which had previously taken a legal action against self-proclaimed Bitcoin inventor Craig Wright.

The law firm accuses such crypto firms of violating the U.S. securities regulations through selling unregistered securities. In addition, it claims that the companies have exploited investors’ lack of awareness as regards the crypto industry. Roche also accuses the companies of hiding the obligation to register by promoting cryptocurrencies as utility tokens.

In addition, the SEC earlier stated that it started taking a close look at IEOs over potential violations of securities regulations.

After denying any investment in Poloniex, Sun later asserted that he was one of the investors who acquired the firm.

In addition, Sun has recently promoted the platform on social media. He congratulated Poloniex on releasing LaunchBase, noting “$TRX will be the only eligible currency for purchases.”

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