Prime brokerage platform TroyTrade is the latest project to participate in an initial exchange offering (IEO) on the Binance Launchpad. The token sale completed on December 3, raising its target of $4 million. The IEO is the second funding round for TroyTrade after it secured $10 million investment for the development of its platform during a private sale earlier this year.
Prime brokerage is fairly new to the cryptocurrency space, arriving in response to the influx of institutional investment during 2019. In the traditional financial market, firms such as Goldman Sachs provide an all-in-one brokerage solution to institutions, which TroyTrade is aiming to emulate for the cryptocurrency markets.
Users of TroyTrade’s platform will have access to a single trading interface providing global liquidity from major crypto exchanges all over the world, including Coinbase, Binance, Kraken, Huobi, BitMEX, and more.
TroyTrade will also provide a brokerage service with fast execution times and competitive fees, with margin trading and OTC services as needed. The platform also offers a comprehensive data and analytics feature to help drive investment decisions.
The token sale followed the same lottery and airdrop format as other recent sales on the Binance Launchpad platform. Under these rules, Binance users are eligible to purchase an allocation of lottery tickets determined by the value of their BNB holdings. In this case, winning tickets received 40,000 TROY tokens, worth $200 at the sale value of $0.005 per token. $150k worth of TROY have also been distributed via airdrop to participants who weren’t holding a winning ticket.
A Badge of Distinction
2019 has been a stellar year for the IEO. It emerged as a surprise contender for the crowdfunding vehicle of choice after Binance pioneered the concept back in 2017 with token sales for Bread and Gifto. However, it was in February 2019, when Binance Launchpad opened the BitTorrent IEO that the concept really took off.
Now, there are dozens, if not hundreds of exchanges operating their own version of an IEO platform. However, as the world’s biggest cryptocurrency exchange, Binance Launchpad has remained one of the most prestigious. Several Launchpad alumni have been able to leverage their Binance connection to secure partnerships or further investment.
Matic Network is a great example. The layer-2 scaling project for Ethereum quickly attracted the attention of Coinbase Ventures after it launched its IEO on Binance in April of this year. Matic has also gone on to forge partnerships with established projects including MakerDAO and Decentraland.
Elrond is another case in point, having conducted its IEO on the Binance platform back in July. The public blockchain platform was invited to join the Trusted IoT Alliance only a month later, joining heavyweights such as Bosch, Cisco, and ConsenSys. More recently, the Samsung blockchain wallet added support for the Elrond ERD token, making it easier for Galaxy smartphone users to get access to the token and decentralized applications.
Now that the token sale is complete, TroyTrade could be the latest project to benefit from the “Binance effect.”