Coinbase Unveils First U.S. Crypto Token Sale Platform Since 2018, With Monad Set To Lead the Debut

Coinbase has recently announced the launch of a new platform that will enable its customers to buy digital tokens prior to their debut on its exchange. The first token sale or ICO, Monad, will run on the Coinbase platform between November 17 and 22. 

Coinbase Launches Crypto Token Sale Platform

Coinbase Global, the biggest crypto exchange in the United States, has announced the launch of a new platform to facilitate the sale of tokens before they get listed on its exchange. In a blog post, Coinbase explained that its platform will solve the problem token issuers now face in getting their tokens into the hands of real users.

The new platform from Coinbase will be the first major attempt since 2018 that retail traders in the U.S. will be permitted to participate in public token sales, also known as initial coin offerings (ICOs). While thousands of projects raised funds via ICOs between 2016 and 2018, coming under the regulation of the SEC, reduced the number of projects taking this route. 

The platform will take a different approach from regular ‘first-come, first-served’ token sales that are often hijacked by a few huge investors. The platform was designed with equity in mind to give actual users of a project the chance to participate in token sales.

How the Coinbase Token Sale Platform Will Work

According to the blog post, the platform will start with one token sale per month. Coinbase will use its algorithm to determine how tokens are allocated to investors. There will be a one-week window where investors will submit purchase requests for the token. Once the window is closed, the algorithm will randomize the tokens and will strive to achieve widespread and fair distribution. 

It will limit asset concentration among large purchasers. To be able to use the platform, investors must be fully registered and KYC-compliant Coinbase users. The listed tokens will be paid in USD Coin (USDC), the dollar-pegging stablecoin offered by Circle.

On the part of the projects listing their tokens, Coinbase will evaluate them based on a set of criteria, including user interest, record of the founding team, tokenomics, and vesting schedules. At launch, the token sales platform will be accessible to Coinbase users in most regions, and the functionality will be expanded later.

Monad Will Be the First Token on the Platform

After the launch of the platform, Monad announced that its MON tokens would be the first public sale conducted on Coinbase. According to Monad, the sale will be open between November 17th and November 22nd. The token will be open to Coinbase users in over 80 countries, including the U.S. 

Monad will raise $188 million through token sales to retail investors. However, in line with Coinbase’s push for equity, a user will be limited to bids of $100,000 in this token sale. The return of ICOs comes amidst growing demand for early-stage crypto investment opportunities in the more regulated environment that we have now, compared to 2016-2018.