Breaking Coinbase Debuts Token Sale Platform With Monad Launch

Coinbase’s regulated platform reopens access to token offerings for retail investors after a hiatus of years since the peak of the ICO market.

Coinbase is launching a new platform for primary token offerings, giving retail investors in the United States access to regulated cryptocurrency initial sales for the first time since 2018.

The exchange plans to host about one token sale per month on its new platform, starting with blockchain protocol Monad, which will launch its native token for sale Nov. 17–22.

Token sales will run for one week, during which time users can submit purchase requests. After the window closes, an allocation algorithm will favor smaller buyers first, gradually filling larger orders to ensure broad participation.

The platform will reduce future allocations for users who quickly sell their newly acquired tokens, the company said on Monday.

The platform’s algorithm is designed to facilitate fairer distribution and reduce speculative dumping, according to Coinbase.

To participate, investors must hold verified Coinbase accounts and meet the platform’s compliance requirements. Token purchases will be settled in USDC (USDC), the dollar-backed stablecoin issued by Circle.

Projects launching through Coinbase will face a six-month lockup period, preventing founders and affiliates from selling tokens on secondary markets or over-the-counter (OTC) without Coinbase’s approval and public disclosure.

Participation is free for buyers, while issuers pay a fee based on the amount of USDC raised, in addition to any listing costs.

The launch marks one of the first broad opportunities for US retail investors to participate in public token sales over the past few years.

Source: CoinTelegraph