The cryptocurrency exchange Coinbase has introduced a new platform that allows investors to purchase tokens before their official listing on the exchange. The service implements updated rules and enhanced protection for market participants.
This is reported by Business • Media
New Approach to Initial Token Sales
Coinbase plans to organize public token sales on a monthly basis. Each investor will have a week to submit their application to purchase tokens, after which a special algorithm will distribute the assets among participants, ensuring a fair and broad allocation. Purchases will be made in the USDC stablecoin issued by Circle Internet Group. To participate, one must be a fully verified Coinbase user and meet regulatory requirements.
The platform will be the first such opportunity for American retail investors since 2018, when the initial coin offering market experienced a sharp decline and increased regulatory scrutiny.
Monad – The First Project on the New Service
The first company to utilize the new platform will be the blockchain startup Monad. The token sale for this project is scheduled for November 17. According to the team’s information, the token distribution will occur as follows:
- 38.5% — ecosystem development;
- 27% — team;
- 19.7% — investors;
- 7.5% — public sale;
- 4% — Labs Treasury;
- 3.3% — airdrop.
Projects planning to list their tokens through the new platform will undergo thorough vetting based on criteria such as user interest, the reputation of the founders, tokenomics, and the asset unlock schedule.
“In 2017, the market was so young that no one had real cryptocurrency experience before launching a token. Now teams have more than just a white paper.”
As emphasized by Coinbase’s Head of Trading Scott Shapiro, the new system will include special mechanisms to protect investors. For example, participants who quickly sell their acquired tokens will receive smaller allocations in future token sales. Additionally, project founders and their affiliates will be prohibited from selling tokens for six months after the public offering.
The platform will be available to most users worldwide at launch, and Coinbase plans to expand its capabilities and reach in the future.