Coinbase Global has introduced a new platform that lets retail investors buy digital tokens before they are listed on the exchange. The move revives public token sales, last seen during the 2017–2018 crypto boom, under a stricter and more transparent structure.
Coinbase Launches Platform For Token Sales
According to a WSJ report, the platform will host one token sale per month. Investors can place orders to buy over a one-week period. A token distribution will then be administered by an algorithm to equally distribute tokens among the participants. This process is designed to discourage a situation where any given investor owns too much of the outstanding supply.
Only verified and compliant users will be allowed to participate. Payments are to be made using USD Coin, the stablecoin cryptocurrency issued by Circle Internet Group. The platform announced that compliance audit will continue to be a cornerstone of the design and user experience, as expected by global regulators.
Projects that offer tokens will receive thorough scrutiny. Coinbase will evaluate interest among users, the credentials of the founding team, token economics, and vesting schedules. Only projects that meet its own internal standards will be approved for sale, the company said.
The platform will be available to retail investors in the majority of markets worldwide when it launches. The top crypto exchange will open up access more after the initial launch. Every sale is intended to draw as many investors as possible, while keeping it all regulatory clean.
The first project to launch a token on the new platform next week will be Monad, a blockchain startup. Coinbase said it would list on its platform any token for a project that debuted on this platform.
This is the first time since 2018 that U.S. retail investors can formally participate in public token sales. The earlier boom in ICOs raised billions for blockchain start-ups, but collapsed after prices crashed and fraud became widespread. Regulatory crackdowns came next, and with them, open sales were effectively over for years.
Stronger Protections Drive the New Token Era
The new system brings stronger investor protections, said Scott Shapiro, who heads trading at Coinbase. New tokens sold by users within a brief amount of time following their acquisition will receive smaller allocations in future offerings. Issuers and related companies will also be subject to a six-month lock-up on sales of their tokens publicly or privately.
He added that the absence of experienced project teams was a key difference between this market cycle and the iteration from 2017. Today is a different reality, with teams and development records much more mature. The platform revealed that this maturity cuts the risk that used to be prevalent in crypto ICOs.
The biggest U.S. crypto exchange, based on trading volume, looks to expand beyond just charging fees for trades. The company will collect participation fees from issuers, which could spur greater token variety and user activity on its platform.
This launch confirms Coinbase as a major player in blockchain finance. The platform combines creativity with serious regulatory oversight to make playing safer. It also gives an open and transparent channel between global investors and a secure way to access new tokens.
Source: https://coingape.com/coinbase-launches-token-sales-platform-for-retail/
