Monad Coinbase ICO Fallout Leaves Retail Investors Underwater

Monad launched with $400M backing and a rare Coinbase ICO, but retail investors now sit on losses as valuation pressure weighs on price.

Monad entered the market with rare hype. It had big funding rounds, speed claims and a historic Coinbase ICO that all fueled attention. 

Many expected fast gains and entered massively. However, reality moved another way. 

Price action after launch has hurt retail buyers while early backers remain well funded. Here’s how Monad reached this point and why the launch became a warning sign for everyday traders.

Monad and the Rise of a High-Value Launch

Monad started as an idea. Former Jump Trading engineers wanted to build a faster Ethereum-style chain and spent three years on development. 

Venture firms noticed early and early last year, Monad Labs closed a $225 million Series A round with Paradigm leading the raise. Electric Capital and Greenoaks joined and the deal valued the company at $3 billion before mainnet activity began.

This massive number changed everything that followed as venture firms saw long-term infrastructure value and entered lockup agreements of three to five years. 

On the other hand, Retail traders saw a token that was already priced in success and that difference in time horizon mattered.

A Coinbase ICO Breaks New Ground

Coinbase opened a rare door in November of this year and allowed United States retail users to join the primary token sale. It even performed identity checks and provided clear rules that framed the event as safe.

At the end of the sale, Monad raised $187.5 million as each token sold for $0.025, with over 85,000 verified users joining.

Coinbase promoted fairness and its marketing focused on trust and compliance. Many buyers also viewed this ICO as a chance to join early without shady risks.

Early Price Action Brings Hope

The Monad mainnet went live on November 24, and trading started soon after. The MON token reached nearly $0.06 and early buyers doubled their money on paper. Social media buzz grew fast and screenshots spread.

However, that rally did not last long.

Market conditions changed in mid-December as a wider pullback hit many assets. Monad felt extra pressure due to its supply size and trader behavior.

Price soon dropped below the ICO level and trading settled between $0.016 and $0.021 by December 24.

As of writing, every Coinbase ICO buyer now holds a loss. The token also fell more than 60% from its peak and technical charts showed a death cross, which added fear.

Related Reading: Chorus One Teams Up With Bitget to Fast-track Global Adoption for Institutional-Grade Monad (MON) Staking

The Weight of Token Supply

Total supply explains much of the struggle. Monad has 100 billion tokens, which means that a $0.025 price equals a $2.5 billion fully diluted valuation.

At $0.06, the valuation reached $6 billion and that placed Monad near established chains like Near Protocol and Aptos. Such pricing also left little room for upside.

Through it all, technology continues to be Monad’s strength. The network claims up to 10,000 transactions per second and some of its early testing supports that figure.

More than 200 decentralised apps are already deployed on the chain and eevelopers continue building.

In all, this story shows that regulation alone does not protect returns and legal access does not mean fair pricing.

The post Monad Coinbase ICO Fallout Leaves Retail Investors Underwater appeared first on Live Bitcoin News.