Coinbase is starting a new platform that lets retail investors buy tokens before they are listed on the exchange. The platform will run its first sale from November 17–22.
Importantly, this is the first time U.S. users can join public token sales since 2018. Coinbase said the platform will help spread tokens fairly and reach real users. Verified participants will pay in USD Coin and follow all compliance rules.
According to the press release, the platform will host one token sale per month. During this time, users can place orders during a one-week window. Then, Coinbase will use an algorithm to divide tokens evenly among participants.
This design prevents a few investors from owning too many tokens. Additionally, Scott Shapiro, head of trading at Coinbase, said the platform “rewards true supporters first” and reduces allocations for users who sell tokens too soon.
Coinbase requires all projects to give clear information about their tokens. As a result, users will see details about the project, team, and token rules before buying.
Moreover, issuers must follow a six-month lock-up period for any public or private token sales. Coinbase said there will be no fees for users. Instead, the company will charge issuers a percentage of funds raised in USDC for the sale only.
The platform will be available in most countries at launch. Over time, Coinbase plans to expand access even further. The first token to launch on the platform is Monad, a blockchain startup. Also, tokens sold here will be added to Coinbase’s public listings. The company said the platform combines safety, fairness, and transparency for both users and issuers.
This system comes after the ICO boom of 2017–2018. Back then, open token sales ended because of fraud and price crashes. Therefore, Coinbase aims to avoid past mistakes with stronger protections.
Shapiro said today’s projects have experienced teams and better token rules, reducing risks from earlier cycles. With this launch, Coinbase wants to make token sales safer and more open for everyone.
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