TLDR
- Coinbase reopens U.S. token sales after a six-year pause with the launch of a new platform.
- The first token sale on Coinbase’s platform will feature Monad, a layer-1 blockchain.
- The sale of Monad tokens will run from November 17 to November 22.
- Coinbase’s platform uses an allocation algorithm that prioritizes smaller orders for fairer distribution.
- Users have one week to submit purchase orders, with no priority based on the time of submission.
Coinbase is launching a new platform to support U.S. retail participation in public token sales. This marks the first token sale in the U.S. for Coinbase in over six years. The platform will debut with the sale of MON tokens from the Monad blockchain, scheduled for November 17-22. This move could reshape the landscape for American crypto traders.
Coinbase Launches Token Sale Platform
On November 10, Coinbase announced the launch of its token sale platform. The first sale will feature Monad, a layer-1 blockchain. This marks a major shift for U.S. retail investors, who have been without direct access to such sales for years. The platform will handle everything from the initial sale to secondary market listings on Coinbase’s exchange.
The platform’s allocation algorithm is designed to prioritize smaller orders. This feature helps ensure a broader distribution of tokens. Coinbase stated,
“Our algorithm promotes more complete allocation for participants requesting the lowest amounts.”
This is done before progressively fulfilling larger requests, ensuring fairness across buyers.
The token sale will follow a “request window” system. Participants have one week to submit purchase orders for Monad’s tokens. Timing within this window will not affect order priority, ensuring equal treatment for all participants.
Promoting Fairer Distribution and Long-Term Holding
To further ensure fairness, Coinbase is implementing strict measures. The exchange will prioritize
“true supporters” by rewarding long-term holders. “Users who sell their tokens within the first 30 days may face reduced allocations in future sales,” Coinbase explained.
Coinbase is also implementing a mandatory six-month lock-up period for token issuers and affiliates. This prevents the immediate sale of tokens on secondary markets. Any exceptions to this rule must be disclosed and approved by Coinbase.
The Monad sale is expected to raise up to $187.5 million, based on its pricing structure. The team behind Monad is excited about this new platform, as it will allow for broader distribution of their MON token. According to Keone Hon, co-founder of Monad,
“This could extend the reach of Monad by putting MON into the hands of millions of regular people.”
This sale will be a key test for Coinbase’s new platform. It could pave the way for future sales on the exchange. Coinbase is positioning itself to redefine how tokens are launched in the U.S. crypto market.
