Coinbase To Launch Platform For Pre-Listing Token Purchases, Boosting Shares By 4%
On Monday, Coinbase (COIN) introduced the launch of a brand new platform that can allow retail traders to buy digital tokens earlier than they’re formally listed on the cryptocurrency change. This initiative goals to offer “equitable entry” to a broader vary of tokens, guaranteeing clear disclosures and clear phrases for customers.
Coinbase Launches New Token Sales Platform
At the outset, Coinbase aims to supply entry to retail customers throughout most areas worldwide, with plans for future growth. Notably, this marks the primary vital alternative for US customers to take part in such token gross sales since 2018.
Unlike conventional “first-come, first-served” gross sales that always fail to have interaction a undertaking’s true neighborhood, Coinbase’s new token sale design prioritizes equitable entry for a lot of, reasonably than favoring a choose few.
Token gross sales can be open for an outlined interval, akin to one week, throughout which customers can submit their requests. Once the window closes, the algorithm will decide the final allocation for all individuals.
Coinbase has emphasised its dedication to user-centric design, stating that the brand new gross sales mannequin rewards real supporters with increased allocation precedence.
Users who promote their tokens shortly after itemizing—particularly throughout the first 30 days—might obtain smaller allocations in future gross sales, thereby prioritizing entry for “true fans of the initiatives.”
MON Token Launch Scheduled For Next Week
The change plans to host roughly one token sale every month on this new platform, using its algorithm to handle token allocations. Initial purchases can be made utilizing USD Coin, a stablecoin pegged to the greenback and issued by stablecoin issuer Circle (CRCL).
The Layer 1 (L1) blockchain Monad undertaking is about to supply its extremely anticipated MON token on this platform for the primary time subsequent week, between November 17 and 22.
In its announcement, Coinbase said that this initiative goals to deal with the challenges confronted by token issuers in distributing their tokens to real customers whereas concurrently constructing sturdy change liquidity.
The change additionally famous that initial coin offerings (ICOs), as soon as a well-liked fundraising technique throughout the 2017 crypto increase, have seen a decline attributable to elevated regulatory scrutiny over investor safety and disclosure.
Looking forward, Coinbase has plans to boost the token gross sales platform with further options, together with restrict orders and larger allocations for issuers’ goal consumer bases. This launch is described as only the start of a brand new period for token distribution.
At the time of writing, the change’s native token, COIN, was buying and selling at $316—just a little over 4% enhance on Monday. This enhance was additionally fueled by a restoration in broader cryptocurrency costs, with tokens like Bitcoin (BTC) and XRP main the best way.
Featured picture from Shutterstock, chart from TradingView.com
