Coinbase debuts token sale platform with Monad launch
News Summary
Coinbase has launched a new platform for primary token offerings, providing U.S. retail investors with access to regulated cryptocurrency initial sales for the first time since 2018. The platform plans to host approximately one token sale per month, beginning with blockchain protocol Monad, which will launch its native token for sale from November 17–22. Sales will run for one week, during which users can submit purchase requests. An allocation algorithm will prioritize smaller buyers to ensure broad participation and reduce speculative dumping. Participants must hold verified Coinbase accounts and meet compliance requirements, with token purchases settled in USDC. Projects launching through Coinbase will face a six-month lockup period, preventing founders and affiliates from selling tokens on secondary markets or OTC without approval and public disclosure. Participation is free for buyers, while issuers pay a fee based on the USDC raised.
Background
An Initial Coin Offering (ICO) is a fundraising method where a blockchain project sells newly created tokens directly to the public to finance its development. This funding vehicle gained traction in 2017 and peaked in the first half of 2018, with token sales raising $13.7 billion, more than double the prior year's amount. However, crypto offerings quickly drew regulatory attention. In 2017, the U.S. Securities and Exchange Commission (SEC) suggested that certain tokens could be subject to U.S. securities regulation if they met the requirements for an “investment contract” under the Howey test. By 2018, auditing firm Ernst & Young analyzed over 140 major ICOs and found that 86% of their tokens traded below launch prices, and nearly a third had lost almost all their value. The ICO boom faded after 2018 due to mounting regulatory scrutiny, widespread investor losses, and a severe bear market.
In-Depth AI Insights
What are the strategic implications of Coinbase re-entering the retail token sale market after the 2018 ICO bust and under the current (2025) regulatory environment? - Coinbase's move aims to