Coinbase breaks a six-year barrier and grants US retail traders mainstream access to public token sales. Starting with Monad, this move will reshape America’s participation in the nascent crypto economy.
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- Coinbase has resumed US token sales for the first time since 2018.
- This initiative aims to set a “new standard” for sustainable and transparent token issuance.
- The first sale, Monad, will run from November 17th to 22nd and will offer 7.5% of the total supply.
In a prepared statement on November 10, cryptocurrency exchange Coinbase said it has launched a dedicated token sale platform and the first sale of its layer-1 blockchain Monad is scheduled for November 17-22.
The initiative is designed as an end-to-end launchpad, directly handling distribution from initial sale to secondary market listing on the exchange. A key feature of the platform is an allocation algorithm that prioritizes smaller orders to encourage broader distribution and discourage whale domination.
“Our algorithm is designed to encourage broader distribution and limit asset concentration among large buyers. This typically results in a more complete allocation for participants requesting the lowest amount while gradually fulfilling larger requests until supply runs out,” the Coinbase team said in a statement.
Coinbase tests new standard for token sales
Coinbase’s resumption of US token sales comes with a carefully designed framework that the exchange describes as a “new standard” for how projects are brought to market. The initiative includes a “request window” in which users have a limited period of time (in this case, one week) to submit an order.
The key differentiator is that timing within this window is irrelevant. Requests submitted on the first day will not take precedence over requests submitted on the last day. When the window closes, a proprietary “fill from below” algorithm takes over and systematically fully satisfies smaller requests before gradually moving on to larger requests.
According to Coinbase, this approach aims to limit asset concentration and encourage a broader and more dispersed holder base from day one. Further strengthening this community-centric approach is a mechanism that directly rewards long-term holding.
The token sale platform is designed to identify and prioritize “true supporters.” Users who sell their token allocation immediately after starting trading on the secondary market, especially within the first 30 days, may see their allocation reduced in subsequent sales on the platform.
In terms of transparency, Coinbase is imposing strict new requirements on token issuers themselves. This includes a mandatory six-month lock-up period for the issuer and its affiliates, prohibiting them from selling the tokens over-the-counter or on the secondary market immediately following the sale. According to the announcement, any exceptions would require disclosure and approval from Coinbase.
MON token sale at Coinbase
The effectiveness of Coinbase’s news system will face its first major test with the sale of Monad. The Layer 1 blockchain project has committed 7.5% of the total supply of MON tokens to public sale at $0.025 per token. This structure gives Monad a fully diluted valuation of approximately $2.5 billion and expects to raise up to $187.5 million from the sale.
The Monad team welcomed the initiative, with co-founder Keone Hong stating that the public sale would allow them to “expand the reach of Monad by extending MON’s distribution into the hands of millions of ordinary people” as the cryptocurrency grows beyond its primary users.