Coinbase has unveiled a new platform aimed at launching primary token offerings, bringing retail investors in the U.S. back into regulated cryptocurrency sales after a pause since 2018. This initiative will initially feature blockchain protocol Monad, with its native token available for purchase from November 17–22.

Sales on this platform will last one week, allowing users to place their orders. To ensure inclusivity, the allocation algorithm prioritizes smaller investors, filling larger orders as needed. Moreover, the platform will lower future allocations for users who sell their tokens too swiftly.

Coinbase’s platform aims to create a more equitable distribution of tokens and minimize speculation. Interested participants must hold verified Coinbase accounts and fulfill compliance requirements, with all token transactions processed in USDC, a stablecoin backed by the U.S. dollar.

However, projects conducting sales through this platform will be bound by a six-month lockup period, restricting founders from selling tokens on secondary markets without prior approval from Coinbase.

This launch marks a pivotal moment, granting U.S. retail investors substantial opportunities to partake in public token sales after years of restrictions.

The Rise of ICOs

An initial coin offering (ICO) is a fundraising strategy that allows blockchain projects to sell new tokens to the public to support their development. This method gained traction in 2017 and reached its zenith in 2018, raising $13.7 billion in the first half alone, double the previous year’s total.

As ICOs gained popularity, they drew increased regulatory oversight. In 2017, the U.S. Securities and Exchange Commission (SEC) indicated that some tokens might be classified as securities under specific criteria. Further scrutiny ensued as 86% of analyzed ICO tokens fell below their launch prices in 2018.

The surge in ICOs dwindled due to stringent regulations and considerable investor losses in the subsequent years.