Coinbase is introducing a regulated platform that allows US retail investors to participate in primary token offerings for the first time in years. The exchange plans to host approximately one token sale per month, kicking off with the blockchain protocol Monad, whose token sale will run from Nov. 17 to 22.
During the one-week sale window, users can submit purchase requests, which will be allocated by an algorithm that prioritizes smaller investors first, gradually fulfilling larger orders to ensure broad participation. To curb speculative dumping, the platform will reduce future allocations for users who quickly sell their newly acquired tokens.
All purchases will be settled in USDC, the dollar-backed stablecoin issued by Circle. Investors must have verified Coinbase accounts and meet the platform’s compliance requirements.
Lockups and issuer requirements
Tokens launched on the Coinbase platform will face a six-month lockup period, preventing founders and affiliates from selling on secondary markets or over-the-counter (OTC) without Coinbase’s approval and public disclosure. While buyers can participate for free, issuers pay a fee based on the total USDC raised, along with any listing costs.
A return to retail token sales after the ICO boom
The launch marks the first broad opportunity for US retail investors to participate in public token sales since the peak of the 2017–2018 initial coin offering (ICO) era. ICOs allowed blockchain projects to sell newly created tokens directly to the public to finance development.
During the ICO boom, token sales raised $13.7 billion by the first half of 2018, more than double the previous year. However, regulatory scrutiny quickly intensified. The US Securities and Exchange Commission (SEC) indicated in 2017 that some tokens could be classified as securities under the Howey test. By 2018, auditing firm Ernst & Young found that 86% of the major ICO tokens were trading below launch prices, with nearly a third losing almost all value.
The combination of regulatory pressure, widespread investor losses, and a harsh bear market brought the ICO era to an end making Coinbase’s new platform a notable revival of regulated retail token offerings.