Coinbase is reintroducing U.S. retail investors to regulated crypto fundraising through a new platform dedicated to primary token offerings, marking the first such opportunity since the 2018 ICO boom. The American exchange announced it will launch the initiative later this month, aiming to restore public participation in early-stage crypto projects under strict compliance controls. The first token to debut on the new platform will be from Monad, a blockchain protocol whose sale will run from November 17 to 22, as Bitzo reported. Coinbase plans to host roughly one token sale per month going forward, creating a structured, recurring schedule for new digital asset launches. A Fairer Model for Token Distribution Each token sale will be open for one week, during which verified users can submit purchase requests. Once the sale period ends, Coinbase’s allocation system will prioritize smaller buyers first, gradually expanding to fill larger orders. This approach, the company said, is meant to ensure broader participation and prevent large investors from dominating the process. Coinbase has also added a mechanism to discourage rapid speculative selling. Users who immediately offload their tokens after launch will see their allocation potential reduced in future offerings. The exchange described the system as a way to promote fairer distribution and reduce “dumping” behavior that has historically plagued public token sales. Compliance and Settlement in USDC Only verified Coinbase users will be eligible to participate, and all purchases will be settled in USDC, the dollar-backed stablecoin issued by Circle. Token issuers listing through the platform will face a six-month lockup period, preventing project founders and affiliates from selling or transferring tokens on secondary markets without Coinbase’s prior approval and public disclosure. This restriction aims to maintain price stability and protect investors from insider selling shortly after launch. Participation will be free for retail buyers, but token issuers will pay a fee based on the total amount of USDC raised, along with any associated listing costs. Renewed Access for U.S. Retail Investors The move represents a major milestone for the U.S. crypto sector, where retail access to regulated public token offerings has been virtually nonexistent since 2018. Coinbase’s regulated approach seeks to fill a long-standing gap between private fundraising rounds—typically reserved for venture capitalists—and the broader investing public. By implementing compliance safeguards and transparent rules, the platform could set a precedent for how token sales are conducted in the United States going forward. Remembering the ICO Boom and Its Collapse Coinbase’s new offering arrives years after the spectacular rise and fall of the Initial Coin Offering (ICO) era. ICOs emerged in 2017 as a novel method for blockchain startups to raise capital directly from the public by selling newly minted tokens. By the first half of 2018, ICOs had raised an estimated $13.7 billion , more than double the total collected in 2017. However, the boom quickly attracted regulatory attention. In 2017, the U.S. Securities and Exchange Commission (SEC) signaled that some tokens could qualify as securities under the Howey test , bringing them under existing investment laws. A 2018 report by Ernst & Young examined over 140 major ICOs and revealed that 86% of tokens were trading below their launch prices within a year, while nearly a third had lost almost all their value. The combination of regulatory crackdowns, investor losses, and a deep crypto bear market effectively ended the ICO frenzy. Coinbase’s Attempt to Modernize the ICO Model By introducing transparency, compliance oversight, and anti-dumping mechanisms, Coinbase appears to be reviving the ICO model with institutional-grade safeguards. If successful, the platform could usher in a new era of compliant token fundraising, bridging the gap between the innovation of crypto’s early days and the regulatory expectations of today’s markets. Earlier this month, Coinbase clashed with several US banks over a key stablecoin interest rule as part of the recently passed GENIUS Act.
