Coinbase reopens US token sales after six-year hiatus

Coinbase is shattering a six-year barrier, granting U.S. retail traders mainstream access to public token sales. The move, starting with Monad, reshapes American participation in the nascent crypto economy.

In a prepared statement on Nov. 10, crypto exchange Coinbase said it is launching a dedicated token sales platform, with the first sale for the layer-1 blockchain Monad scheduled from Nov. 17-22.

The initiative is designed as an end-to-end launchpad, handling distribution from the initial sale directly to secondary market listing on its exchange. A key feature of the platform is an allocation algorithm that prioritizes smaller orders to promote broader distribution and deter whale dominance.

“Our algorithm is designed to promote broader distribution and limit asset concentration among large purchasers. This will typically result in more complete allocation for participants requesting the lowest amounts while progressively filling larger requests until the supply is exhausted,” the Coinbase team said in the statement.

Coinbase tests a new standard for token sales

Coinbase’s reopening of U.S. token sales comes with a carefully designed framework the exchange describes as a “new standard” for how projects go to market. The initiative includes a “request window” where users have a finite period, in this case one week, to submit their purchase orders.

The crucial differentiator is that timing within this window is irrelevant; a request submitted on the first day holds no priority over one submitted on the last. Once the window closes, the proprietary “fill from the bottom” algorithm takes over, systematically fulfilling smaller requests in full before moving progressively to larger ones.

According to Coinbase, this approach is meant to limit asset concentration and promote a wider, more decentralized holder base from day one. Further reinforcing 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 allocations shortly after they begin trading on secondary markets, particularly within the first 30 days, may see their allocations reduced in subsequent sales on the platform.

On the transparency front, Coinbase is imposing rigorous new requirements on token issuers themselves. These include a mandatory six-month lock-up period for issuers and their affiliates, preventing them from selling tokens over-the-counter or on secondary markets immediately after the sale. Any exceptions would require public disclosure and Coinbase’s approval, according to the announcement.

MON token sale on Coinbase

The efficacy of Coinbase’s news system will face its first major test with the Monad sale. The layer-1 blockchain project has committed 7.5% of its total MON token supply to the public sale, priced at $0.025 per token. This structure sets a potential fully diluted valuation of approximately $2.5 billion for Monad, with the sale poised to raise up to $187.5 million.

The Monad team has welcomed the initiative, with co-founder Keone Hon stating that the public sale could “extend the reach of Monad by extending the distribution of MON into the hands of millions of regular people,” aligning with growing crypto beyond its primary audience.