Coinbase Brings Back Token Sales: But This Time, It’s Fundraising With A Seatbelt

Coinbase is all set to reintroduce token sales in the US for the first time since 2018. Its new platform is an attempt to bring back the excitement of community-driven fundraising, but with guardrails to protect investors.

The goal with this platform is to make token launches fair and transparent, and also to have a calmer and structured approach. The platform will kickstart with token offerings from Monad, a Layer-1 blockchain. Its token offering will run from 17 – 22 November. Additionally, this sale will release 7.5% of Monad’s total supply.

The project has already raised $248 million in earlier funding rounds, including a massive $225 million Series A in 2024.

Interested investors will have a whole week to place their bids using USDC, and once the window closes, an algorithm will decide who gets how much. Smaller bids will be favoured so that more people get a chance to participate.

 

Furthermore, to discourage quick flips, Coinbase has implemented a rule stating that if a trader flips his tokens within 30 days of listing, he might get a smaller share in future sales.

Also, verified users who pass compliance standards can join. Furthermore, the project must pass checks on its team, token structure, and vesting plans.

Moreover, this platform will lock tokens sold through it for six months, and Coinbase must approve any private or secondary sales. At the same time, there are no fees for buyers, but projects will pay a percentage of the funds they raise.

EXPLORE: Top 20 Crypto to Buy in 2025

Coinbase Acquires Echo: $375M Deals Signals Strategic Bet On Regulated Token Offerings

The new Coinbase token sales platform comes on the heels of its acquisition of Echo, a crypto fundraising platform that helps crypto projects raise money directly from its community, for $375 million.

Now, Echo’s tech powers Coinbase’s system, making it easier and more transparent for projects to connect with everyday investors. Broadly speaking, the launch of Coinbase’s token platform has coincided with the resurgence of public token offerings.

Just last month, MegaETH raised $50 million in only five minutes using Echo’s Sonar platform, with total pledges crossing $300 million. Meanwhile, other players like Kraken and Andre Cronje’s Flying Tulip are also joining the new wave of token sales, but with stricter rules and regulatory oversight.

Unlike the ICO boom of 2017, today’s market is much more mature, including a lot more involvement from institutions and a greater focus on transparency.

EXPLORE: Next 1000X Crypto – Here’s 10+ Crypto Tokens That Can Hit 1000x This Year

Coinbase Settles Dogecoin Sweepstakes Lawsuit For $2.5M

A federal judge has officially approved a $2.5 million settlement between Coinbase and users who took part in its 2021 Dogecoin sweepstakes.

The lawsuit claimed that Coinbase failed to clearly disclose a free mail-in entry option, making the promotion resemble an illegal lottery.

Courts rejected Coinbase’s attempt to move the case to arbitration, and the Supreme Court agreed to decide the matter in court. Eligible users who had traded $100 or more in Dogecoin during the sweepstakes will automatically receive compensation matching their trading fees.

Users with active Coinbase accounts will get the money directly in their wallets, while those who have closed their accounts will receive checks by mail.

EXPLORE: 20+ Next Crypto to Explode in 2025

Key Takeaways

  • Coinbase to reintroduce token sales in the US after 2018 through its dedicated new platform
  • Its Echo acquisition for $375 million makes the system more transparent
  • Coinbase settles Dogecoin sweepstakes lawsuit, eligible users will receive automatic fee-based compensation


The post Coinbase Brings Back Token Sales: But This Time, It’s Fundraising With A Seatbelt appeared first on 99Bitcoins.