Coinbase To Launch Platform To Buy Tokens Before Exchange Listing: Report

• Coinbase plans roughly one pre-listing token sale per month using an algorithm to distribute tokens.
• The report said that purchases would be made in USD Coin and require fully verified and compliant accounts.
• It added that projects will be selected after screening for user interest, team experience, token economics, and vesting schedules.

Coinbase (COIN) is launching a new platform that allows retail investors to buy digital tokens before they are officially listed on the exchange—reviving a model reminiscent of initial coin offerings (ICOs) that surged in popularity in 2017 and 2018. 

Those early ICOs collapsed in value after prices plunged and regulators cracked down on token issuers. Coinbase’s pivot is more in line with initial exchange offerings (IEOs) –  a controlled token sale hosted by a regulated centralized exchange.

According to a report by the Wall Street Journal, blockchain startup Monad will be the first project to offer its token through the platform next week. It said that Coinbase intends to list any project that launches a token through its platform.

COIN’s stock gained more than 4% in pre-market trade on Monday. On Stocktwits, retail sentiment around the cryptocurrency exchange trended in ‘bullish’ territory amid ‘normal’ levels of retail chatter over the past day.  

How Will Coin Offerings On Coinbase Work?

Coinbase reportedly plans to conduct roughly one token sale per month on the new platform. Investors will submit purchase requests during a one-week window, after which an algorithm will allocate tokens. The system is designed to provide broad and equitable distribution among participants.

The report said that, in order to participate, investors must be fully registered with Coinbase and compliant with its policies. It added that purchases of new coins would be made using Circle’s (CRCL) stablecoin USD Coin (USDC), which is pegged to the U.S. dollar.

Which Projects Get Listed?

The report stated that projects offering tokens through the platform will be evaluated on criteria including market interest, the founding team’s track record, token economics, and vesting schedules. 

It added that Coinbase intends to make the platform accessible to individual investors in most global regions at launch, with plans to expand further over time.

Read also: OpenAI Reportedly Exploring Consumer Healthcare Push With AI Assistants And Data Tools

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