Coinbase Global just announced a brand-new platform that will let everyday investors buy digital tokens before they hit the main cryptocurrency exchange. This news sent Coinbase’s shares up 4% in morning trading, underscoring the market’s excitement about the new offering.
More and more people, both individual investors and big financial firms, are getting interested in digital assets. This growing excitement has boosted trading in cryptocurrencies and other digital items. Because of this, big companies in the crypto world are looking for new ways to serve this huge, multi-trillion-dollar market. Coinbase’s new platform is a direct response to this trend.
Coinbase plans to host roughly one token sale each month on this new platform. They will use a special computer program, an algorithm, to decide how to give out these tokens fairly to investors. If you’re an investor, you’ll have a one-week window to put in your request to buy tokens.
In a blog post, Coinbase explained why this platform is important. They said, “Today, companies launching new tokens often find it hard to get their tokens into the hands of real users while also creating a lot of trading activity on exchanges. Coinbase is fixing that problem.”
This new platform will give U.S. users their first major opportunity since 2018 to participate in public token sales. Back during the 2017 crypto boom, these “Initial Coin Offerings” (ICOs) were a popular way for companies to raise money by selling new tokens. However, this trend slowed down when regulators became concerned about protecting investors and ensuring clear information.
Coinbase plans to add more features to this token sales platform in the coming months. These additions will include features like “limit orders,” which let investors set a specific price they’re willing to pay, and larger allocations for a project’s key users.
According to the Wall Street Journal, which first broke the news, investors will use USD Coin (USDC) to pay for their token purchases. USDC is a stablecoin pegged to the U.S. dollar and issued by Circle Internet Financial. The report also mentioned that Monad, a blockchain startup, will be the very first project to offer its token through this platform next week.
