US Token Sales To Restart After 7-Year Hiatus

US retail participation in public token sales is set to resume this month for the first time since 2018, as Coinbase launches a new regulated platform. The platform, reopening token sales, aims to avoid pitfalls of previous initial coin offerings (ICOs) and initial exchange offerings (IEOs).

Coinbase’s model uses curated projects, fixed sale windows, and algorithmic allocation settled in USDC, with guaranteed Coinbase listings. Issuers are prohibited from selling tokens for six months, and users who quickly flip allocations face reduced priority in future sales, aiming to discourage early exits.

The first sale, starting November 17, features Monad, a layer-1 blockchain project, utilizing a bottom-up allocation algorithm. Coinbase charges issuers, not participants, and frames the structure as an “IPO-lite for tokens,” emphasizing disclosures and preventing insider selling.

Unlike Binance Launchpad, which favors large BNB holders, Coinbase’s platform requires full KYC verification and has no house token requirement. Allocation is designed to broaden holder distribution and avoid concentrated mega-allocations. Coinbase plans monthly sales and guaranteed listings.

Binance Launchpad lacks Coinbase’s platform-level restrictions. Project-specific vesting exists, but Binance does not penalize users for selling allocations quickly or enforce standardized lockups for issuers.

If successful, Coinbase’s approach could lead to a broader distribution of tokens, more stable listing prices, and a stronger link between token performance and user behavior. However, potential risks remain, including regulatory scrutiny and the possibility that users will prioritize short-term gains over long-term platform participation. The first sale will serve as a key test of the model’s viability.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.