Coinbase has introduced a token sales platform designed to create a more structured and transparent process for distributing digital assets. The platform was designed to address ongoing challenges faced by token issuers, particularly the difficulty of ensuring general user participation while maintaining market liquidity.
The first token sale is scheduled to take place between 17 and 22 November, with plans to host additional sales roughly once per month. According to representatives from Coinbase, the initiative is designed to promote fairer access for retail traders and provide issuers with a more sustainable framework for project launches. Importantly, US-based retail users will be able to participate widely in public token sales for the first time since 2018.
A new model for distributing tokens
The new system distances itself from the ‘first-come, first-served’ format often used in earlier token offerings. Instead, Coinbase’s allocation method prioritises smaller requests before larger ones, aiming to distribute tokens among a wider group of participants. Each sale will take place during a set window, typically lasting one week, after which an algorithm determines final allocations.
Coinbase officials explained that users who hold onto their purchased tokens for longer periods may receive higher allocation priority in future sales, a measure intended to encourage genuine participation rather than short-term trading.
On the issuer side, the company is requiring enhanced disclosures regarding tokenomics, project details, and team information. It will also impose a six-month restriction on token sales by issuers and their affiliates, including over-the-counter and secondary market transactions. Coinbase will approve and disclose any such activity to ensure transparency.
The platform will not charge users participation fees, while issuers will pay a percentage-based fee on funds raised in USDC. Over time, Coinbase expects to expand the service with added functionality such as limit orders and customised allocation tools for specific user groups.
