Coinbase earlier today announced that retail investors now have a new opportunity to buy early in digital tokens.
The exchange has introduced a new platform that enables users to purchase tokens before their launch on the market
ICO for retail investors
Coinbase is establishing a new benchmark for how projects are brought to market by developing a fair and open token sales platform for both issuers and consumers.
This implies that users will have fair access to their preferred tokens with transparent conditions and explicit disclosures. For issuers, this entails creating deep exchange liquidity, distributing to Coinbase’s worldwide retail user base, and designing sales in a way that maximises the project’s long-term viability.
At launch, Coinbase is offering access to the retail community in the majority of the world’s regions, with intentions to grow in the future. Users in the U.S. will now be allowed to participate broadly for the first time since 2018, which is a big victory for the U.S. cryptoeconomy.
Also Read: Coinbase In Final Talks To Acquire Stablecoin Infrastructure Startup BVNK For About $2B
The leaders quote
Brian Armstrong, the CEO of Coinbase, said, “Our team spent a long time studying all of the things wrong with token launches, and designed a new model to try to fix all of those things. Token sales on Coinbase are designed to give users early access to their favourite projects and reward real, loyal users through our allocation algorithm. Our systems also penalise behaviour like flipping, aiming to align incentives between projects and their community.”
Details on the token sale
Coinbase’s token sale approach puts the many ahead of the few, in contrast to “first-come, first-served” sales that don’t reach a project’s actual community.
The first is “Filling up from the bottom.” Its methodology is intended to prevent asset concentration among big buyers and encourage wider dispersion.
As a result, individuals who make the smallest requests will usually receive a fuller allotment, while bigger demands will be gradually filled until the supply runs out.
“The Request window” comes in second. Coinbase-hosted token sales will be available for a limited period of time (e.g., one week). At any time throughout this timeframe, users are welcome to come in and request tokens. The method decides everyone’s final allocation once the window ends.
“Prioritising users” is the third. The exchange developed a selling design that gives genuine backers the highest allocation priority.
Smaller allocations may be given to users who sell their tokens fewer than 30 days after they are published. This is intended to give genuine users of a project priority access.
In order to guarantee that every token sale has the full support and attention of their platform and community while upholding the highest standards, coinbase will organise about one token sale per month.
The crypto exchange wants to add functionality to the token sales platform in the upcoming months, such as increased allocations for issuers’ target user groups and limit orders.