Coinbase Stock Rises 4.87% After New Token Sales Platform Announcement

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Coinbase unveils a monthly token sales platform featuring algorithmic allocation to prevent concentration among large buyers, marking its first US-accessible sale since 2018.

Cryptocurrency and digital asset exchange Coinbase has announced the launch of a new token sales pre-listing platform.

The firm’s stock received a boost on the news, rising approximately 4.87% over the previous day’s close of about $309.16 to a morning high of $324.22 before retreating to $315.73 as of the time of this article’s publication.

Coinbase stock remains up about 2% after the announcement | Source: TradingView.

The Antithesis of First Come, First Served Coin Sales

According to a Nov. 10 blog post, Coinbase says it will host about one token sale per month on the new platform with end-to-end, prioritized access through an algorithm designed to “promote broader distribution and limit asset concentration among large purchasers.”

The firm says this will “typically result in more complete allocation for participants requesting the lowest amounts while progressively filling larger requests until the supply is exhausted.”

Coinbase also plans to add limit orders and higher allocations for issuers’ target user bases in the coming months.

Monad’s MON coin has been tapped as the first token to launch on the new platform. Its debut is slated for Nov. 17 and will be accessible in over 80 countries including, for the first time since 2018, the US.

Similar token sales were previously discouraged by the US government and, in many cases, outright banned when the SEC began issuing cease-and-desist letters to multiple organizations over their token sales offerings or initial coin offerings (ICOs).

Going forward, Coinbase says its new token launch platform will enforce equitable debuts by filling requests from the bottom up, ensuring purchase windows are open for a limited time, and waiting until all orders are placed to algorithmically determine final allocations.

The platform will also employ community retention tools that reward users for holding tokens they purchase through the program with those who sell tokens within 30 days of purchasing possibly receiving smaller allocations in subsequent sales.

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