Coinbase (NASDAQ:COIN) aims to be the one financial platform to rule them all. Powered by blockchain and delivering a superior digital service that provides access to public securities, private securities, crypto, and everything a bank does but better. Coinbase will also be offering online capital formation in the form of token sales, similar to the ICO rager of the past but entirely compliant to keep the regulators happy.
In a blog post, Coinbase shared an update on their primary offerings, with the first one scheduled for November 17-22nd. These tokenized offerings will be available to Retail Investors, and Coinbase already has a gazillion users on its platform. For the immediate future, token offerings are expected to take place once a month.
Tokenized offerings will be open for a short window -expected to be around a week, thus ensuring a quick sale for issuers.
Investors will be preferred over traders as those who flip soon after a sale may be penalized down the road, thus mitigating one of the challenges (or joys for many) of the ICO period.
Smaller investors will also benefit as their buy orders will be vested first, with big orders at the end of the queue.
Issuers and those affiliated with the firm will be limited from selling any tokens for six months after the public sale. Any sale would need to be approved by Coinbase, publicly disclosed, and require lockups.
Disclosure is said to be paramount, and Coinbase takes its cut as a percentage of the USDC received by the issuer.
Coinbase says they are “building a fairer, more sustainable future for crypto from the ground up.”
Monad is the first token offering and is expected to raise $188 million.
As was widely reported, competitor Echo raised $50 million in a token offering for MegaETH last month.
More traditional securities crowdfunding platforms should be preparing for the inevitable transformation of online capital formation to a tokenized process. While several are already doing this or working on an update, those who ignore the future may be left behind as a paragraph in history books. As greater clarity emerges in the digital asset ecosystem, all investing, trading, and issuing will become tokenized. It is not that far off.
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