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Coinbase Global (COIN) is set to launch a new platform that allows individual investors to purchase digital tokens before they are listed on the cryptocurrency exchange, which led to a 4% rise in its shares during morning trading.
The growing interest from retail and institutional investors has increased trading in digital assets, prompting established sector players to expand their services to capitalize on the multi-trillion dollar market.
New Platform Features
Coinbase will host around one token sale per month using an algorithm to allocate tokens to investors. Investors can submit purchase requests during a one-week window. The platform launch is significant as it marks the first broad opportunity since 2018 for U.S. users to take part in public token sales.Regulatory Background
Initial coin offerings gained popularity as a fundraising method during the 2017 crypto boom. However, the trend slowed after regulators raised concerns about investor protection and disclosure.Platform Enhancements
Coinbase has plans to add features to the token sales platform in the coming months. These will include limit orders and higher allocations for issuers' target user bases.Investor purchases of tokens will be made using USD Coin, a dollar-pegged stablecoin issued by Circle Internet Group.
Blockchain startup Monad will be the first project to offer its token through the platform next week.
This article has been published in reuters.com via Yahoo News.
Coinbase launches new platform for early access to digital tokens
Growing interest from retail and institutional investors has boosted trading in digital assets.
finance.yahoo.com
