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Investing.com -- Coinbase Global announced plans to launch a new platform allowing individual investors to purchase digital tokens before they are listed on the cryptocurrency exchange, driving its shares up 4% in morning trading.
The platform will host approximately one token sale monthly, using an algorithm to determine token allocation to investors. Participants will have a one-week window to submit purchase requests.
"Token issuers coming to market today struggle to get their tokens into the hands of real users while building deep exchange liquidity. Coinbase is changing that," the crypto exchange stated in a blogpost.
According to Coinbase, this launch will provide the first widespread opportunity since 2018 for U.S. users to participate in public token sales.
Initial coin offerings were a popular fundraising method during the 2017 crypto boom but declined after regulators raised concerns about investor protection and disclosure.
Coinbase plans to enhance the token sales platform in coming months with features including limit orders and higher allocations for issuers’ target user bases.
Investors will make token purchases using USD Coin, a dollar-pegged stablecoin issued by Circle Internet Group, according to the Wall Street Journal, which first reported the launch.
Blockchain startup Monad will be the first project to offer its token through the platform next week.
The expansion comes as growing interest from retail and institutional investors has boosted digital asset trading, prompting established players in the sector to expand their services to tap into the multi-trillion dollar market.
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