Coinbase Needs to Dominate the Web Capital Markets

In 2017, crypto startups raised greater than $20 billion by means of a frenzy of Preliminary Coin Choices.

It was the age of the ICO increase.

I bear in mind simply how wild it was, just like the top of the dotcom increase. Buyers have been shopping for digital tokens tied to concepts that hardly existed, whereas startups with nothing however a whitepaper have been elevating tens of millions in a single day.

But, for a quick interval, it appeared just like the web had discovered a approach to exchange Wall Road.

Then the bubble burst.

By 2018, practically half of all ICOs had failed.

Billions in investor capital had evaporated, and regulators everywhere in the world began cracking down laborious on crypto.

That might’ve been the top of the experiment. However final week, Coinbase determined to resurrect it…

And possibly repair what went unsuitable.

The ICO Is Again

On November 10, Coinbase introduced a brand new platform that lets customers purchase crypto tokens earlier than they record on the alternate.

The corporate calls it: “a extra sustainable and clear method for initiatives to distribute tokens.”

In different phrases, we’re shifting into ICO 2.0. However this time there will probably be extra guidelines.

After all, platforms like Pump.enjoyable have already been working on this territory for some time, however in a much less formal and extra dangerous method. Constructed on Solana, Pump.enjoyable lets anybody spin up a brand new token in minutes and begin buying and selling it virtually instantly.

And the outcomes have been staggering. As of mid-2025, the platform had spawned greater than 11.9 million tokens and generated over $780 million in income.

However most of those tokens by no means made it previous the primary day.

That’s as a result of Pump.enjoyable is constructed for pace, not endurance. Anybody can launch a token, with little vetting or accountability.

And most do it for the hype. The tokens generated on Pump.enjoyable are usually memecoins, though the platform has just lately pivoted in direction of launching extra utility tokens.

Coinbase is approaching its ICO platform in another way. If Pump.enjoyable is the on line casino of the crypto world, Coinbase desires to be the inventory alternate.

In keeping with the corporate, It plans to host one public token sale monthly as this system scales.

First up is Monad Labs, a brand new Layer 1 blockchain aiming to rival Solana’s transaction speeds. Monad will promote 7.5 billion MON tokens (7.5% of its provide) at $0.025 every, elevating about $187 million if absolutely subscribed. The sale will open on November 17 and run till November 22.

Consumers can make investments as little as $100 or as a lot as $100,000, however they have to use USD Coin (USDC). That’s the stablecoin backed one-to-one by U.S. {dollars} we’ve been speaking about rather a lot just lately.

When the sale closes, Coinbase will use an algorithmic allocation mannequin that favors smaller buyers. The corporate calls it “fill from the underside.”

And to me, that’s what makes this new platform so thrilling. It offers on a regular basis buyers a good shot at getting in early, with out being crowded out by greater gamers.

Every venture should additionally submit tokenomics disclosures and settle for a six-month lockup earlier than crew members can promote their very own tokens.

This new platform represents a serious shift for the corporate. However why is it taking place now?

As a result of the crypto trade is ravenous for brand new funding fashions.

International token fundraising peaked at practically $20 billion in 2018, then collapsed to underneath $1 billion by 2020. And it has by no means absolutely recovered.

Enterprise capital has crammed the hole — in 2024, VC companies invested about $11.5 billion into crypto and blockchain startups — however a lot of that cash nonetheless flows to a handful of elite initiatives.

In the meantime, retail buyers have been shut out.

However Coinbase is betting {that a} structured, clear platform can change that.

It’s additionally a sensible method for the corporate to evolve its enterprise. Buying and selling volumes on Coinbase are down roughly 40% since 2021, and buying and selling charges throughout the trade maintain shrinking as rivals like Binance and Kraken slash prices to compete.

So Coinbase is shifting into the identical profitable territory that funding banks occupy in conventional markets…

Origination.

By internet hosting token gross sales, Coinbase turns into each the underwriter and the alternate, taking charges from issuers whereas locking customers deeper into its ecosystem.

It’s the digital equal of Nasdaq and Goldman Sachs rolled into one. And it’s a transfer that matches completely into Coinbase’s broader technique.

Earlier this yr, the corporate launched x402, an web fee protocol that lets one piece of software program pay one other utilizing USDC.

Now it’s including one other layer with the flexibility for software program to lift capital straight from customers.

That is what I imply after I discuss creating a real web capital market — a world system the place anybody can fund innovation with out banks or borders.

In sensible phrases, it means a developer in Kenya may immediately increase cash — transparently, and in {dollars} — from a consumer in Kansas.

That’s the world Satoshi Nakamoto imagined when he launched Bitcoin.

And Coinbase is making an attempt to make it actual, one token sale at a time.

Right here’s My Take

Coinbase appears to be launching its new platform cautiously.

I consider that’s the best strategy. As a result of the SEC nonetheless believes that the majority token gross sales qualify as securities.

Even with the guardrails Coinbase has put in place, it may nonetheless face regulatory scrutiny. The corporate says it has “consulted extensively” with regulators, nevertheless it’s unclear if this new platform has formal approval.

And market danger is one other issue right here. ICOs are sometimes risky. If the primary few gross sales flop or if these initiatives don’t ship, it may kill enthusiasm for this new platform.

Nonetheless, it may very well be an important experiment in crypto finance because the launch of Ethereum.

If Coinbase’s mannequin succeeds, it may open a regulated path for public participation in early-stage initiatives. That might imply quicker funding for builders and broader possession for customers.

It might signify a real bridge between conventional markets and decentralized finance.

In different phrases, the web may lastly have its personal IPO system. And everybody will be capable to participate in funding the long run.

Regards,

Ian King
Chief Strategist, Banyan Hill Publishing

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