Token sales ARE so back.
The issues with existing token launches were clear: unfair access, poor price discovery, extractive systems and misaligned incentives.
Coinbase has made some improvements, but it hasn't provided a real fix.
The solution is here: The GBM IDA.
How does the IDA provide a better solution than the new Coinbase token sales?
I'm glad you asked 😃
The IDA is open to EVERYONE, not just a list of specific users that are deemed 'loyal' = fair access for all.
New tokens in an IDA start at 0, the price of the token is defined by the market demand = true price discovery.
Anyone who participates in an IDA has only two outcomes, earning USDC or winning new tokens = value creation for everyone, not value extraction for the few.
Bidding in an IDA is not only rewarding, but with a built-in Buy&Burn fund, you're actively contributing to the long term structural demand for the token = aligned incentives for every participant at every level.
Every bid is onchain, every piece of information is available, every bid affects the token price and most importantly for us - every participant in an IDA has a win-win experience.
This is the way to change token launches so that the onchain experience is positive, fair and engaging - for everyone.
We don't believe that changing the token launch model so that it rewards a different group of people based on your own rules and definitions is the way forward.
@brian_armstrong - you've already used our auction model to bid in
@songadaymann's auctions, so you're familiar with it, but we'd love to chat more about our Initial Distribution Auction (IDA) model!
The
$GBM IDA begins on the 24th November, so if you're reading this, you can experience it for yourself soon.
Token sales are so back.
Launching tokens has always been a core part of the crypto ecosystem. It’s been a source of incredible innovation and product development.
But it’s also caused serious problems - unfair access, max extraction, and misaligned incentives - all of which harm consumers and prevent crypto from growing. There have been some solid improvements (e.g. Echo/Sonar), but bad token launches in the broader ecosystem are still unfortunately common.
Our team spent a long time studying all of the things wrong with token launches, and designed a new model to try to fix all of those things. Token sales on Coinbase are designed to give users early access to their favorite projects, and reward real, loyal users through our allocation algorithm. Our systems also penalize behavior like flipping, aiming to align incentives between projects and their community.
I’m also happy to say that retail users in the United States will now be able to widely participate for the first time since 2018. We see this as a big win for the crypto-economy in the US, and a strong signal of the positive regulatory progress for crypto.
Launching a token is a big moment, and doing it right matters for everyone: the issuer, the buyers, and all of crypto. It’s about time teams have a way to do it right.