Coinbase makes a strong comeback in token sales, offering a regulated platform focused on transparency and compliance. However, concerns arise over Monad, the first blockchain to test this system, raising questions about fair distribution. This launch reignites a crucial debate on the future of crypto funding, amidst controversy over massive insider concentration and limited public allocation.
The Monad token distribution structure is triggering a wave of criticism among analysts and retail traders. The founding team is allocating nearly 27% of the total supply to themselves, a percentage rarely reached in the industry and well above the usual standards of 15 to 20%. Venture capital investors (VCs) control an additional 20%, acquired at entry prices significantly lower than those offered to the public.
The retail segment only has access to 7.5% during this public sale, creating a glaring imbalance between insiders and the community. This concentration of decision-making power raises questions about the network’s future governance, particularly in systems where voting depends directly on token holdings. Such distribution gives founders and VCs near-absolute control over the protocol’s evolution.
The allocation designated for ecosystem development represents 38.5% of the supply, making it the largest portion. While these reserves aim to fund strategic partnerships and stimulate adoption, they also constitute a sword of Damocles for retail investors: Progressive unlocks can lead to continuous selling pressure, diluting the value of positions acquired during the public sale.
Coinbase is betting on its reputation and strict regulatory framework to restore confidence in ICOs, a model largely discredited after the 2017-2018 debacles. The platform enforces rigorous KYC verifications, a transparent schedule, and an algorithmic allocation mechanism designed to limit front-running or manipulation.
However, these guarantees don’t resolve the fundamental problem with Monad ‘s tokenomics. Similar projects have often disappointed retail investors, who fall victim to post-TGE dumping or centralized governance decisions. The Plasma case, cited by several analysts, illustrates this scenario: A disproportionate ecosystem allocation led to a dramatic collapse of the token after its launch.
Coinbase’s involvement as a regulated intermediary certainly adds a layer of credibility and regulatory compliance. The exchange personally exposes itself by associating its name with each project launched on its platform. But this institutional backing doesn’t correct the structural imbalances in Monad’s tokenomic design. Transparency in rules doesn’t erase the fundamental inequality between participants.
This initiative revives the post-ICO debate on fairness in crypto funding. Between promises of democratization and the reality of insider concentration, Monad’s launch on Coinbase will test the market’s ability to accept or reject these new forms of regulated token sales.
Related articles:
Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
