Core Viewpoint - Coinbase is set to host the first digital token sale in the U.S. in seven years, allowing retail traders to participate in public token sales, also known as initial coin offerings (ICOs) [2][4]. Group 1: Token Sale Details - The first token sale will occur from November 17 to November 22, 2023, allowing investors to buy digital tokens before they are listed on the exchange [2]. - The token sale design aims to prioritize broader distribution and limit asset concentration among large purchasers, ensuring that true supporters receive higher allocation priority [2][4]. - The allocation process will favor participants requesting smaller amounts first, progressively filling larger requests until the supply is exhausted [3]. Group 2: Regulatory Context and Market Evolution - The launch of this platform marks the first public token sales for retail traders in the U.S. since 2018, following a period of regulatory scrutiny due to numerous fraud cases associated with ICOs from 2016 to 2018 [4][5]. - The previous ICO market was characterized by a lack of accountability, with many tokens being unregistered securities or outright frauds, leading to a decline in ICOs over time [5]. - The current market environment is more mature, with projects and their teams demonstrating more credibility than in the past, as noted by Scott Shapiro, head of trading at Coinbase [6].

Core Insights - Initial coin offerings (ICOs) are making a comeback with new features aimed at improving investor selection and reducing fraud [1][2] - Legion, a fundraising project, is partnering with the crypto exchange Kraken to facilitate token sales to a broader audience while implementing a scoring system to evaluate potential investors [1][3] Group 1: ICO Landscape - The previous ICO boom in 2017 and 2018 saw over 2,000 projects raise approximately $13 billion, but it was marred by scams resulting in losses of at least $1.3 billion [2] - Legion aims to address these issues with its Legion Scores, which will help filter out bots and dishonest token buyers [2] Group 2: Legion's Strategy - Legion Scores are designed to prioritize contributions to the industry over the size of an investor's wallet, promoting a fairer investment environment [3] - Tokens will be available on a first-come, first-served basis to Kraken's user base of over 15 million, with immediate listing on the exchange [3] Group 3: Future Outlook - Legion's co-founder expressed confidence in scaling their offerings, indicating a shift in focus from product development to distribution [4] - The first token sale in collaboration with Kraken is yet to be announced, but the partnership signifies a notable evolution in the ICO space [4][6]