Following the announcement of Launchpad by the US -compliant crypto trading platform, Monad's approach differs somewhat from traditional crypto ICOs. According to documents on Coinbase, Monad ICO was the first large-scale institutional ICO to publicly disclose a complete list of market makers, the scale of lending funds, and the execution cycle, and to establish third-party monitoring.
In the past, information like this from the crypto project TGE was usually only circulated internally. This time, however, the project clearly disclosed its market expectations and liquidity arrangements for the initial listing of the token, providing greater transparency and comparable to a traditional company's equity IPO.
Market maker allocation amount and term
MF Services has signed lending agreements with five market makers, with the following sizes and terms:
- CyantArb loan of 50,000,000 MON, term of 1 month.
- Auros offers a loan of 30,000,000 MON for a term of 1 month.
- Galaxy loan of 30,000,000 MON, term of 1 month.
- GSR loan of 30,000,000 MON, term of 1 month.
- Wintermute offers a loan of 20,000,000 MON for a term of 1 year.
The main contract is for a period of one month and can be renewed monthly.
Third-party verification and review of idle funds
The document states that Coinwatch, a third-party monitoring agency, will verify the actual usage of the market-making lending tokens, including idle balances in CyantArb, Auros, Galaxy, and GSR accounts. This arrangement helps reduce concerns about token misappropriation or inefficient allocation, allowing the market to more clearly assess the effectiveness of market making and the destination of funds.
Initial liquidity: Maximum supply utilization of 0.20%
MF Services may use up to 0.20% of the initial total supply of MON to provide initial liquidity to one or more decentralized exchanges. This is a short-term and limited support aimed at improving token accessibility and price stability during the initial listing period, but it also assumes the inherent risks of the DeFi market. The amount of market maker lending and liquidity injections will be included in the "Ecosystem Development" allocation.
What will the encrypted Launchpad look like in the future?
Compared to most token issuances that only briefly describe the "market-making arrangements," Coinbase this time broke down the list, scale, and duration, along with third-party monitoring and a renewable contract schedule, allowing outsiders to observe the market-making behavior and its effectiveness more concretely.
For investors, transparency helps them understand the technical aspects of short-term fluctuations; for project teams and market makers, public discipline and external verification mechanisms will become a common benchmark for subsequent cost and efficiency assessments. These practices can be seen as standardization for future cryptocurrency public offerings.
