Coinbase announces a change in the token listing process

Brian Armstrong, CEO of Coinbase, highlights the need to renew the token listing process. With an exponential increase in the creation of new assets, the company explores innovative solutions to simplify and optimize operations.

Let’s see all the details in this article. 

With over a million new tokens created per week, Coinbase pushes for a more efficient and automated listing approach

As anticipated, the CEO of Coinbase, Brian Armstrong, has made an appeal to review the token listing process of the exchange. 

This intervention is part of a rapidly growing sector, with about a million new tokens created every week. The goal is to adapt to an ever-evolving landscape, while ensuring transparency and efficiency.

In a recent post published on January 24, Armstrong emphasized that the current manual approach for evaluating and listing new assets is no longer sustainable. 

Coinbase, the largest cryptocurrency exchange in the United States, uses a multi-stage process that includes initial review, due diligence and compliance checks. 

However, the surge in the creation of new tokens makes this method unsuitable for the current pace.

Armstrong has proposed a shift from a model based on lists of allowed tokens to one founded on blocks, integrating automated tools such as on-chain scans and user feedback:

“We can no longer manually evaluate each token. A more pragmatic and scalable approach is necessary.”

Debates and criticisms from industry experts 

The statements by Armstrong have fueled the debate among industry experts. Justin Sun, founder of Tron (TRX), has harshly criticized Coinbase’s listing policies, accusing the exchange of a lack of fairness. 

Sun emphasized that, despite Tron being among the top ten cryptocurrencies by market capitalization, it has been excluded from Coinbase for over seven years.

An even more serious accusation came on November 4th, when Sun claimed that Coinbase would charge fees of $330 million to list TRX. 

This figure included a deposit of 250 million dollars in Bitcoin and 500 million TRX tokens, highlighting an alleged imbalance in access criteria.

Even the influencers in the sector have made their voices heard. Ansem, a well-known cryptocurrency expert, suggested that Coinbase involve professionals with direct experience in the bull and bear market: 

“With competent guidance, it would be possible to quickly identify the most promising tokens among millions of options.”

In addition to the renewal of the listing process, Armstrong unveiled another important initiative: the integration between centralized exchanges (CEX) and decentralized exchanges (DEX). 

This strategy aims to offer users a smooth and unified experience, where it is not necessary to distinguish between the two exchange models: 

“In the future, customers will not have to worry about where the transaction takes place, whether it is on a DEX or a CEX.”

This approach represents a step forward towards a more accessible and inclusive ecosystem, capable of meeting the needs of an increasingly diverse user base.

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Regulation as the key to change

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The evolution of the listing process cannot disregard a more favorable regulatory framework. 

Armstrong expressed hope for a change of course from the U.S. authorities, wishing for rules that favor innovation without hindering the development of the sector.

During the World Economic Forum in Davos, Armstrong stated that many of the conversations with market leaders focused on the implications of the regulatory policies of the new administration. 

The necessity for regulatory clarity is crucial to ensure that the United States remains competitive in the global cryptocurrency market.