Coinbase CEO Proposes Revamp of Token Listing Process

Brian Armstrong, who heads the most important crypto trade in america, Coinbase, has recommended a rethink of the corporate’s token itemizing course of to answer the extremely excessive variety of digital currencies being created each week.

Based on the crypto government, roughly a million tokens are launched weekly, making it inconceivable to judge every individually.

The Itemizing Course of

Normally, Coinbase places new property by way of a multi-stage course of. First, a crypto mission requests a evaluation, offering detailed details about the token, together with its goal, know-how, and the staff behind it.

Subsequent, the evaluation is carried out, with the Coinbase staff working an preliminary evaluation to verify the token adheres to its itemizing standards. They then carry out a extra in-depth evaluation, analyzing the asset’s use case, market demand, and regulatory compliance, after which initiatives that cross are listed and moved into buying and selling mode after they fulfill liquidity situations.

Nonetheless, given the large variety of tokens being launched, Armstrong feels they can’t all be taken by way of that course of. He additionally famous that regulators can’t grant as much as 1,000,000 weekly approvals.

To unravel the issue, the CEO proposed shifting the tokens from an permit checklist to a block checklist utilizing buyer critiques and routinely scanning on-chain knowledge. He additionally burdened that Coinbase will proceed integrating native help for decentralized exchanges (DEXs), suggesting that platform customers don’t must know whether or not a commerce is occurring on a centralized or decentralized trade.

Justin Solar’s Rebuttal

Armstrong’s proposal was met with skepticism from sure quarters, with Tron founder Justin Solar questioning Coinbase’s present itemizing insurance policies. He claimed that Tron’s native TRX token had been underneath evaluation for seven years with out being listed on the platform regardless of being among the many prime ten largest cryptocurrencies by market cap, hitting new all-time highs, and even with a TRX exchange-traded product within the pipeline.

“Will Coinbase finally checklist TRX after it debuts on the NYSE and Nasdaq, or will it by no means checklist it in any respect?” Solar requested.

He concluded that the failure to checklist the token was as a result of American trade’s lack of “probably the most primary equity and business judgment.”

Coinbase had additionally confronted controversy prior to now, particularly when it delisted Wrapped Bitcoin (wBTC). Whereas the trade claimed its resolution was primarily based on a rigorous inside evaluation and considerations over Solar’s involvement within the mission, critics accused it of appearing to favor its personal tokenized BTC product, cbBTC.

In response, BiT World, a strategic accomplice of wBTC custodian BitGo, sued Coinbase, claiming the delisting was anti-competitive and had harmed its operations. Coinbase then sought the dismissal of the lawsuit, claiming there have been no guidelines compelling it to host property deemed dangerous. The courtroom is about to think about the trade’s movement on April 3.