Amid the growing token launch trend, the Coinbase CEO has confirmed the trading platform will revamp its listing strategy
Brian Armstrong, Coinbase CEO, has suggested that the company, the largest crypto exchange in the U.S., must change its asset listing process. In a post on X, Armstrong noted the change has become necessary to accommodate the surge in token creation.
Coinbase CEO on Token Listing Complexity
Armstrong says that, with an estimated one million tokens created weekly, it is no longer sustainable for Coinbase or any other exchange to evaluate each token meant for listing. The sheer volume would overwhelm not just the exchanges but the regulatory bodies as well.
The Coinbase CEO suggested that the exchange adopt new strategies to handle this growing volume of token influx. He proposed shifting from approving individual tokens to a system where only problematic tokens are blocked.
A broad range of tokens are, by default, allowed to exist. However, a mechanism is set up to filter and flag problematic tokens for blocklisting through automated scans or on-chain data analysis.
For clarity, the current Coinbase listing process requires different layers of verification. These include initial review, performing due diligence, and checking for regulatory compliance. Hence, Armstrong argues that going through this layered verification approach for the exponential amount of tokens makes it impractical.
Armstrong now envisions a system where customers have a seamless trading experience. Notably, they would not need to differentiate between trades on centralized exchanges (CEX) or decentralized exchanges (DEX). The goal is to integrate DEX functionality into CEX, like Coinbase, so users can have more options.
Justin Sun’s Critique and Allegations
Armstrong’s suggestion received an immediate response from Justin Sun, Tron (TRX) founder. According to Sun, TRX, one of the top 10 cryptocurrencies by market capitalization, has remained under review for listing on Coinbase.
This pending review has lingered for about seven years. Meanwhile, during this timeframe, Tron has made remarkable progress, including achieving new all-time highs and inching closer to getting an exchange-traded fund (ETF) approval. Tron has also made massive progress and occasionally outranked leaders such as Ethereum in key metrics. Â
Sun wondered if Coinbase would eventually list TRX. He, however, pointed out that this is not peculiar to Tron but a reflection of the Coinbase’s lack of industry judgment as far as listing of new tokens.
Interestingly, on November 3, 2024, Sun, in an X post, alleged that Coinbase requested a $330 million fee from Tron to list TRX. As per the post, the fees included 500 million TRX valued at $80 million then and a $250 million BTC deposit in Coinbase Custody. However, Binance charged zero dollars for listing TRX.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.
