Coinbase CEO Brian Armstrong is acknowledging the challenges faced by the crypto exchange when it comes to listing new coins for trading. With the constant influx of new tokens being created, Armstrong believes that the current evaluation process is no longer feasible. In a recent post on X, Armstrong expressed the need to rethink Coinbase’s listing process due to the overwhelming number of tokens being generated on a weekly basis.
Armstrong highlighted the fact that regulators also need to understand the impracticality of applying for approval for each new token individually, especially considering the sheer volume of tokens being created. He proposed a shift from an allow list to a block list, incorporating customer reviews and automated scans of on-chain data to assist customers in navigating through the plethora of available tokens. Additionally, Armstrong emphasized the importance of integrating native DEX support more deeply, allowing customers to seamlessly trade without distinguishing between decentralized and centralized exchanges.
Currently, Coinbase offers 271 assets for trading, but the exponential growth in the number of tokens being created daily is a cause for concern. According to Coinbase director Conor Grogan, the crypto space is projected to have at least 100 million tokens in circulation by the end of the year, highlighting the need for a more efficient listing process.
In a recent revelation, Armstrong admitted that Coinbase was taken by surprise by the surge of memecoins on Solana (SOL), which overwhelmed the blockchain and impacted withdrawal processing. The team at Coinbase is actively working on scaling the Solana infrastructure to address the increased activity on the chain, reassuring customers that their funds are secure and audited periodically by Deloitte.
As the crypto market continues to evolve rapidly, Coinbase is adapting its strategies to accommodate the ever-changing landscape of digital assets. By reevaluating its listing process and enhancing support for decentralized exchanges, Coinbase aims to provide a seamless trading experience for its customers amidst the growing diversity of tokens in the market.
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