- Coinbase revises token listing strategy due to surging numbers, introducing block list approach with customer and data insights.
- CEO Brian Armstrong promises enhanced native DEX integration, shifting from allow list to more dynamic customer review-based system.
Coinbase is set to overhaul its token listing process due to the overwhelming number of new tokens emerging each week. CEO Brian Armstrong announced via social media that the traditional method of individually evaluating each new token has become impractical due to the sheer volume, with approximately one million tokens launched weekly.
We need to rethink our listing process at @coinbase given there are ~1m tokens a week being created now, and growing. High quality problem to have, but evaluating each one by one is no longer feasible. And regulators need to understand that applying for approval for each one is…
— Brian Armstrong (@brian_armstrong) January 26, 2025
Streamlining the Listing Approach
In response to this deluge, Armstrong detailed a shift from an “allow list” to a “block list” approach. This new method will leverage customer reviews alongside automated scans of on-chain data to streamline the process. Furthermore, Armstrong has committed to enhancing the integration of native decentralized exchanges (DEX) to improve user experience and accessibility.
Coinbase’s current evaluation framework, managed by its Digital Asset Listing Group (DALG), maintains a rigorous standard to ensure that all listed assets comply with necessary legal and quality benchmarks. Presently, the platform supports 271 assets and offers numerous trading pairs, showcasing its substantial role in the crypto market.
Critique from Financial Analysts
Amidst these developments, financial commentator Peter Schiff, a known skeptic of the cryptocurrency sector, criticized the rapid increase in token numbers. He pointed out that the inflation rate of digital tokens is “off the charts,” suggesting that most tokens mimic Bitcoin in crucial aspects, including the imposition of a hard cap on their supply.
So much for the idea of "limited supply." The inflation rate of digital tokens is off the charts. Almost all of these tokens are virtually identical to Bitcoin in all the ways that really matter, including a hard cap on their individual supply.
— Peter Schiff (@PeterSchiff) January 26, 2025
Schiff’s comments highlight the ongoing debate over the sustainability and originality within the burgeoning crypto market.