Coinbase Chief Suggests Rethinking Token Listing as Industry Grows Rapidly
The chief executive of Coinbase has called for the reinvention of the cryptocurrency exchange’s process for listing tokens. Remarks by Armstrong came on Jan. 24 via X, formerly known as Twitter, when the crypto world was experiencing a high influx in token creation, with almost 1 million tokens being launched every week.
Challenges in the Present System
The current listing process at Coinbase includes extensive reviews and compliance checks, but this has become increasingly unsustainable with the number of new tokens emerging. Armstrong says it’s time to move away from the traditional “allow list” to a more scalable “block list” system. He further emphasized the need to incorporate customer reviews and automated on-chain data analysis as a way of filtering tokens for listing.
We need to rethink our listing process at Coinbase, Armstrong stated, emphasizing the current system couldn’t keep up with the growth of the industry.
Backlash from within the Industry
Justin Sun, the founder of Tron, lashed out at Coinbase’s listing policy to indicate that TRX, a top-10 cryptocurrency by market capitalization, has been in review for seven years without getting listed. Sun further alleged that Coinbase had asked for extreme fees to list TRX, including $330 million in assets, a claim that has sparked controversy in the crypto space.
“This is not about TRX itself; it’s about Coinbase losing its sense of fairness and sound judgment,” Sun said in a response to Armstrong’s post.
Reformist Appeals
Crypto influencer Ansem suggested that Coinbase hire industry veterans to smoothen the process for token listings. “Experienced individuals could easily pinpoint the 10 tokens out of a million which deserve immediate listing,” he said, emphasizing practical industry experience for token selection.
To the Hybrid Model
Armstrong also announced Coinbase’s plans to integrate more deeply with decentralized exchanges. He envisioned a future where customers would have a smooth trading experience, whether the transactions occurred on centralized or decentralized platforms. This hybrid approach aligns with the exchange’s broader mission to adapt to industry shifts.
These comments come at a time of optimism for crypto regulation under President Donald Trump’s presidency. During a World Economic Forum appearance in Davos, he focused on how regulative clarity has set the tone and could potentially turn the fate of the crypto industry; hence, the same changes await Coinbase, whose operations go international.
