On Jan. 26, 2025, Coinbase CEO Brian Armstrong announced the company’s decision to reassess its token listing process due to the rapid growth of new cryptocurrencies.
On Jan. 26, 2025, Coinbase CEO Brian Armstrong announced the company’s decision to reassess its token listing process due to the rapid growth of new cryptocurrencies. Armstrong pointed out that approximately one million tokens are being created every week, making the manual evaluation of each token impractical. He suggested shifting from an "allow-list" system to a "block-list" approach, as well as incorporating customer reviews and automated on-chain data scans to help users navigate the expanding pool of tokens.
Currently, Coinbase evaluates tokens through a multi-step process, including due diligence and regulatory compliance checks. However, with token creation surging, Armstrong believes this method is no longer sustainable. He also called for regulators to adopt a more pragmatic approach to manage the growing number of tokens.
Justin Sun, the founder of the Tron cryptocurrency, criticized Coinbase's listing policies, noting that Tron (TRX), despite being among the top 10 cryptocurrencies by market cap, has been under review for seven years without being listed. Sun accused Coinbase of demanding excessive token listing fees, alleging that the exchange sought $330 million for TRX’s inclusion, which included a Bitcoin deposit and millions of TRX tokens.
In light of these concerns, Armstrong announced plans to deepen Coinbase’s integration with decentralized exchanges (DEXs). He envisions a future where customers won’t need to differentiate between trading on centralized exchanges (CEXs) and DEXs, aiming to simplify the overall crypto trading experience.
Armstrong’s announcement also came amid conversations about crypto’s regulatory future, especially with the new U.S. administration. At the World Economic Forum in Davos, Armstrong discussed the potential impact of the Trump administration’s policies on the cryptocurrency sector.
Financial commentator Peter Schiff, a well-known crypto critic, weighed in on the announcement, calling the inflation rate of crypto tokens "off the charts." He argued that many tokens are similar to Bitcoin in key aspects, including having a hard cap on their supply, which he believes undermines their value.
Coinbase, which has listed 271 assets and hundreds of trading pairs, has faced criticism for some of its past token listings, particularly when large trading volumes were noticed before tokens were listed, raising concerns about potential insider trading. Despite these challenges, the exchange has made efforts to comply with legal and regulatory standards while working to improve its asset evaluation process. Armstrong’s proposed changes aim to address the growing challenges posed by the increasing number of new tokens, ensuring that Coinbase remains an effective and compliant platform in the evolving crypto landscape.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
