Coinbase CEO Brian Armstrong is calling for a major overhaul of the exchange’s process for listing new cryptocurrencies. He says the sheer volume – around a million new tokens per week – makes proper evaluation impossible.
Too Many Tokens, Not Enough Time
Armstrong, posting on X (formerly Twitter), explained that individually vetting each new token is simply not feasible. He argues that regulators face the same impossible task, making the current system unsustainable. He suggests a shift from an “allow list” (approving specific tokens) to a “block list” (banning only problematic tokens). This would involve relying more on customer reviews and automated analysis of blockchain data to help users navigate the vast and growing crypto landscape.
Integrating Decentralized Exchanges
Armstrong also mentioned plans to further integrate support for decentralized exchanges (DEXs). The goal is to make it seamless for users to trade, regardless of whether it’s on a centralized exchange (like Coinbase) or a DEX, simplifying the experience.
Solana Surge and Scaling Challenges
Coinbase recently faced challenges related to the surge in memecoin activity on the Solana blockchain. This overwhelmed the network and caused processing delays for withdrawals. Armstrong reassured users that customer funds are safe and that the team is working to improve the exchange’s infrastructure to handle such spikes in activity.
The Future of Crypto Listings
The sheer number of new cryptocurrencies emerging daily is staggering. Coinbase currently lists 271 assets, but the pace of new token creation is accelerating rapidly. One Coinbase director predicts at least 100 million tokens in circulation by year’s end. This highlights the urgent need for Coinbase and the broader crypto industry to adapt to this rapidly evolving landscape.
