Coinbase CEO Calls for Crypto Listing Process Overhaul Amid Token Explosion

Coinbase CEO Brian Armstrong has called for a rethinking of the crypto exchange's listing process, citing the overwhelming number of new coins being created each week. In a post on the social media platform X, Armstrong noted that the sheer volume of tokens being created - approximately one million per week and growing - has made it increasingly difficult to conduct proper evaluations and apply regulatory clarity on an individual basis.

Armstrong suggested that the listing process should shift from an "allow list" to a "block list," utilizing customer reviews and automated scans of on-chain data to help users navigate the vast array of tokens. He also emphasized the importance of integrating native decentralized exchange (DEX) support more deeply, ensuring that customers do not need to differentiate between DEX and centralized exchange (CEX) trades.

The Coinbase CEO's comments come as the number of available assets on the platform has grown to 271, while the daily creation of new tokens is skyrocketing exponentially. Coinbase director Conor Grogan has predicted that the crypto space could have at least 100 million tokens in circulation by the end of the year.

Armstrong's call for a rethinking of the listing process follows Coinbase's recent struggles with the surge of memecoins on the Solana (SOL) blockchain. The exchange admitted that it was caught off guard by the sudden increase in activity, which led to downtime and difficulties processing withdrawals. Armstrong assured users that customer funds were fully backed and audited periodically by Deloitte, and that the team was working diligently to resolve the issue.