Coinbase CEO: 1 Million New Cryptocurrencies Weekly

Coinbase, the largest cryptocurrency exchange in the United States, is facing a challenge due to the rapid surge in new token creation. According to Coinbase CEO Brian Armstrong, approximately 1 million new cryptocurrencies are being created each week on the platform. This unprecedented growth has led Armstrong to propose a shift in the company's token listing strategy.



The current "allow-list" model, where Coinbase manually evaluates each token before listing it, is no longer feasible with the current pace of token creation. Armstrong has suggested moving to a "block-list" approach, which would utilize automated on-chain data scans and community feedback to identify and exclude risky tokens. This streamlined process would enable regulators to focus on eliminating harmful assets without feeling overwhelmed.

However, this proposed change has faced criticism from industry players. Justin Sun, founder of Tron, took a jab at Coinbase's listing policies, noting that Tron (TRX), one of the top 10 cryptocurrencies by market cap, has been under review for seven years without being listed. Sun alleged that Coinbase demanded $330 million in fees to list TRX, including 500 million TRX tokens worth $80 million at the time and a $250 million Bitcoin deposit to be held in Coinbase Custody.

Meanwhile, Ansem, a pseudonymous crypto influencer, suggested that Coinbase hire someone with hands-on experience in the industry to streamline token evaluations. "They can tell you the 10 out of 1 million tokens that need to be listed as soon as possible. This is an easily fixable problem," Ansem said.

Coinbase's plans to deepen integration with decentralized exchanges (DEXs) could also attract more users and increase its overall market share. By integrating native DEX support more deeply, Coinbase aims to simplify the trading process for users, eliminating concerns about whether transactions occur on centralized exchanges (CEXs) or DEXs. This move could potentially attract more users to the platform, increasing Coinbase's overall market share.



In conclusion, the rapid surge in new cryptocurrency launches has presented Coinbase with significant challenges in effectively evaluating and listing tokens. The proposed shift to a "block-list" model and integration with DEXs could help Coinbase address these challenges and maintain its position as the leading cryptocurrency exchange in the United States. However, these changes also present potential risks and require careful consideration to mitigate any negative impacts on the platform's reputation and user base.