Coinbase Shifts Token Listing Policy Amid Criticism and Tron's Feud

Coinbase, the largest cryptocurrency exchange in the United States, has been facing criticism over its token listing process. In a recent X post, Coinbase CEO Brian Armstrong acknowledged the challenges posed by the exponential growth of new tokens, noting that manually evaluating each token is no longer feasible. He proposed a shift from an allow list to a block list, utilizing customer reviews and automated scans of on-chain data to help customers sift through the vast number of tokens.

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. Sun argued that this reflects Coinbase's loss of the most basic fairness and industry judgment when it comes to new listings.

Ansem, a pseudonymous crypto influencer, suggested that Coinbase hire someone with hands-on experience in the industry to streamline token evaluations. He argued that this would enable Coinbase to identify the most promising tokens quickly and efficiently.

Armstrong also revealed Coinbase's plans to deepen integration with decentralized exchanges (DEXs), envisioning a future where customers "shouldn’t need to know or care whether the trade is happening on a DEX or CEX [centralized exchange]." This comes amid hopes for friendlier crypto regulation in the US under President Donald Trump's new administration.