Coinbase CEO Brian Armstrong says that the crypto exchange will need to rethink how it lists new coins for trading given the never-ending stream of new tokens being created.
Posting on the social media platform X, Armstrong says there are too many coins do conduct proper evaluation and that applying regulatory clarity to them on an individual basis is now “totally infeasible.”
“We need to rethink our listing process at Coinbase given there are ~1 million tokens a week being created now and growing. High-quality problem to have, but evaluating each one by one is no longer feasible. And regulators need to understand that applying for approval for each one is totally infeasible at this point as well (they can’t do 1 million a week).
It needs to move from an allow list to a block list and utilize customer reviews/automated scans of on-chain data etc. to help customers sift through.
That and we’ll continue integrating native DEX (decentralized exchange) support more deeply. Customers shouldn’t need to know or care whether the trade is happening on a DEX or CEX (centralized exchange).”
According to Coinbase.com, there are 271 assets available for trading, but the number of tokens being created each day is skyrocketing exponentially.
Coinbase director Conor Grogan reports that the crypto space is on track to have at least 100 million tokens in circulation by the end of the year.
Armstrong also admitted last week that Coinbase was caught off guard by the explosion of memecoins on Solana (SOL), which bogged down the blockchain and made it hard for the exchange to process withdrawals.
“Team is working hard on scaling our Solana infra now – lots of Solana activity last few days, we were not anticipating this level of surge…
It’s a scaling challenge keeping up with activity on Solana chain (which surged lately), not solvency. Customer funds are 100% backed and audited periodically by Deloitte. Team is working hard to resolve it.”
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