Coinbase Faces Challenges with New Tokens, CEO Proposes New Listing Strategy

Brian Armstrong, CEO of Coinbase, has proposed a significant overhaul of the company’s token listing process due to the rapid rise in the creation of new tokens.

In a post on X on January 24, Armstrong highlighted that approximately one million tokens are being created each week, making the current manual review system increasingly unmanageable.

“We need to rethink our listing process at Coinbase, given there are ~1 million tokens a week being created now, and growing,” Armstrong said. He suggested moving away from the traditional allow list approach and instead implementing a block list system.

This system would be supported by customer reviews and automated on-chain data scans, which he believes would help users navigate the growing number of tokens more effectively.

Currently, Coinbase’s listing process involves a detailed review, due diligence, and regulatory compliance checks for each token. However, Armstrong’s comments reflect the strain this process is facing as the number of new tokens continues to grow.

The announcement comes amid ongoing criticism from Justin Sun, the founder of the Tron blockchain. Sun has expressed frustration over the seven-year delay in listing Tron’s native cryptocurrency, TRX, on Coinbase.

In response to Armstrong’s tweet, Sun suggested that the delays in listing TRX reflect Coinbase’s lack of fairness and industry judgment rather than any issues with the coin itself.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice.