Coinbase Urges Automation to Address Token Vetting Challenges
Coinbase, the largest U.S. crypto exchange, is revisiting its token listing strategy to address the challenges posed by a rapid surge in new cryptocurrency launches.
The move comes as the crypto ecosystem sees unprecedented growth in the number of coins entering the market.
Coinbase faces hurdles as weekly token creation hits 1 million
January 26, Coinbase CEO Brian Armstrong announced that the platform would be re-evaluating its token listing process. He emphasized that the exchange cannot manually evaluate all tokens before listing them, as approximately 1 million tokens are created every week.
This challenge is not limited to communication. Armstrong noted that regulators will work to review tokens at such a pace.
“We need to rethink Coinbase’s listing process, given that around 1 million tokens are now created every week and growing. Quality questions are needed, but it is no longer feasible to evaluate every question. Regulators need to understand where this is happening At one point, it was completely unfeasible to apply for approval (they couldn’t do 1 million a week).” explain.
To address these issues, Armstrong proposed a shift from the traditional “allow list” model to a “block list” approach. The system will use automated on-chain data scanning and community feedback to identify and exclude risky tokens. Armstrong believes this streamlined process allows regulators to focus on eliminating harmful assets without feeling overwhelmed.
At the same time, Coinbase also plans to deepen its cooperation with Decentralized Exchange (DEX). Armstrong emphasized that the move is intended to simplify the transaction process for users and eliminate concerns about whether the transaction occurs. Centralized Exchange (CEXS) or DEX.
“We will continue to integrate native DEX support more deeply. Customers do not need to know or care whether a transaction occurs on a DEX or a CEX.” Armstrong concluded.
The surge in token creation highlights the urgent need for such changes. Coinbase executive Conor Grogan, recently public The cryptocurrency market now has over 36 million coins and is expected to reach the 100 million mark by 2025. In comparison, the 2017-2018 Altcoin Boom contained less than 3,000 tokens.
In fact, meme coins have contributed significantly to this growth. Platform likes Solana based pumps and Tron-based Sunpump Token launch has been democratized to make the process easier for encrypted users. according to dune Analysis, pump only.
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