Coinbase, the leading crypto exchange in the US, is changing its token listing process due to the rapid increase in new cryptocurrencies. Currently, over 1 million tokens are created each week, making it difficult for the platform to evaluate each one manually.
On January 26, CEO Brian Armstrong highlighted the need for a new strategy. He noted that the current method of evaluating tokens individually is no longer practical. He suggested moving from an “allow-list” system to a “block-list” approach.
This new method would involve using automated data scans and community feedback to identify and exclude risky tokens, making the listing process more efficient. Armstrong believes this will help regulators focus on harmful assets without being overwhelmed by the volume of new tokens.
Coinbase also plans to enhance its integration with decentralized exchanges (DEXs). The aim is to make trading easier for users, regardless of whether transactions occur on centralized exchanges (CEXs) or DEXs. Armstrong stated that customers should not need to worry about where their trades are happening.
The rapid growth of token creation has made these changes urgent. Coinbase executive Conor Grogan mentioned that there are now over 36 million tokens in the market, with predictions that this number could reach 100 million by 2025. This is a significant increase compared to the 2017-2018 altcoin boom, which had fewer than 3,000 tokens.
Platforms like Pump.fun and SunPump have played a key role in this growth by making it easier for anyone to create tokens. For instance, Pump.fun has enabled the launch of over 6 million tokens since last year. The rise of meme coins has also contributed to the expanding crypto landscape.
As the cryptocurrency industry continues to grow, Coinbase’s new approach aims to balance innovation with security, adapting to the unprecedented influx of new tokens.
