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The list of coins and tokens on the Coinbase platform has become one of its most distinguishing features. As a result, this is an important time to see some changes coming to the company’s listing policy.
Coinbase is adding nearly 100 new crypto assets to its listings in 2021. This will make Coinbase the largest exchange for trading these assets. Read more in detail here: coinbase listing new coins 2021.
Coinbase now offers 139 trading assets. In 2021, the exchange added a remarkable 83 assets to its trading list, virtually doubling the amount of assets it had amassed in the previous eight years.
Is this fast growth just a money grab? Are there any securities in these lesser-known tokens and coins? Is this reckless or too ambitious? What does Coinbase’s fast increase of assets imply?
Is this a money grab?
To the first question, I believe the response is a resounding “No!” Coinbase makes a lot of money from trading fees, but the increase of its token list isn’t about the money. Coinbase began with a modest exhibit at a convention, promoting T-shirts and a hosted Bitcoin (BTC) wallet, “simply trying to develop something that people desired.” Coinbase is now the world’s second-largest cryptocurrency exchange.
It’s a typical story that an entrepreneur creates something, grows it, sells it, and goes on, but Coinbase founder and CEO Bryan Armstrong was manning that modest booth eight years ago, and he’s still there today. The exchange adheres to its — and Armstrong’s — key beliefs of economic liberty, property rights, a more efficient global exchange system, and, in my view, simply creating what consumers want.
Armstrong announced Coinbase’s new strategy to choosing which assets are published in a series of tweets in June of this year. To summarize, Coinbase has evolved from an internal merit-driven strategy to a pragmatic one focused on externalities. This new method enables the market to determine which assets are most valuable, as it should. Reminder: Even if it’s a Coinbase listing, do your own research.
Related: Who is responsible for a cryptocurrency lender’s asset listing?
Securities?
Coinbase recognizes and embraces its position as a pioneer in bringing in new regulations that benefit the new economy. The exchange seems to be well conscious of its leading position in the crypto field, and it is working hard to ensure compliance. As a result, it wouldn’t make sense for Coinbase to include a group of assets that would irritate authorities (in the US, “nonaccredited” investors are prohibited from investing in early-stage projects).
While the Securities and Exchange Commission considers stablecoins to be securities, Coinbase has continued to offer them on a weekly basis. It’s extremely probable that assets added to Coinbase’s trading pairs will be deemed securities by the SEC. However, the existing restrictions erected in the name of “investment protection” may be gradually dismantled. Coinbase’s active listing activity aligns with the company’s support for economic freedom, strong property rights, and fundamental principles, and may even hint to a secret policy being considered behind closed doors.
As Melissa Strait, Coinbase’s chief compliance officer, put it:
“We’ve long maintained that in order for crypto to earn the credibility required for mass adoption, compliance cannot be an afterthought – it must be at the heart of everything we do.”
“We firmly think that in order for cryptocurrencies to attain universal adoption, we must have a positive relationship with the authorities and agencies responsible for overseeing the crypto ecosystem,” she said.
Almost all of the assets featured this year are Ethereum-based ERC-20 tokens. Why? They would be regarded “sufficiently decentralized” as a result. This remark was borrowed from a speech given in June 2018 by William Hinman (former director of the SEC’s Division of Corporation Finance). Informally and provisionally, an asset is not deemed a security as long as it is as decentralized as Etherum was on the day of that speech. Thank you very much, Hinman!
Is there a way to stop people from adopting? In the crypto world, balancing security with innovation is a challenge.
Irresponsible or overconfident?
Coinbase is incredibly structured and process-driven, if there is one thing I’ve noticed when investigating this issue. Given its success, I suppose it should be evident. Coinbase’s staff is cognizant of the legal environment in which the exchange works, and has established decision-making mechanisms to keep up with the industry’s rapid speed. Armstrong has said that he wants a billion consumers on board. That’s a bold move! Is it, however, excessive? Not if you believe in a free and open financial system that is not controlled by a single entity.
Coinbase promises to be “neutral” when it comes to token listings. To put it another way, Coinbase does not pass judgment on the projects it lists, but instead rewards the developers who satisfy all of the boxes on its listing criteria. The variety of projects that make it into the Coinbase platform is fascinating. After all, becoming listed on Coinbase is like breaking into the major leagues.
What now?
In 2021, Coinbase identified 16 DeFi projects. It’s no surprise that decentralized finance is at the top of the list. Second-layer projects came in second with 12 votes, which is not surprising given that everyone wants to be the next Ethereum. Eight decentralized exchange tokens tied for third place with seven projects apiece, while stablecoins and NFT gaming tied for fourth place with seven projects each. Layer-two Ethereum projects came in fifth place.
This year, Coinbase put the pedal to the metal. Depending on who you ask, it might signify a variety of things. It is, in my opinion, a really positive indicator for the business as a whole. Coinbase is providing what its consumers want: more options and chances to uncover that undervalued treasure. It is up to each person to do their own research. What some could term the most “user-friendly” platform available today gives users access to a sizable amount of assets. Having the ability to choose is a duty; pick carefully, or the SEC may feel compelled to make your decision for you.
There is no financial advice or suggestion in this article. Every investing and trading choice has risk, and readers should do their own due diligence before making a decision.
The author’s views, ideas, and opinions are entirely his or her own, and do not necessarily reflect or represent those of Cointelegraph.
Stephen J. Mesa is Cointelegraph Markets Pro’s unofficial “ambassador.” With 16 years as a real estate market analyst and 10 years developing and installing bespoke vehicle audio and alarm systems, he is a commercial sales manager of lawn and leisure at John Deere Equipment.
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Coinbase has announced that they will be adding nearly 100 crypto assets for trading in 2021. This is a list of the new listings from Coinbase. Reference: coinbase new listings october 2021.
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