Coinbase is one of the largest crypto exchange so why does it have only five listed assets? This is a question that has crossed every person’s mind who has traded cryptos. Well, this is soon going to change as Coinbase has revamped its listing policies, which now allows projects to submit their cryptocurrencies for evaluation under the company’s digital asset framework.
Listings to be done a jurisdiction to jurisdiction basis
Coinbase, as part of the revised guidelines, shared an online form, which has to be submitted by the projects who desire to list themselves on Coinbase. The form deep dives into project details asking several project- related questions which give us an idea that, even though the doors are open to all, the evaluation process is not going to be any easier. And, also if a project gets selected through the submission process, the listing will be added on a jurisdiction-by-jurisdiction basis as Coinbase doesn’t want to be restricting itself to those assets that comply with U.S. regulation. The addition will be done based on a specific region’s regulatory framework.
Coinbase is believed to be doing this to please its customers who have been demanding more assets on the platform and also to up the exchange’s competitive edge against other, foreign exchanges.
Dan Romero, vice president, and general manager of Coinbase Consumer announced this on CNBC’s “Fast Money and was quoted saying
“Ultimately, crypto is a global phenomenon. You have software developers and entrepreneurs around the world building products on top of crypto, and it’s unlocking a lot of use cases, particularly in emerging markets. I think we need to shift as a company to a more global perspective,”
“It’s responding to what customers want. Adding more assets is directly something customers are telling us. So, ultimately, by adding more assets, we are going to increase trust and make the platform easy to use for customers,” Romero said.
On being asked about competition Romero said
“There are some really high-quality, global exchanges that you’re going to see in the coming months, as we add more assets, we are going to be more competitive with,”
Coinbase CTO Balaji Srinivasan also was quoted expressing his view on the same by certain media where he said
“Satoshi and Vitalik [Buterin] were not Coinbase customers. But all future and current asset creators and developers are. So it’s like we’re becoming a two-sided marketplace.”
Coinbase listing – The benchmark for a digital asset infrastructure project
Coinbase is known for its stringency and has one of the most difficult evaluation processes for the listing. That the reason if Coinbase announces the listing of certain assets, its price just skyrockets. To give an example When Coinbase integrated Litecoin into its trading systems in early May of 2017, for example, it triggered an immediate surge in the transaction volume and price of LTC. From trading at $24.20 (Index) on May 4th, its price rose to $48.40 on June 18th, a 98.43% jump in less than 6 weeks.
This is because a blockchain project has to go through an exhaustive review process which features a number of stages including;
- an initial review by Coinbase’s internal asset selection committee.
- a legal and risk review phase.
- an approval process from the Coinbase executive committee.
- a specific assessment of core code and engineering facilities.
- and a final assessment of the asset’s liquidity capabilities, price stability, and financial performance.
Members of the asset selection committee also follow strict confidentiality obligations, and protocol surrounding public information disclosure and trading activity.
This stringency and the exhaustive process have made Coinbase listing a global benchmark for digital assets to prove their credentials and gain the ultimate listing opening its doors to millions of customers that operate on Coinbase.
While the new laws won’t lower down the stringency and the exhaustive selection process at Coinbase it definitely makes the first step easier as now projects can approach Coinbase than Coinbase picking and choosing them. This definitely should benefit a lot of projects which are credible and deserve a listing.
Will we see some new listing on Coinbase by December 2018? Do let us know your views on the same.