Listing frenzy! Coinbase adds nearly 100 crypto assets for trading in 2021

As of right now, Coinbase has 139 tradable property. The change added a whopping 83 property to its buying and selling listing in 2021, practically double the variety of property it had collected within the eight years since its founding. 

Is that this speedy growth a easy cash-grab? Are any of those lesser-known tokens and cash securities? Is that this irresponsible or overly formidable? What does this speedy growth of property by Coinbase imply?

A cash seize?

I really feel the reply to the primary query is an emphatic “No!” Coinbase is making some huge cash on buying and selling charges, however its token listing growth just isn’t in regards to the cash. Coinbase started out with a small sales space at a convention “simply attempting to make one thing that clients wished,” pitching T-shirts and a hosted Bitcoin (BTC) pockets. Now, Coinbase is the second-largest crypto change on this planet.

It’s a typical story that an entrepreneur builds one thing, finds success, sells and strikes on, however Coinbase founder and CEO Bryan Armstrong was manning that small sales space eight years in the past, and continues to be at Coinbase right now. The change stays true to its — and Armstrong’s — core values: financial freedom, property rights, a extra environment friendly international system of change, and for my part, simply constructing the issues that clients need.

Again in June of this 12 months, Armstrong posted a sequence of tweets indicating Coinbase’s change of method to figuring out which property get listed. To sum it up, Coinbase shifted from a merit-based method relying on inside standards to a practical method based mostly on externalities. This new method permits the market to resolve which property have essentially the most worth — appropriately. Reminder: Do your individual analysis, even when it’s a Coinbase itemizing.

Associated: The responsibility behind a crypto lender’s asset listing

Securities?

Coinbase acknowledges and accepts its management position in shepherding in new regulation that’s useful to the brand new financial system. The change actually does appear to pay attention to its management position within the crypto house, and works exhausting on compliance. It due to this fact wouldn’t make sense for Coinbase to listing a gang of property that may provoke regulators (in the USA, “nonaccredited” traders are barred from early venture funding).

Whereas the Securities and Alternate Fee is treating stablecoins as securities, Coinbase’s itemizing parade has continued nearly weekly. It is extremely seemingly that there are property added to Coinbase’s commerce pairs that the SEC would deem securities. Nonetheless, the obstacles that presently exist within the identify of “investor safety” could lastly be coming down. Coinbase’s aggressive itemizing exercise squares with the financial freedom, robust property rights, and core values that it helps, and should even trace at undisclosed coverage being mentioned privately.

As Melissa Strait, chief compliance officer at Coinbase, pointed out:

“We’ve at all times believed that for crypto to achieve the legitimacy wanted for mainstream adoption, compliance can’t be an afterthought — it needs to be core to the way in which we function.”

She additionally added: “We strongly imagine that to ensure that cryptocurrency to achieve widespread acceptance, we will need to have a constructive relationship with the regulators and companies which were charged with oversight of the crypto ecosystem.”

Practically all of the property listed this 12 months are ERC-20 tokens on the Ethereum community. Why? As a result of they’d be deemed “sufficiently decentralized.” This phrase is taken from a speech that William Hinman (former director of the SEC’s Division of Company Finance) made in June 2018. As long as an asset is as decentralized as Etherum was on the day of that speech, it’s informally and tentatively not thought-about a safety. Thanks, Hinman!

Associated: Deterring adoption? Balancing security and innovation in crypto

Irresponsible or overly formidable?

If there may be one factor I’ve noticed in researching this subject, it’s that Coinbase could be very organized and process-driven. I suppose it needs to be apparent, contemplating its success. Coinbase’s workforce is conscious of the authorized circumstances by which the change operates, and has constructed decision-making methods designed to maintain tempo with this breakneck business. Armstrong himself mentioned that he needs to on-board a billion clients. Now that’s formidable! Overly, although? Not when you imagine in a free and open monetary system past the management of any central actor.

Coinbase claims to be “agnostic” on itemizing tokens. That’s, Coinbase doesn’t make any judgement on the tasks it lists, however rewards the builders that examine the entire containers of its itemizing standards. It’s attention-grabbing to see the combination of tasks which are making it onto the Coinbase platform. In any case, a Coinbase itemizing is like making it to the large leagues.

What now?

Coinbase listed 16 DeFi tasks in 2021. It doesn’t come at a shock that decentralized finance takes the highest spot. First-layer tasks got here in second place with 12 — once more not likely a shock, as everybody needs to be the subsequent Ethereum. In third place have been eight decentralized change tokens, whereas tied in fourth place have been stablecoins and NFT gaming, every with seven tasks. Taking fifth place have been layer-two Ethereum tasks.

Coinbase actually stepped on the fuel this 12 months. It may imply any variety of issues relying on who you ask. For me, it’s a very bullish signal for the general business. Coinbase is giving its clients what they need: extra decisions and extra alternatives to seek out that undervalued gem. It’s as much as every particular person to do their very own due diligence. What some would name essentially the most “user-friendly” platform round is offering entry to an honest variety of property now. Having the liberty of selection is a accountability — select properly, or it’s possible you’ll discover that the SEC will really feel the necessity to decide on for you.

This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a choice.

The views, ideas and opinions expressed listed below are the creator’s alone and don’t essentially mirror or signify the views and opinions of Cointelegraph.