New Token Listing Approach: Armstrong’s Blocklist Proposal

Brian Armstrong, CEO of Coinbase, wants to see a revolutionary change when it comes to token listings. He’s calling for the transition from an allowlist to a blocklist approach. Why, you ask? Well, it’s in response to the staggering number of tokens being created each week—around one million, if you can believe it. The current way of doing things just can’t keep up, and honestly, it’s about time we had a look at a new cryptocurrency exchange business model.

The State of Token Creation

Token creation is exploding, and honestly, it’s a bit concerning. With the sheer volume of tokens being produced, the traditional allowlist approach—where you essentially have to be “approved” to be listed—is becoming less and less sustainable. Armstrong’s idea is that a blocklist would streamline the process, but can it really be that simple?

Armstrong’s Blocklist Proposal

Armstrong’s proposal is to switch to a blocklist system. This means that only known bad actors or tokens would be blocked, allowing the crypto exchange market to function more freely. He stated that they would employ customer reviews and automated scans of on-chain data to help customers sift through the noise, which might sound great in theory, but will it work in practice?

Right now, Coinbase has a multi-step review process for token listings that includes due diligence and compliance checks. But, as Armstrong pointed out, the current model is struggling with the influx of tokens. He’s asking regulators to consider a more practical approach, and let’s be real, they might not have much of a choice.

Criticism and Concerns

Of course, there are critics. Justin Sun, the founder of Tron, took to Twitter to criticize Coinbase. He pointed out that despite being a top 10 cryptocurrency by market cap, TRX has been under review for 7 years without a listing. He went further, alleging that Coinbase demanded $330 million in listing fees, which Coinbase hasn’t addressed.

Then there’s crypto influencer Ansem, who suggested that hiring someone with real industry experience might be a good idea—someone who could actually find the 10 out of a million tokens that matter.

The Future of Crypto Trading Platforms

Armstrong also mentioned plans for a future where users wouldn’t need to know whether trades were happening on a DEX or CEX. This could be a step toward a more integrated crypto trading platform list, but again, is it feasible?

There’s some optimism for clearer crypto regulations in the US, especially with the recent developments in the regulatory landscape. Armstrong’s comments come at a time when many are hoping for some clarity.

The Challenges Ahead

While a blocklist approach seems more efficient, it also raises questions. How do we ensure that the reviews and scans are unbiased and effective? There’s the risk that malicious actors could exploit the system. And what does it mean for compliance with AML and KYC?

In the end, Armstrong’s vision is intriguing. A blocklist could potentially make token listings fairer and more inclusive. The question remains: can it work? The cryptocurrency exchange reviews will likely be mixed, but one thing is certain, the crypto landscape is shifting.