Coinbase , the largest cryptocurrency exchange in the US, is revamping its token listing process to address the challenges brought by the rapid growth of new cryptocurrencies. With the number of tokens created weekly now exceeding 1 million, the platform is exploring new strategies to manage the surge. On January 26, Coinbase CEO Brian Armstrong announced the need to reconsider the platform’s current system, stating that manually evaluating each token is no longer feasible . He also emphasized that regulators face similar challenges in managing the sheer volume of new tokens. “We need to rethink our listing process at Coinbase given there are ~1m tokens a week being created now, and growing. High-quality problem to have, but evaluating each one by one is no longer feasible,” Armstrong explained. He proposed moving from the current “allow-list” system to a “block-list” approach. This shift would use automated on-chain data scans and community feedback to identify and exclude risky tokens while streamlining the listing process. Armstrong believes this model will enable regulators to focus on harmful assets without being overwhelmed. In addition to revising its token evaluation strategy, Coinbase plans to strengthen its integration with decentralized exchanges (DEXs) . The goal is to simplify trading for users, making it seamless regardless of whether transactions occur on centralized exchanges (CEXs) or DEXs . “We’ll continue integrating native DEX support more deeply. Customers shouldn’t need to know or care whether the trade is happening on a DEX or CEX,” Armstrong said. The explosion of token creation has underscored the urgency of these changes. According to Conor Grogan, a Coinbase executive, there are now over 36 million tokens in the crypto market, with projections suggesting that number could reach 100 million by 2025. For context, the 2017-2018 altcoin boom featured fewer than 3,000 tokens. Platforms like Solana-based Pump.fun and Tron-based SunPump have significantly contributed to this growth by democratizing the token creation process. Pump.fun alone has enabled the launch of over 6 million tokens since its introduction last year, according to Dune Analytics. Meme coins have also played a substantial role in the surge, highlighting the evolving nature of the crypto ecosystem. As the industry continues to expand, Coinbase’s revamped approach aims to balance innovation with security while adapting to the unprecedented growth of new cryptocurrencies.
