Coinbase CEO Brian Armstrong Reveals What It Takes to Get Altcoins Listed
The head of the largest US crypto exchange is revealing the company’s strategy for listing new digital assets on its platform.
In an interview with Lex Fridman, Coinbase CEO Brian Armstrong says that the first step in listing an altcoin on the exchange is determining whether or not the asset qualifies as an unregistered security.
“Basically we have a test of legality. We check: ‘Do we think this is a security?’ If so, it cannot be listed on Coinbase. And there’s a very rigorous process that we go through for that.
Currently, as the law stands in the US, you can’t do that. We acquired a broker’s license from the SEC. We’re trying to work with them to get it up and running and hopefully one day we’ll be able to trade real crypto securities, but right now, that’s not possible in the US.”
Armstrong says that after legality comes security. If all goes well, the crypto billionaire says Coinbase wants to more or less go ahead and list the asset as part of its mission to list as many assets as possible, moving away from the notion that it backs any of its altcoins.
Armstrong predicts that there will eventually be “millions” of cryptocurrencies and that Coinbase may aim to position itself as the “Amazon” of cryptocurrencies, offering a wide selection of products as long as they are not fraudulent or dangerous.
“Then we look at the cybersecurity of the crypto asset. Do we think there is a flaw in the smart contract or a way someone could manipulate it without the clients’ permission?
We also look at some compliance pieces, like the actors behind it and any kind of criminal history and stuff like that. If we think it meets our listing standards, basically this legality test and everything related to client protection, then we want to list it because we want the market to decide at that point.
It’s kind of like Amazon or something, where a product might have three stars or five stars, but if it starts getting one star consistently, it’s probably fraudulent or faulty or something and maybe Amazon will take it down. Otherwise, you’ll want to let the market decide what these things are…
My belief is that there will be millions of these assets over time, so hopefully it won’t be news every time we add one in the future, basically.”
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source: dailyhodl.com
