Coinbase CEO Brian Armstrong Reveals What It Takes to Get Altcoins Listed

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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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Dis­claimer: The opin­ions expressed in The Dai­ly Hodl are not invest­ment advice. Investors should do their due dili­gence before mak­ing high-risk invest­ments in Bit­coin, cryp­tocur­ren­cies, or dig­i­tal assets. Please note that your trans­fers and trans­ac­tions are at your own risk, and any loss­es you may incur are your respon­si­bil­i­ty. The Dai­ly Hodl does not rec­om­mend the buy­ing or sell­ing of cryp­tocur­ren­cies or dig­i­tal assets, nor is The Dai­ly Hodl an invest­ment advi­sor. Please note that The Dai­ly Hodl is involved in affil­i­ate marketing.

Fea­tured Image: Shutterstock/sk99

source: dailyhodl.com



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