Brian Armstrong: Coinbase should rethink the process of accepting digital currencies

Brian Armstrong, the CEO of Coinbase, shared a message on the X social network indicating that the exchange must reevaluate its process for accepting digital currencies due to the creation of approximately one million new tokens each week.

Brian Armstrong, the CEO of Coinbase, recently shared important thoughts on the challenges of accepting digital currencies.

In a message posted on the X social network, he pointed out a significant issue: every week, around one million new tokens are created. This rapid expansion presents a serious problem for Coinbase.

Armstrong stressed that it is nearly impossible to thoroughly evaluate each new token and secure the necessary legal permissions to list them on the platform.

To address this overwhelming situation, Armstrong proposed a shift in strategy. He suggested moving away from using whitelists, which require extensive vetting of tokens, and instead using blacklists combined with automated data checks.

This approach could streamline the process and help manage the influx of new digital currencies more effectively.

His comments come in light of recent technical difficulties faced by Coinbase. The exchange struggled to process withdrawals during a sudden spike in memecoins on the Solana Network.

This issue underlines the need for a revised process for managing the ongoing growth of digital assets. Armstrong’s observations highlight the complexities that cryptocurrency exchanges face amid the fast-paced development of new tokens.

Rethinking these processes could lead to a more efficient and manageable system for both the exchange and its users.

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