Game rules – Coinbase was already suspected of insider trading in 2017. The scholarship subsequently enjoyed a relaxation. Some cryptocurrencies continue to make such claims today. These claims directly affect the process of noting a token on the platform. Coinbase CEO Brian Armstrong has given lengthy explanations to defend his company against these allegations. Explanations.
List of cryptocurrencies on Coinbase: no tax!
Brian Armstrong, tried to clarify something gray areas related to its token listing processin a blog post from April 28, 2022. This statement from Stock Exchange No. 1 aims to soothe concerns related to two main issues.
Cryptophiles, on the one hand, would have said “that they did not always understand why coinbase listed some assets and not others “. They would also have made remarks that” people thought buy certain assets just before that ”the stock exchange announces their listing. These investors would then take advantage of “price movements” “sometimes” after listing announcements about said tokens.
Brian Armstrong first recalled that the process of listing an asset on the platform is “rigorous and time consuming”. Some tokens in particular are much more difficult to analyze for technical reasons.
Thus, Coinbase would not demonstrate no “favoritism”. The exchange would review “the assets as soon as possible”. It will further list all cryptocurrencies within its capabilities as long as the platform considers it “secure and legal”.
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Token list and information asymmetry: it can happen!
However, the CEO of Coinbase wants to be reassuring. In fact, Brian Armstrong admits that some customers – not all – can access data which allows them to predict a possible price of an asset:
“This could be, for example, using on-chain data to detect when Coinbase is testing new asset integrations or using small differences in Coinbase API responses to detect when assets are configured but not yet launched.”
Brian Armstrong also acknowledges that people “inside Coinbase” can reveal “intentionally or unwillingly”information to people outside.
However, the stock exchange allegedly has a “zero tolerance” policy regarding such illegal activities. It would conduct investigations with a view to combating such acts. Employees involved in such activities will then be “immediately dismissed and referred to the competent authorities (potentially for prosecution)”.
The CEO of Coinbase also recalls the existence of one trade policy. It oversees stockbrokers and other insiders who can buy or sell the company’s shares. This policy also prohibits these individuals from trading in assets listed on the platform.
Adding tokens to Coinbase: modifications for more fair play
It is then necessary to combat possible asymmetries in the information. To do this, Coinbase plans to bring changes to the token listing process over the next few quarters.
In the future, Oslo Børs will announce the listing of an asset once this decision has been made, already before the start of the technical integration work for this assessment. Investors who closely monitor on-chain data will therefore not be able to benefit from such technical information alone.
Brian Armstrong further recalls that in March 2022, the stock exchange had announced its use of a new experimental label. This mark will be for certain assets that are only suitable for experienced traders.
This label is intended to warn users of the platform about the specific risks they take when trading these assets. The exchange plans to develop new tags and features that go in this direction.
Coinbase will also allow the community to rate and comment assets listed or not on the platform.
The stock market is finally planning to invest more improve your ability to evaluate a token : analysis of the asset’s economic model, use of on-chain survey tools. Coinbase will thus improve the range of assets that should be listed or removed from its platform.
These rather detailed explanations of the process of listing a token on Coinbase come a few days later the stock exchange has added StepN, GST and GMT tokensto its platform.
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