SoundOn Listed on US Cryptocurrency Exchange... Contrasted with Korea's Crackdown on Junk Coins

Coinbase CEO "Will List All Coins with Legal Basis"
Abandons Conservative Listing Stance, Expands Trading Fee Strategy
Changes Position Following Nasdaq Listing
Shifts Investment Responsibility to Investors
Coinbase Stock Surges 10%

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Coinbase, the largest cryptocurrency exchange in the United States, is aggressively expanding the variety of coins it lists for trading. This contrasts with the moves of Korean exchanges, which have been delisting so-called "junk coins."

As Coinbase changes its previous stance of restraining from listing various coins, it is expected to have an impact on the future coin ecosystem.

On the 28th (local time), cryptocurrency media Decrypt reported that Coinbase has listed 29 new coins so far this year. Decrypt described Coinbase's trend of expanding listed coins as record-breaking.

Coinbase had been cautious about listing various altcoins. It recently started trading Dogecoin, which was supported by Tesla CEO Elon Musk. Meanwhile, Shiba Inu, a coin mimicking Dogecoin, began trading this month.

The number of cryptocurrencies for which Coinbase provides trading services

It is rumored that Coinbase was conservative about listing new coins before its Nasdaq market listing to maintain its reputation by attracting only stable coins.

Change from Conservative to Aggressive Approach Triggered by Nasdaq Listing

Even in 2017, when many new coins were listed, Coinbase listed only three coins. This was in contrast to competitors like Binance, which listed dozens of coins.

However, Coinbase listed 21 new coins last year and started trading 29 new coins in the first half of this year alone. This is the largest number of new listings in the first half of the year in Coinbase's history.

It is presumed that Coinbase revised its previous stance following its stock market listing, adopting a more aggressive growth strategy.

Brian Armstrong, CEO of Coinbase

On this day, Brian Armstrong, CEO of Coinbase, stated on Twitter that "we actively support the listing of all coins in the world that have no legal issues."

"No Listing Restrictions, but Investment Decisions Should Be Made by Investors"

He also explained, "Apart from stability and legal grounds, we will not express any opinions on coins. We trust the freedom of the market and believe consumers should have choices in the cryptocurrency economy." He emphasized, "This is how we innovate the most."

Armstrong drew a clear line by stating that Coinbase listing a coin does not mean endorsement of that coin, and insisted that "investors should make their own judgments and invest at their own responsibility."

After the Q1 earnings announcement, Armstrong also said he would accelerate efforts to list more coins, explaining, "The world is changing so fast that we cannot keep up."

Expanding coin listings can help Coinbase secure a larger customer base and increase trading fee revenue. Some analysts initially pointed out that the relatively small number of coins traded on Coinbase compared to competing exchanges was a risk factor.

The increase in the number of traded coins is also seen as a response to the cryptocurrency market entering a downturn and the decline in trading fee income.

The "Coinbase Effect," where the price of individual cryptocurrencies rises upon listing on Coinbase, is also expected. Developers of new coins can attract more funding.

On this day, Coinbase's stock price surged 10% to $247, approaching its listing reference price of $250.

Korean Exchanges Delist Junk Coins Amid Regulatory Risks

Coinbase's stance contrasts with Korean cryptocurrency exchanges, which are actively delisting junk coins amid regulatory risks.

Korea's largest exchange, Upbit, recently delisted 24 out of 25 coins under investment caution. During this process, some coins experienced volatile price fluctuations.

Some coins even showed a bizarre phenomenon of soaring 32,000% immediately after the exchange decided to postpone delisting.

Meanwhile, according to CoinMarketCap, as of 5 p.m. on this day, Bitcoin was trading in the $43,600 range, up 4.6% from 24 hours earlier; Ethereum surged 15% to around $2,210; and Dogecoin rose 5.4% to about 25 cents.

The Bitcoin rally on this day is attributed to Mexican billionaire Ricardo Salinas Pliego's announcement the day before that his bank is working to accept Bitcoin.