Listing Frenzy! Coinbase Adds Nearly 100 Crypto Assets for Trading in 2021
The expansion of Coinbase in terms of its tradable assets has touched the three-digit mark of 139. The exchange platform added 83 assets in 2021. There are a few more days left in 2021. It may or may not add more tradable assets, but the current number of 83 has caught everyone’s eyes.
Coinbase started with only 4 tradable assets in 2017. The number was well-justified for a newly launched exchange platform. It increased to 14 tradable assets in 2018. This was followed by the increase of an average of 10-20 tradable assets each year.
Listing of 83 tradable assets in 2021 has raised questions as the number in itself is hugely based on its previous trend.
However, if one goes beyond this trend, then it becomes obvious that the new listing is in complete support of the growth of Coinbase as an exchange platform.
For instance, the combined market value of its tradable assets was $50 billion in 2019. It went up to $200 billion in 2021. The numbers prove that growth is a natural part of the business process.
One question that Coinbase has started to battle with is if the huge addition of tradable assets is for money.
The question has a simple answer that is evident from the principles of Coinbase. No!
Coinbase, since its inception, has been making sufficient money through monthly transactions. It is only with the determination that it is now the second-largest crypto exchange platform in the world.
It has a backing of 6 million users performing the transactions every month. The number has more than doubled by what it was by the end of 2020.
The determination to make what customers want has helped the crypto exchange platform to earn enough money for its operations. Adding more tradable assets does not appear to be centered around increasing its bottom line.
Bryan Armstrong, the Chief Executive Officer of Coinbase, had laid down the ideologies of Coinbase at the time of venturing for the first time. The objective was to offer more economic freedom, better management of property rights, and develop a more efficient system of exchange for everyone in the world.
Coinbase recently shifted from a merit-based approach to a pragmatic approach to list a tradable asset on its platform.
It increases transparency as the recently adopted approach gives more power to the market in deciding which assets should be listed. The approach studies the market value of the assets before listing them on the crypto exchange platform.
There is also a possibility that the newly added assets, along with the previously added ones, will be considered to be the Securities by the US Securities and Exchange Commission.
The SEC is constantly working to treat some of the stablecoins as securities, giving them the acceptance they deserve.
A constructive relationship with the regulator will play an important role in getting them recognized as securities. As Melissa Strait, the Chief Compliance Officer at Coinbase, states: Crypto will gain widespread acceptance based on how constructive the relationship an exchange platform has with regulators and agencies.
The Psychology Of Coinbase
With the answer to the previous question being a clear No, it is also important to understand the kind of psychology that Coinbase has been carrying since it was founded.
It is known to make absolutely no judgments while listing an asset on its platform. The key is that it must tick all the boxes to get listed. Coinbase is aware of the legal circumstances under which it has to operate. The crypto exchange platform does that in an organized and process-driven manner.
The Crypto market sees the addition of 83 tradable assets as a bullish sign for the industry. Coinbase giving customers what they want is a great step that is supported by a formal approach.