What Happened: Brian Armstrong, CEO of crypto exchange Coinbase Global Inc (NASDAQ:COIN), said that the exchange would list every crypto asset where it is legal to do so.
2/ Outside of our listing standards (for safety/legality), we don’t offer an opinion on the value of each asset. We are asset agnostic, because we believe in free markets and that consumers should have choice in the cryptoeconomy. This is how we’ll have the most innovation.
— Brian Armstrong (@brian_armstrong) June 28, 2021
“But in general, one should not take being listed on Coinbase as an endorsement of that asset (outside of meeting our minimum standards),” said Armstrong in a tweet.
Despite the CEO’s comments, however, most crypto assets still rally significantly upon being listed by the exchange, in a phenomenon that has come to be known as “The Coinbase Effect.”
Why It Matters: At the time of writing, Coinbase had listed 63 cryptocurrencies on its platform, with over 35 more crypto tokens being evaluated.
Earlier this month, the exchange introduced a new tool called ‘Solidify’ to automate the detection of smart contract risks, and speed up the evaluation process for tokens to be listed.
Read also: Cathie Wood Loads Up Heavily On Bitcoin Plays Coinbase, Grayscale Bitcoin Trust On Dip
In his series of tweets, Armstrong also said that Coinbase would be providing tools to customers to review and rate the various crypto assets listed to promote more informed decisions based on the views of the community overall.
Price Action: Coinbase shares traded at $257.08, up 4.21% at the time of writing.
Meanwhile, the leading crypto asset Bitcoin (CRYPTO: BTC) regained momentum above $34,000 after dropping under $30,000 last week.
At press time, Bitcoin was trading at $36,227, gaining 3.72% overnight.
Image: Courtesy of Coinbase
