Dan Romero, Vice President of Coinbase, explained the reasons for the platform’s recent announcement. The firm stated that they are examining several tokens in the market to enhance support for various new crypto assets. The move is significant in contrast to Coinbase’s long known careful approach to supporting individual tokens.
He highlighted the reasons for this drastic move while speaking to Linda Shin on an Unchained podcast episode. As per a suggestion, Coinbase is failing in its approach to add new experimental coins instead of adding already established coins like Bitcoin. Commenting on that, Romero said that the platform is reforming based on customer feedback.
Customer-Driven Crypto Listing Strategy
Also, the recent developments in the cryptocurrency industry have made the firm to result in these changes. Dan Romero confirmed that the latest strategy was primarily influenced by customers requesting the addition of new cryptos to the platform. He said:
“I think our plan now is to list as many cryptos as we possibly can within compliant, legal constraints. Moreover, we want to make information and quality signals easily available for customers so that they can determine if a cryptocurrency makes sense for them.”
Romero explained that they decided to listen to their customers to guarantee the growth of their customer base. Also, he said that in the event customers do not get what they want on Coinbase, they will shift elsewhere. He believes that the ability to switch cryptos is the fundamental piece of functionality in the entire ecosystem.
“Our recent shift in strategy majorly relies on the customers. When we asked customers the number one thing they want, they told us it’s adding new cryptocurrencies to the platform.”
In spite of the SEC’s position on registering securities Romero expressed confidence in Coinbase’s legal and security procedures. The platform is adding new tokens working in tandem with in-house checks and balances. That method aims to guarantee that none of the added tokens is declared illegal by the SEC in the future.
The company’s Digital Asset Framework has let Coinbase create an efficient process that assures quality. Moreover, the framework re-affirms the brand’s position as “trusted and easy to use.”
The XRP Notable Absence on Coinbase
Earlier, Dan Romero said that the company aims at registering 90 percent of legally compliant assets. He also insisted that Coinbase wishes to emulate the traditional stock market in the provision of as many investment selections as possible. When asked, Romero said:
“With a traditional stock exchange, they list everything above a certain quality bar. And ultimately investors and individuals make decisions on what to invest.”
Many users questioned the failure of Coinbase to add XRP to their platform. Nonetheless, the cautious approach is attributed to the pending federal court case between a group of investors and Ripple Labs.
The investors claim that the XRP asset is a security. Hence, Coinbase currently lists the tokens without any legal frictions with regulatory bodies. They believe that the new listing strategy will work since they will offer customer-oriented high-quality solutions.
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