Are too many tokens a problem for Coinbase?
Brian Armstrong’s proposed fix sparks debate over investor safety and efficiency

The CEO of Coinbase, the largest cryptocurrency exchange in the US, has called for a major overhaul of the platform’s token listing process. The announcement follows a staggering increase in token creation, which is complicating the investment landscape.
In a Jan. 24 post on X, Coinbase CEO Brian Armstrong highlighted the challenges of managing the explosive growth of new cryptocurrencies.
“We need to rethink our listing process at Coinbase, given there are ~1 million tokens a week being created now, and growing,” Armstrong wrote. He argued that manually evaluating each token is no longer viable and proposed a shift from an "allow list" approach to a "block list" system. The new process would rely on customer reviews and automated analysis of on-chain data to streamline token vetting.
Armstrong’s proposal underscores the potential risks for investors in an environment flooded with tokens. Critics warn that the lack of thorough evaluations could make it harder to distinguish between credible projects and scams, especially for less experienced traders.
The current Coinbase listing process involves a rigorous, multi-step review, including due diligence and regulatory checks. Armstrong’s suggestion to simplify the process reflects a growing tension between efficiency and maintaining investor trust.
Backlash over listings
The proposal has sparked criticism from key industry figures. Tron founder Justin Sun accused Coinbase of bias and inefficiency, pointing out that his cryptocurrency, TRX, has been under review for seven years without being listed.
“This has nothing to do with TRX itself but rather reflects Coinbase’s loss of the most basic fairness and industry judgment when it comes to new listings,” Sun said on X. He also alleged that Coinbase demanded $330 million in fees to list TRX, including a substantial Bitcoin deposit.
Meanwhile, crypto influencer Ansem suggested that Coinbase hire experts to identify high-priority tokens. “They can tell you the 10 out of 1 million tokens that need to be listed as soon as possible,” Ansem said.
Toward a hybrid future
Armstrong also revealed plans to deepen Coinbase’s integration with decentralized exchanges (DEXs), envisioning a future where users won’t need to differentiate between trades on centralized and decentralized platforms.
This vision comes as the crypto industry anticipates regulatory changes under President Donald Trump’s new administration. Armstrong noted at the World Economic Forum in Davos that discussions among major market players focused heavily on the administration’s plans for crypto.
With the surge in token creation showing no signs of slowing, Armstrong’s call for change has ignited a broader debate about balancing innovation, efficiency, and investor protection in the rapidly evolving crypto space.