on the crypto
Coinbase is one of the leading cryptocurrency exchange platforms out there. Founded in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase now boasts 89 million users and over $ 278 billion in assets on the platform. With all this money being exchanged, there are bound to be some technical difficulties along the way, and Coinbase is constantly working to adapt accordingly.
Do them in the previous listing process
Just recently, in April, stocks emerged from an Ethereum wallet that bought $ 400.000 worth of tokens on the platform before those tokens were officially listed. Hours later, the list was made public, and the price of these tokens had risen by 42%.
This is an example of front-running; a market term similar to insider trading. This is a case where a user has access to inside information and is able to trade before the general public. In the case of Coinbase, it appears that some traders have found out how to find out which assets will be listed before they officially appear on the platform.
Brian Armstrong replies
Co-founder and CEO Brian Armstrong posted a blog post addressing new systems to help lessen the front-running problem. He stated: “In the future, we intend to publish externally once the decision to list an asset has been made, but before any technical integration work begins, to try to prevent the data on the chain from giving a signal to more traders. beware. Furthermore, we only intend to publish once a decision has been made affirmatively to the list, vs when we have decided to consider the listing of an asset ”.
Looking forward to Coinbase
With many cryptocurrency and asset exchanges, it's important to look at its roadmap to see where it plans to go, what milestones lie ahead, and when it plans to meet those milestones. This can give the trader a chance to understand if he is making a good investment. We see that Coinbase is making efforts to be open with its lists by publishing blog posts sharing the assets it is considering.
Overall, the changes outlined by Armstrong for Coinbase are expected to have a positive effect by creating more security for Coinbase customers now, as well as looking forward to greater decentralization in its protocols in the future.
