Why did Coinbase have to list Dogecoin?

Coinbase lists everything…

“Coinbase Institutional has become a support for sophisticated investors and institutions that invest in digital assets”

-specified in one of their most recent announcements.

The launch of Coinbase Prime and the release of Coinbase shares for public trading only supported this perception. But according to CEO Arm Armstrong, that may change. In a recent tweet, the CEO claims:

1 / Reminder about how Coinbase lists assets: our goal is to list * every * asset where it is legal to do so.

– Brian Armstrong (@brian_armstrong) June 28, 2021

In fact, Armstrong also pointed out that the crypto exchange only makes sure that the asset meets its listing standards for security and legal reasons.

Conservative Coinbase

Now, for a stock market with a “conservative” reputation, this would be a turning point. In this case, however, this is not the case, because the exchange has already made similar statements in the past. For example, in 2018, Armstrong said at the Disrupt event that Coinbase could list “millions” of tokens.

For the crypto exchange, which traded less than 10 cryptocurrencies in December 2018, that was a big statement. Now, immediately after the xchange announced an asset survey for only 30 different cryptocurrencies, the spirit and purpose were clearly visible.

Coinbase wanted to expand. And she wanted to expand fast. At the time, she was recovering from a terrible “crypto-winter” that affected trading volumes around the world and wanted to take an example from Binance’s handbook with its own successful and aggressive leafing strategy. A calculating business decision could explain why the CEO stepped down and said something similar this time as well.

The timing is particularly interesting because its biggest competitor, Binance, has just received a warning from the British FCA.

DOGEing standards

Earlier this month, Coinbase announced that its users would now be able to buy, sell, convert, send, receive or save DOGE. A few weeks later, Coinbase Pro revealed that she was continuing to list Shiba Inu, the self-proclaimed “Dogecoin killer.” Although it has now been postponed, the motive for the double announcement was the same – Coinbase wants to benefit from the popularity and volumes associated with these alts.

From a business perspective, this makes sense. But do DOGE and SHIB really meet the above-mentioned listing standards?

It can be argued differently. Just look at Dogecoin, for example. There is an entire “Degree of Centralization” section in the Coinbase Browse Guide. Much has been written and said in recent months about the issue of centralization concerning Dogecoin. What’s more, apart from its endless supply and reputation, DOGE has usually always been considered a bubble, a bubble that will burst very soon.

Conclusion

DOGE is an asset which, at first sight, appears to be in conflict with those criteria for listing. So why did the exchange list it? Given Coinbase’s intent, it may be time for institutional investors to be a little wary.