The New York regulators are by far one of the most scrutinizing regulators for the cryptocurrency space. Coinbase has announced that customers residing in New York can now purchase XLM, along with BTC, ETH, and other assets already available in the state, September 26, 2019.
Listing Spree and Diversification
Coinbase has embarked on a research spree, promising customers they will be exploring support for a large number of digital assets in the coming days.
In a podcast with Peter McCormack, ex Coinbase CTO, Balaji Srinivasan, remarked that Coinbase is listing a number of altcoins because of demands raised from customers.
The list of potential assets includes the likes of Chia, Dfinity, and GRAM. It also includes widely innovative network like AVA which are implementing radically new consensus mechanisms.
Despite the perils brought about by crypto winter, Coinbase has continuously increased the depth of their services offerings and even increased the AUM of their institutional custody wing.
As one of the largest companies in the space, valued at nearly $8 billion, their continued expansion into new lines of business will strengthen their revenue flow.
Binance recently announced lending services on the exchanges, and industry participants have opined that it is only a matter of time before Coinbase does the same. This could be hindered by the fact that they are incorporated in the United States and face the wrath of the SEC if they indulge in lending without necessary licenses.
Criticism Around Listings
Many prominent figures have disagreed with the route Coinbase is taking by rapidly listing digital assets.
A majority of those listed are VC funded projects, and it is believed that creating liquidity through exchanges will fuel the probability of these investors dumping large amounts of token on unsuspecting retail investors.
As previously mentioned, Coinbase has resorted to finding new tokens to list at the behest of their customers. So maybe it isn’t all too fair to blame the company themselves when retail demand is asking for this.
On this note, Hedera Hashgraph has faced significant backlash off late for their value deterioration and allegedly false claims regarding scalability and throughput.