Coinbase: These 14 factors will affect the assessment of listing

In January of this year, Coinbase launched the asset hub, which opened the door for asset issuers and simplified our listing process. Coinbase’s standard listing evaluation framework uses data submitted through Asset Hub to ensure that every capital generation supported by Coinbase meets our eligibility requirements for legal, compliance, and technical security reviews. People provide more guidance on our expectations and tips to get your assets properly verified.

From the way assets are generated and encoded to how they work in the crypto economy, certain activities and attributes may cause other issues and require further review by our team. The following are some common reasons. It may take time for us to review your application. But this is only a guide, and even if one or more of the descriptions are in line with your assets, your application for listing may still be approved.

1. Investment or profit

1) The developer or the issuing team has anticipated that the asset is an investment or security, and the user or holder will see the asset’s price increase or return on investment.

2) Initial tokens are allocated to users in sales or offering activities (in exchange for fiat currency or other cryptocurrencies).

3) The platform associated with the asset lacks practical or supportable use.

4) The asset has been allocated before its intended or designated purpose.

5) The app does not contain information about UBO (ultimate beneficial owner), executives or key people related to the project.

6) The information on sources and fundraising methods in the application is limited or conflicting.

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7) This item is closely related to the business categories prohibited in Appendix 1 of the User Agreement.

Two, super user permissions

Many assets implement privileged roles, which have the ability to unilaterally take management measures, such as arbitrarily changing network functions or occupying user funds. If these privileges are abused, it will threaten Coinbase’s ability to safely custody customer assets, thereby reducing the possibility of Coinbase listing tokens. Coinbase hopes that asset issuers abide by the “least privilege” principle, under this principle, the scope of privileged roles should be minimized to the minimum required functions. This includes situations where the asset issuer waives privileges that are no longer important. In the event that these privileges cannot be eliminated, we hope that asset issuers can provide detailed strategies and procedures to manage and use keys based on inheritance, especially for redundant operations that affect users. The custodian holds, the custodian can prove that the role has reached a quorum before taking action.

Third, the degree of centralization

1) The network has centrally controlled routines or validators that can collude to influence the state of the blockchain.

2) The central team can control the activation or maintenance of the platform’s functions or code, while unrelated third-party developers have almost no contribution.

3) The keys required to perform privileged operations (such as suspending transactions, modifying token balances or completely changing token logic) are controlled by a single person or stored in a separate system.

4) The core team of the project has a large number of assets that can be used for community governance to force voting decisions. Similarly, excessive asset sharing controlled by one party in the proof-of-stake blockchain will increase the risk of revising the mining blockchain in this direction. This may lead to censorship or double spending.

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Fourth, the newer and suspected verification code

1) The source code is private, or for the Ethereum project, the source code cannot be verified by Etherscan. Without access to the source code, auditors or security engineers will not be able to easily analyze the behavior of the token, which eliminates high-confidence reviews and causes serious delays.

2) The asset has never received a security audit from a reputable audit company, especially the industry standard that the source code is not used when the code is complex or novel. Through the use of rigorously vetted standards, such as OpenZeppelin’s huge smart contract repository. If you want to implement special functions (such as off-chain signatures or transaction links), please use EIP as a guide.

We hope that this guide guides asset issuers and their teams to more easily browse the asset center requirements and initiate the listing process. Complete, correct and well-documented applications may receive timely review.

Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.