GDAX, Coinbase’s order-book marketplace, just released a new framework to guide which new assets the exchange(s) will add in the future. This is in line with the company’s May decision to “shift to supporting more types of digital assets over the coming year.”
The minds behind Coinbase and GDAX, America’s #1 crypto exchange providers, are looking to take their marketplaces to the next level by finally adding new digital assets beyond the Bitcoin, Ethereum, and Litecoin cryptocurrencies they offer now.
The move comes as no surprise, as the company declared in a May blog post announcing Litecoin support that they’d be striving to add new digital currencies to their exchanges as soon as Q4 2017.
In line with this proliferation strategy, GDAX head Adam White today released the new “GDAX Digital Asset Framework” — what will be the modus operandi for which coins the exchange adds going forward.
GDAX’s Framework Has Six Major Factors
While there are numerous sub-factors illustrated in their new framework, GDAX’s six main factors of scrutiny for any given cryptocurrency project henceforth are:
- Mission and values
- Legal and compliance
- Market supply
- Market demand
- Crypto Economics
This is simply to say that GDAX wants cryptocoin projects to align with GDAX’s goals in these six categories, before the company will consider listing any new assets on their open-book marketplace.
Let’s dig a little deeper to see what GDAX’s precise considerations are.
Factor 1: Mission And Values
First off, the exchange will only admit new assets that similarly adhere to:
- Open financial markets
- Technologies that solve problems or create value
- Economic freedom
- Equality of opportunity
Factor 2: Technology
Secondly, GDAX will only consider projects that have demonstrated auditable prowess in:
- Security and coding capabilities
- Team composition
- Orderly governance, as in how project consensus is achieved
- Scalability, and projects that have verifiable ability to scale
Factor 3: Legal And Compliance
The exchange is also only interested in projects that are compliant with:
- All relevant domestic and international regulations
- GDAX’s user agreement
Factor 4: Market Supply
GDAX will only list currencies that have adequate liquidity, as demonstrated by:
- High trade velocity
- High circulation
- Being multi-regional, available on numerous exchanges across the world
- Fiat-to-crypto trading pair possibilities
Factor 5: Market Demand
Coins will also have a better chance of being accepted on GDAX if:
- Customer demand is high
- Developers have teeming repositories
- Community activity is high
- External stakeholders exist (e.g. investment firms)
- Satisfactory amount of nodes
Factor 6: Crypto Economics
Gdax will also scrutinize coins based on:
- What token standard is used
- What the coin’s utility is
- Inflationary factors
- Team ownership is minority stake in the project
- Hard-set total supply
- Project having a code of ethics
Coins That Could Potentially Meet GDAX’s New Standards
Now that these guidelines have been released, the million dollar question is: what coins meet these standards? And thus what coins will be listed on the heels of these standards?
Well, the natural spot to start looking is the top 20 cryptocurrencies by market cap at press time.
Right now, the top 10 looks like this:
And the 11th through 20th coins are as follows:
Considering GDAX’s aforementioned factors, safer bets for coins that meet these standards and could be added to the exchange imminently include Dash (DASH), IOTA (IOT), OmiseGO (OMG), Zcash (ZEC), and Lisk (LSK).
It’s always possible that the team could reach beyond the top 20, too. But the top 20 cryptocurrencies by market cap are successful for a reason, suggesting many of them are already mostly, if not completely, in line with GDAX’s new factors.
Rumors of New Coins Have Swirled in Recent Weeks
In recent months, crypto enthusiasts have witnessed numerous rumors materialize about new coins potentially coming to Coinbase/GDAX duo.
For now, there’s no telling whether this screenshot is doctored or authentic, so make up your own conclusion.
Some in the space even think Coinbase is the infamous “Golem accumulator” that Redditors on r/ethtrader have been musing on in recent weeks, as a particular ETH address is currently accumulating millions of GNT, leading many to wonder if this is Coinbase gaining liquidity on a new, soon-to-be-listed digital asset.
What do you think? What coins would you personally like to see listed on America’s #1 crypto exchanges? Let us know where you stand in the comments below!
Images via GDAX, Coincap, Imgur