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Coinbase: These 14 factors will affect the evaluation of the currency

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Coinbase wants to standardize and make the process more transparent.

Original source: Chain Catcher

In January of this year, Coinbase launched the Asset Hub, which opens the door for asset issuers and simplifies our IPO process. Coinbase's standard COIN evaluation framework uses data submitted through the Asset Hub to ensure that every capital generation supported by Coinbase meets our eligibility requirements for legal, compliance, and technical safety reviews. People provide more guidance on what we expect, as well as tips for getting your assets properly validated.

From the way assets are generated and encoded to the way they work in the crypto economy, certain activities and attributes may raise additional issues and require further review by our team. Here are some common reasons we may need to spend time reviewing your application. But this is only a guide, and even if one or more of the descriptions fit your asset situation, your application may still be approved.

First, investment or profit

1) The developer or publishing team has anticipated that the asset is an investment or security and the user or holder will see an increase in the price of the asset or a return on the investment.

2) The initial token is allocated to the user (in exchange for fiat currency or other cryptocurrency) during a sale or offering activity.

3) The platform associated with the asset has no real or supported use.

4) The asset has been allocated prior to its intended or specified purpose.

5) The application does not contain information about the UBO (ultimate beneficial owner), senior management or key people associated with the project.

6) There is limited or conflicting information in the application regarding sources and methods of fundraising.

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

Second, superuser permissions

Many assets implement privileged roles that have the ability to unilaterally take administrative actions, such as arbitrarily changing network functionality or appropriating user funds. Abuse of these privileges would threaten Coinbase's ability to securely host customers' assets, reducing the likelihood that Coinbase would list tokens. Coinbase expects issuers of assets to adhere to the "minimum privilege" principle, under which the scope of privileged roles should be narrowed to the minimum functionality required. This includes when the issuer of the asset waives privileges that are no longer relevant. In cases where these privileges cannot be eliminated, we expect asset issuers to provide detailed policies and procedures for inheritance-based key management and use, especially for redundant operations that affect users. A trustee who can certify that a character is able to take action before a quorum has been reached.

Third, the degree of centralization

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

2) A central team can control the functionality or code that enables or maintains the platform, with little or no contribution from an unrelated third-party developer.

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

4) The core team of the project has a lot of assets that can be used for community governance to force voting decisions. Similarly, too much sharing of assets controlled by one party in a proof-of-stake blockchain will increase the risk of correcting the mined blockchain in that direction. This can lead to censorship or double flowering.

Four, newer and suspected verification of the 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, the auditor or security engineer cannot easily analyze the behavior of the token, precluding high-credibility review and causing significant delays.

2) The asset has never received a security audit from a reputable auditing firm, especially an industry standard where the source code is not used in the case of complex or novel code. By using heavily vetted standards, such as OpenZeppelin's vast repository of smart contracts. Use EIP as a guide if you want to implement special features, such as underchain signing or transaction linking.

We hope that this guide will make it easier for asset issuers and their teams to navigate asset center requirements and start the listing process. Complete, correct, and well-documented applications may receive timely reviews.