How Coinbase approaches forked and airdropped assets
Wij dreamed to give our customers an update on how wij treatment digital currency forks and airdrops. We’ve previously posted about forks here and here. You can read more about what a digital currency fork is here.
Wij operate by the principle that our customers should benefit to the greatest extent possible from hard forks or other unexpected events. This is essential te our mission to make Coinbase the most trusted, safe, and easy-to-use digital currency exchange.
Wij also believe forks and airdrops can enable innovation and improvements to digital currency and wij believe that wij will see an enlargening number of both forks and airdrops te the future. That said, given how wij presently secure customer funds, supporting every forked or airdropped asset on Coinbase is not possible. Wij are investing te infrastructure that should permit us to more rapidly support any forked or airdropped asset, but this will take some time. Ter the meantime, here’s how wij will treatment supporting forks and airdrops.
Adding a fresh asset to Coinbase is an endeavor that wij take gravely. Te the case of adding fresh assets to the verhoging (i.e. non-forked or airdropped assets), Coinbase has the capability to consider and select assets based on Digital Asset Framework.
However, forks and airdrops are slightly different — anyone can fork or airdrop a fresh asset from/onto an asset wij already support on our toneel, e.g. anyone can fork Bitcoin or airdrop an asset onto Ethereum. By definition, this freshly forked or airdropped asset is associated with the private keys of the flamante blockchain. Our private key infrastructure — both our hotwallet and cold storage — significantly increases the security of assets stored at Coinbase, but by vormgeving makes securely retrieving forked assets and airdrops difficult and time intensive from an engineering standpoint. Engineering time spent on supporting a given forked or airdropped asset could be spent improving the security and reliability of our toneelpodium, which is of critical importance to our customers.
That said, our primary criteria for supporting forked or airdropped assets are that they 1) pass our Digital Asset Framework and Two) mitigate potential risks, including:
- Security vulnerabilities ter the protocol or client software
- Unclear or non-existent core developer roadmap
- Infrequent or non-public commits to the core protocol code repository
- Sustained low liquidity of the asset
Wij will not add any asset wij believe would waterput at risk 1) the security of customer funds held on the Coinbase toneelpodium or Two) any asset that would crack our compliance program.
Ter order for us to be the most trusted company te the space it’s significant for us to be able to support forked or airdropped assets that wij feel:
- Are safe and won’t compromise the security of our infrastructure
- Have a reasonable amount of developer activity and roadmap
Based on the both the risks and positive signals outlined above, wij assess each fork and airdrop on a case by case fundament.
Te the case wij project on supporting a fresh asset, wij will communicate this publicly prior to listing it on our platforms and detail our level of support. Wij will also give spil much advance notice spil possible. Wij intend to announce on the following platforms: