Billionaire investor Mark Cuban has proposed that creators of memecoins should fill out a registration form as part of the listing process. In a post on X, Cuban said that the mass proliferation of memecoins that the crypto industry is currently experiencing is due to the lack of registration criteria.
Cuban’s comments came in response to a statement by Coinbase CEO Brian Armstrong on the need for a new listing process for the exchange. Armstrong had earlier noted that the current process for listing tokens is inadequate.
According to Armstrong, around one million tokens are created weekly, making it impossible to evaluate each one before listing it. The Coinbase CEO also added that regulators need to understand the crypto industry’s unique nature.
However, Cuban believes that the solution to this problem is for memecoin creators to register, noting that several know-your-customer (KYC) tools can do this and still ensure same-day approvals.
He said:
“We need a simple registration form that is tailored towards meme coins. There are enough KYC tools that can make it same day approval, with a fee to cover costs.”
The billionaire added that this is the only way to save the crypto industry where the massive volume of useless memecoins is starting to overwhelm the limited quality project and could hurt the industry. This is not the first time Cuban shared an opinion on memecoins with the billionaire once, suggesting that memecoin could be used to clear the US national debt.
Crypto community criticizes Cuban proposal
However, Cuban’s idea of a registration form for memecoin creators has faced pushback from the crypto community, with many noting that this defeats the whole purpose of decentralization. One user noted that requiring KYC will stop several users from buying memecoins.
Meanwhile, others believe that the investors should be left to decide what they believe is quality, while regulators must focus on prosecuting fraud. Venice.ai founder Eric Voorhees noted that several crypto tools allow crypto investors to assess the quality of memecoins.
He said:
“Crypto ecosystem sites can do and are far better at parsing quality from garbage. There are already whitelists of tokens that different providers can adhere to. Messari or CMC or defipulse or a dozen others can permit coins to register with them and compete to do the best job filtering.”
However, Cuban clarified that registration is only for the person creating the token rather than the investors. Other people also appear to agree with his view, including Software engineer Vincent Van Code, who observed that there need to be standards for listing tokens, and exchanges that fail to insist that tokens meet the requirements before listing a token are complicit if there is a rugpull.
Memes down 11% in 24 hours
Meanwhile, the debate over regulating the memecoin listing process highlights one of the major challenges crypto exchanges face. Given how valuable a major exchange listing can be for a token, many users have questioned the arbitrary process for listing.
These concerns have become more evident in recent weeks, with memecoin becoming more mainstream after the launch of the TRUMP token. Despite the mainstream attention, memecoins have struggled with other crypto tokens today with over an 11% slump in market cap.
TRUMP is one of the biggest losers, dropping almost 10% to $26.55, representing a 31% decline over the past seven days. However, other major cap memecoins such as DOGE, SHIB, PEPE, PENGU, and BONK have also seen losses varying from 19% to 7%.
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