TLDR
- SEC clears DoubleZero (2Z) as non-security, supporting its DePIN model.
- Coinbase lists DoubleZero after the SEC’s favorable no-action letter.
- DoubleZero’s listing follows successful launches on Binance and Kraken.
- 2Z price rises 3% after Coinbase listing and SEC’s no-action decision.
Coinbase has added DoubleZero (2Z) to its listing roadmap after receiving a favorable decision from the U.S. Securities and Exchange Commission (SEC). The SEC’s no-action letter confirmed that DoubleZero’s token distributions will not face enforcement, helping the DePIN protocol advance. The move is a significant step for both Coinbase and DoubleZero, marking a broader trend of growing interest in decentralized physical infrastructure networks (DePIN). The news also comes with an increase in trading activity for 2Z.
Coinbase Adds DoubleZero (2Z) to Its Listing Roadmap
Coinbase has officially announced the inclusion of DoubleZero (2Z) on its listing roadmap. The news comes after the U.S. SEC’s decision to take no enforcement action against the protocol’s token distribution. The SEC clarified that the 2Z token does not meet the definition of a security, but functions as an incentive within the DePIN ecosystem. This decision aligns with the SEC’s stance to support novel technologies like DoubleZero that aim to improve blockchain scalability.
DoubleZero operates on the Solana blockchain and is a key player in the decentralized physical infrastructure network (DePIN) space. DePIN projects, including DoubleZero, aim to enhance blockchain performance by utilizing real-world infrastructure such as storage, telecommunications bandwidth, and energy. Participants in these networks offer services in a peer-to-peer, distributed manner, making such projects attractive in a blockchain ecosystem that seeks real-world utility and scalability.
SEC’s No-Action Letter Validates DoubleZero’s Token Structure
The SEC’s no-action letter, issued by the Division of Corporation Finance, confirmed that DoubleZero’s token model does not fall under the agency’s jurisdiction. According to the SEC, the 2Z token is designed as a functional incentive, rather than an investment with an expectation of profit. This clarification supports the idea that DePIN projects like DoubleZero are not securities, which is a key factor in their potential growth and integration into the broader crypto space.
Hester Peirce, an SEC commissioner, expressed support for such innovative projects. She highlighted that the allocation of tokens in the DePIN protocol is for compensation for work or services rendered, rather than as part of an investment scheme. This ruling provides clarity for other DePIN projects as well, encouraging the development of decentralized physical infrastructure.
DoubleZero’s Growing Presence in the Crypto Market
The listing on Coinbase adds to the growing list of exchanges that have supported DoubleZero, including Binance and Kraken. The project’s listing on a major platform like Coinbase further solidifies its position in the market. This step is seen as a significant achievement for the Solana-based protocol, especially as crypto exchanges typically have rigorous standards for legal, compliance, and technical security.
The 2Z token’s price saw a 3% increase following the announcement, with a rise in trading volume. The price was recorded at $0.496, marking a notable jump from the previous 24-hour low. However, the token’s debut earlier in the week saw a much higher surge, with the price skyrocketing by over 100% before stabilizing. Despite some profit-booking activities in the futures market, interest in the token remains high, with open interest in 2Z futures rising steadily.
Future Outlook for DoubleZero and DePIN Projects
DoubleZero’s success is likely to encourage more DePIN projects to seek similar recognition and support from regulatory bodies like the SEC. As the DePIN sector continues to grow, other projects such as Bittensor, RENDER, and Filecoin have also gained traction, following the SEC’s recent decisions.
These developments suggest that DePIN technologies will play an increasingly important role in the blockchain ecosystem, potentially transforming how decentralized networks interact with physical infrastructure.
The addition of DoubleZero to Coinbase is just the beginning of what could be a larger trend of decentralized infrastructure projects gaining mainstream adoption. With increasing regulatory clarity and support, such projects are poised to make significant strides in blockchain scalability, providing real-world capabilities to decentralized networks.
